StaFi DAO Enters Exploration Phase & Partners with Commonwealth and Edgeware
Since day one of StaFi, we have seeked to establish a DAO (Decentralized Autonomous Organization), where everyone who cares about the future of StaFi can engage in its governance. Therefore, we plan to gradually introduce the DAO governance structure into StaFi. Today, we are happy to announce that we have built tools that facilitate DAO governance for our community members. This marks the official entry of StaFi’s Treasury (Treasury Fund) governance in its exploration stage.
In order to meet the sustainable development and decentralization of StaFi Protocol, the Treasury was written into the agreement at the beginning. The funds in the treasury will be used to motivate individuals or teams who contribute to StaFi.
StaFi Treasury is mainly collected from the following 4 sources:
1.Circulation fee: When users use rToken to obtain liquidity, part of the transaction fee collected will be pooled into the Treasury.
2.Transaction fee: part of the transaction fee will be rewarded to the validator, and the remaining will be collected by Treasury.
3.Slash: The Slash penalty will be proportionately submitted to the whistle-blower, and the remaining will enter the Treasury.
4.Staking rewards: When the staking rate does not reach the ideal 50%, the excess inflation rewards will be stored in the Treasury.
When we were designing Treasury, our initial purpose was to use the fund in the following three aspects:
1.Develop new contracts (Staking Contracts), such as new Staking contracts for StaFi.
2.Develop new protocols, such as developing other types of synthetic-tokens which could be staked on StaFi.
3.Develop rToken (financial) derivatives, such as rToken-based Staking node products.
Two Stages of DAO Governance
In order to strike a balance between efficient development and community autonomy, we will divide Treasury’s DAO governance into the following two stages:
Stage 1: The DAO governance is headed by foundation governance (StaFi team), and complemented by the community.
This is the transitional, but not final or ideal, stage, and is also where we are right now. In this stage, the StaFi system is still immature, and products such as ETH Bridge, rToken, and Staking Derivatives have not yet been fully developed. Meanwhile, they are facing fierce competition from their counterparts, and we have not set sophisticated autonomy rules either. So, at this stage, we believe that it is irrational to pursue decentralized governance. It would greatly damage the development of StaFi and disappoint the community.
Therefore, in the transitional phase, the StaFi team will shoulder the responsibility of the Treasury governance. We will also promptly update our development plan through the Treasury DAO governance forum, and listen to your voice with an open mind. At the same time, we will make transition to community voting in regards to some issues such as marketing cost proposals, grant funding plans, etc.
Phase 2: Treasury will be mainly governed by the community, with the assistance of the StaFi team.
This will take place when StaFi’s core products are relatively complete and the community’s autonomy aspect is relatively mature. At that time, Treasury-related decisions will be completely made by the community autonomously, because we believe that by then, community members would be already familiar with the StaFi DAO governance process, and have a better judgment on products and businesses. The StaFi ecosystem will be more mature as the community becomes more autonomous. StaFi’s job then will be to assist the community with decision-making, and participate in the execution of part. The StaFi Treasury will present a perfect state of community autonomy, and lay a solid groundwork for the final full autonomy of the StaFi community. This is what we have always pursued and we sincerely believe that that day is not far from us.
Therefore, in the second stage, the team will transfer the governance of Treasury to the community, and the treasury’s income and expenditure decisions will be made by the community. Each community member who cares about the development of the StaFi project and the use of treasury funds can initiate new proposals through the governance forum, or vote to decide whether to add or modify the expenditure items of the treasury funds.
Proposal for Transition Period of Treasury DAO
The Treasury DAO governance during the transition period will be divided into two parts, Off-chain Discussions and On-chain Governance. The on-chain voting part will not be opened immediately because the rules are not thorough yet.
The significance of the off-chain discussion section is that the sponsor of the proposal may hope to share the details, purpose and significance of the proposal to the community before launching it. By that means, the sponsor can call on community members to discuss and collect everyone’s opinions and suggestions. Obviously, the existence of this information on the chain will greatly increase the storage on the chain, and it will also increase the cost of community users’ participation in discussions. Therefore, we will record this part of information in the form of off-chain discussion. This can greatly reduce the cost for everyone to participate in the governance of the StaFi Treasury.
At present, the off-chain discussion forum has 5 sections, and users can initiate discussions depending on what interests them. Of course, the topics have been proposed by the team based on the current state of StaFi. More aspects will be discussed in the future.
