DAPP Network Governance — 2021 YTD Recap
The DAPP Network Governance model, which was established in March, has enabled DAPP token holders to reach a consensus on various proposals that have been put forward to growth and mature the Network. The following summary highlights some of the proposals that have been passed year-to-date through 2021.
https://www.dappgovernance.com/proposal/detail/5
It was suggested that a governance fund could be established to provide funding for communal projects. The DAPP Network community can use this fund to propose grants, bounties, worker proposals, and other initiatives requiring funding (such as: liquidity mining rewards, impermanent loss protection, etc.).
Date Approved: May 9, 2021
Votes For: 100%
Votes Against: 0%
Status to Date: Approved and funded initially with 10m DAPPs donated from the LiquidApps Foundation.
https://www.dappgovernance.com/proposal/detail/6
The DAPP Network provides a universal bridging framework for enabling blockchain interoperability that has seen several community bridges built for migrating tokens between blockchains. With DAPP Network technology, any bridge could potentially enable the flow of DAPP tokens to Ethereum as ERC20s; However, each bridge would have its own minting contracts that could result in confusion if multiple variations of the DAPP token existed on Ethereum.
Community members have already expressed interest in establishing liquidity mining rewards on Ethereum, which will require the formal recognition of a DAPP token bridge and ERC20 contract that could be used for such a purpose. Proposal #6 was proposed to recognize the DAPP Account DAO token bridge and its DAPP ERC20 contract as the official DAPP token and its bridge for connecting it to Ethereum. It was also decided that they would be used for any future liquidity mining incentives on Ethereum.
Date Approved: May 25, 2021
Votes For: 100%
Votes Against: 0%
Status to Date: After the ERC20 contract was initially deployed, a Bancor audit found a small issue with the burning/minting functionality that did not meet its internal guidelines. A new contract was later deployed after passing another audit which was approved by governance as an amendment to this proposal.
https://www.dappgovernance.com/proposal/detail/7
After Proposal 5 and 6 were passed, which signaled the community’s desire to establish a governance fund and liquidity mining program on Ethereum, a follow up proposal was made to establish its funding mechanism for future governance initiatives.
By passing Proposal 7, the DAPP token holders reached consensus to increase network inflation from 2.71% to 15% with the intention of using these funds to establish liquidity mining incentives that includes impermanent loss protection as well as for funding other future governance initiatives such as bounties and worker proposals.
Out of the 15% inflation, 2.71% will be directed towards DSP staking and the other 12.29% will flow into the DAPP Governance Fund. Future proposals are expected to be made which will break down the 12.29% into more defined categories.
With this proposal in place, all of the initial steps needed to establish a liquidity incentive program on Bancor have been completed. A proposal for whitelisting DAPP on Bancor has also been published for community review.
Date Approved: May 25, 2021
Votes For: 100%
Votes Against: 0%
Status to Date: Smart contracts development is complete and is under internal audit.
https://www.dappgovernance.com/proposal/detail/8
Over the course of its first few months of existence, voter participation within DAPP Network governance has been less than ideal. That was due to the fact that token holders were forced to choose between staking their DAPP tokens or depositing them into the governance vault. In light of the fact that token holders sometimes stake their DAPPs for rewards, many of them were not willing to give up 100% of their rewards in order to participate in governance.
Proposal 8 was made to enable third party staking from the governance vault contract, allowing token holders who lock their DAPPs into governance to also stake 85% of their locked tokens to any DSP package, including those offering rewards/incentives.
Moreover, this proposal also served as the first bounty made through DAPP Network governance funding mechanism. The developer or the team who implement a third party staking mechanism into the DAPP governance contract, which is approved and executed by the DAPP Guardians, will receive 100k DAPPs as a reward.
Date Approved: May 31, 2021
Votes For: 100%
Votes Against: 0%
Status to Date: 100k DAPP bounty issued.
https://www.dappgovernance.com/proposal/detail/9
After passing Proposal #6, the original DAPP ERC20 contract underwent an audit by the Bancor community, which provided several recommendations for compliance with Bancor’s whitelisting guidelines. After reviewing the suggestions from the Bancor community, it was decided that the ERC20 contract would need to be refactored and then re-deployed, which required a new token address due to the immutable nature of smart contracts on Ethereum.
An updated DAPP ERC20 contract was deployed to 0x939B462ee3311f8926c047D2B576C389092b1649 and it was voted in as the official DAPP ERC20 token which will be used for all liquidity mining initiatives and any future DAPP Network utility on Ethereum.
Date Approved: July 12, 2021
Votes For: 100%
Votes Against: 0%
Status to Date: After being approved by DAPP Governance, the DAPP <> Ethereum bridge was upgraded via DAPP Account DAO MSIG to utilize the new ERC20 contract.
On June 4, a proposal draft for a collaboration with Bancor DAO was posted to the Bancor community to receive feedback on a potential liquidity initiative to incentivize bridging DAPP tokens to Ethereum and staking them into single sided staking on Bancor for liquidity provisioning.
The draft includes details on liquidity mining rewards and external impermanent loss protection. Feedback on the draft from the Bancor community has mostly been positive and the proposal will be voted on by their community on July 26.
View Proposal: https://gov.bancor.network/t/proposal-whitelist-dapp-network-dapp-w-500k-co-investment-and-external-il-protection/2338
All DAPP token holders are encouraged to participate in governance, to share ideas, and to play a more active role in shaping DAPP Network’s future. DAPP Governance voice calls are usually held inside the official DAPP Network Telegram channel every Thursday at 15:00 UTC.
Please click here to read an important disclaimer.
Additionally, the entire DAPP Network community is invited to join the dedicated DAPP Network governance Telegram channel, which was established by the community for continuing the conversations throughout the week. Click here to join the DAPP Network governance Telegram channel.
Originally published at https://medium.com on July 15, 2021.
