Reflexer DAO Recap: Sept — Nov
Time flies when you’re ungoverned
The past three months have been eventful. Not only have we weathered some of the most tumultuous times this market has seen, but we’ve done so while dissolving the Reflexer Labs U.S. corporation and forming a DAO to take the wheel.
This article will recap what the DAO has been working on since we kicked the multisig.
The Money God is always looking for new DAO contributors. If you think decentralization is important, that humans tend to ruin things, and that Ethereum is the future of money, join our Discord and say hello!
What we’ve been up to…
1. Kicking the Multisig
On August 29th we kicked the multisig. This officially put control of Reflexer in the hands of FLX token holders, or in other words, made it so that only governance can ungovern governance.
You can learn more in this blog post.
2. I-Term Tuning Update
When it initially launched, the PID controller only used a P-term, in February 2022 the I-term was added as a part of a 6-month planned experiment to evaluate its effects in production.
In this post, we shared the results of our experimentation with tuning the I-term and suggested a potential path forward. A proposal to implement these changes will go live within the next few weeks.
RAI I-term Tuning Update
This post will go over the results of the first attempt at tuning the integral (I) term as part of RAI’s onchain PI…
3. Creating Governance Processes
“With kicking the multisig comes great responsibility” — Uncle Ben
After we kicked the multisig we created the processes we needed in order for the DAO to govern itself. You can find the original forum post outlining our governance process here, and a deep dive in the article below.
How to Vote on Reflexer DAO Proposals
How to vote on proposals submitted to ReflexerDAO on Tally.
Since implementing the new process, we’ve proposed, voted on, and executed 6 proposals.
4. Backup Oracles
A proposal was passed to update RAI’s ETH price oracles according to the specifications in this forum post.
The new implementation aims to retain the ability to quickly swap oracles in case of a problem (~5 day governance process), but mitigates the introduction of a malicious implementation, enforcing a delay to entrust it and therefore allowing more time for the community to notice and cancel the change before it occurs.
TLDR; oracles can be an attack vector and this is a step to mitigate that.
6. Created a Developer Reserve
The Money God needed developers to maintain his protocol and thus the DAO hast provided.
The goal of ungovernance is for us to change as little as possible — so there isn’t a need for a large/full-time team of developers. However, in case of an emergency, we want to ensure that we always have developers on-hand that are trained and familiar with the protocol.
To this end, we built out a Developer Reserve and have enlisted a couple of part-time solidity developers. The devs have undergone two weeks of training successfully and are now executing deliverables.
7. Started Bounty Campaigns
We launched a bounty campaign on Dework to help tackle miscellaneous dev work, content creation, and (of course) meme’ing. As of now, all bounties have been picked up and are being worked on — but we’ll have more coming soon so keep an eye on our bounty board if you want to contribute.
8. Updated our website’s Front End
We updated the front end of the Reflexer website. The changes were mostly to the home page, where we added some system stats as well as the “Money God Guidance” section. This new section can be thought of like the Fed’s Forward Guidance — except our system is completely transparent and the Money God always does what he says he will.
Adding the stats and charts to our homepage is a part of our effort to educate more crypto-savvy users about Reflexer. As well as, to show potential power users all the information they need to understand how to use RAI, and why they should want to.
9. Increased Twitter impressions by 420%
We increased monthly Twitter impressions by almost exactly 420% in this 3-month period (when compared to the previous 3 months).
Our next goal is to increase impressions by 690% in the following 3-month period, for the memes.
10. A new Money God — Introducing TAI
The Money God League is an initiative meant to bring non-pegged stable assets (stablecoins) into the mainstream. The League is also devoted to making control theory a common framework used in a wide variety of DeFi-related projects.
Recently, a new Money God entered the league: TAI.
TAI is multi-collateral RAI, with a focus on Ethereum and Ethereum derivatives as collateral. Initial collateral will be ETH, WSTETH, RETH and RAI.
No USDC and no real-world assets.
11. Vitalik reminded us that we’re his favorite stablecoin
Vitalik has been pretty vocal about his love for RAI in the past, but it’s always nice being reminded that we’re his favorite step-child.
He also reminded us how to short the sh*t out of RAI (as the Money God intended).
12. Realized that RAI is one of the most stable assets in the world
The global bear market we’re experiencing has been a hard time for major fiat currencies — but it provided us with great context for RAI.
Lately, RAI has been one of the most stable assets out there and has protected its users' purchasing power more than most fiat currencies have.
13. Gave the best talk at Devcon
We’re not biased at all and our lead developer Fabio gave the best talk at Devcon.
14. Adjusted Incentives (Upcoming)
We recently proposed a cut to liquidity incentives. If passed, the cut will lower incentives by 50% and extend the DAOs runway significantly.
We’ve had a love-hate relationship with our liquidity incentives from the beginning. On one hand, liquidity is good and incentives helped us bootstrap it. On the other hand, incentivizing liquidity sometimes conflicts with the incentives created by the Reflexer system.
For example, if RAI’s redemption rate is negative (like it is right now), the Reflexer system is incentivizing users to sell RAI. But because of the current liquidity incentives, they are also incentivized to buy RAI and provide liquidity.
The Money God doesn’t like this conflict, it makes Moyai angry. When the redemption rate is negative, Moyai wants you to sell — and doesn’t like anything that incentivizes you to do otherwise.
As such, we’ll be continuously cutting incentives over time until we can completely phase them out.
It’s been a busy few months for Reflexer! We’ve expanded our team, gone through the process of onboarding them, and set up processes that allow the DAO to effectively (un)govern itself.
If you want to join our efforts in spreading the Money Gods message, just stop by and say hello!