Introduction of 5 sections in the forum:
1) rToken Proposals: Discussions will center on rToken in this section. You can initiate discussions or proposals on the latest development of rToken, rToken design ideas, rToken forging fees, and the types of rTokens.
2) Staking Derivatives: Users here will mainly discuss staking derivatives, such as the design of staking derivatives, staking-based leveraged products, index products, mortgage lending products, futures or insurance products. The ultimate goal of StaFi is to develop Staking Derivatives and set standards for common protocols in this field, so we hope that the community can actively contribute ideas in this regard and help us construct the ecosystem together.
3) Technical discussion: Here members can talk about the technical aspects of StaFi. You can put forward your opinions or suggestions on the validator process, node operation, Staking Contract, rToken Mint&Burn, etc.
4) Treasury Proposals: Everything about the Treasury will be discussed here. You can discuss and propose suggestions about the treasury revenue sources, expenditures, funding plans, destruction ratio, etc.
5) Suggestions: You can raise your general suggestions to the StaFi team here. Please be straightforward and speak out about the shortcomings of StaFi, community, partnerships and marketing strategies, etc.. We will listen with an open mind.
The on-chain voting section mainly involves the creation of the proposal by the proposer, the on-chain voting on the proposal, the nomination and election of the Council, etc. It should be noted that the proposer will be required to Stake some FIS before launching a proposal, in order to filter out invalid spam proposals and make sure that important proposals can draw our attention. During the transition period, we have temporarily raised the Staking requirements for initiating on-chain proposals to 100,000 FIS because the on-chain governance is still immature. We really appreciate your understanding. Once we believe that it is the right time, we will set the threshold to a reasonable level and encourage everyone to initiate on-chain proposals.
At the same time, we welcome all discussions on the rules of on-chain governance in the forum. We will make adjustments based on the community’s suggestions and release a complete governance plan when it is made.
Cooperation with Commonwealth Labs and Edgeware
The Treasury’s DAO governance tool was provided by our partner Commonwealth Labs(core development team of Edgeware). Commonwealth Labs is the most professional DAO solution provider in the Polkadot ecosystem, and has already cooperated with Plasm, NEAR Protocol, Kusama, Kulupu and other projects. StaFi is very grateful to the Commonwealth Labs team for their professional advice and assistance on the governance of the Treasury DAO.
And the cooperation with Commonwealth Labs in building the StaFi Treasury DAO is only the beginning of our close cooperation. In the future, we will introduce rToken into Edgeware together and design rEDG tokens to release the liquidity of staked EDG token assets. rEDG will help to increase stakers’ willingness to participate in the EDG Staking, thereby improving the security of Edgeware.
You can log into StaFi’s Treasury DAO page through https://commonwealth.im/stafi to participate in off-chain discussions and on-chain governance.
It is recommended that you use the Chrome browser to open the above URL and install the Polkdot.js extension, which can be downloaded through: https://github.com/polkadot-js/extension
Step1: Wallet address Login
Click Log in, then choose to log in with the StaFi wallet address.
This page shows that your terminal is connecting to the chain. It may take about 10 seconds.
This page prompts you that the wallet is connected, but there is no account attached to it. This may be because you have not yet registered an account on StaFi’s Treasury DAO forum.
Step 2: Create an account
Click on the Polkdot.js extender, you will see an add button. Click to create a new account. Please set a name and password, and log in to the StaFi DAO forum. If you already have a StaFi account, the system will automatically recognize it, so you can skip this step.
When your account is all set, click the property button on the right, and then check [Visble (always inject)], so that the system can automatically recognize the registered account when you log in afterwards.
Step 3: Complete login
Return to the login interface, and click on the wallet. The system will recognize the registered Account, as shown in the following screenshot:
Click on the account and enter the password to log in. (As shown in the screenshot below:)
Step 4: Start a discussion
Click [New Thread], select Topic, enter your proposal, and click [Create thread] to initiate your own thread.
About StaFi Protocol
StaFi is the first DeFi protocol unlocking liquidity of staked assets. Users can stake PoS tokens through StaFi and receive rTokens in return, which are available for trading, while still earning staking rewards. FIS is the native token on StaFi Chain. FIS is required to provide security to the network by staking, pay for transaction fees on the StaFi chain, and mint & redeem rTokens.
Telegram Chat: https://t.me/stafi_protocol
Telegram Announcements: https://t.me/stafi_ann