👨🔬 Governance Lab #033
Lab Report #033 - SafeDAO Governance Framework, Blur Fee Switch, Polygon Protocol Council, and more
Welcome back to the Governance Lab, your weekly source for all things StableLab, DeFi, and DAO Governance. Currently up in the mountains with a slow connection so this is a special Friday edition. This week we had platform fee discourse, Aave Gov v3 activation was postponed, Polygon has introduced its own community body responsible for protocol upgrades, Optimism votes on an anticapture commission tasked with representing delegates as a key stakeholder within the Token House and preventing the capture of any one stakeholder. This and many more storylines below. Enjoy your weekend! ⛰️
At a Glance 👀
✅ SafeDAO approves robust governance framework
💡 Blur discusses activating a fee switch
💼 Polygon introduces a Protocol Council
🎙️ New StablePod episode w/ Marc Zeller
Let’s dive in 🏊
The Framework
SafeDAO approves governance framework
SafeDAO has officially approved a robust governance framework, providing a clear roadmap for effective decision-making and participation within the DAO. The framework outlines the key stakeholders involved in governance and establishes a well-defined approach and process.
At its core, the framework establishes the Constitution as the primary source of authority, followed by the Governance framework itself, Seasons, and Proposals. The framework defines the rights and responsibilities of various stakeholders, such as SAFE token holders, delegates, Guardians, non-token holders, and the Safe Ecosystem Foundation. Furthermore, it defines the purpose and mission of the Safe Ecosystem Foundation, along with the Foundation Council, which serves as the highest governing body.
In addition to stakeholder involvement, the framework outlines the domains of governance, various proposal types, the governance cycle and seasons, and the decision-making process. By adopting such a comprehensive governance framework, SafeDAO aims to enhance transparency, accountability, and overall effectiveness in its young and developing governance culture.
The Fee Switch
Blur discusses activating a fee switch
Blur, the leading NFT marketplace, is currently discussing a proposal to revamp the existing BLUR tokenomics by introducing a platform fee.
According to the proposal, a nominal base trading fee of 1% will be introduced. The fees generated from this will flow back into a smart contract that systematically buys back and burns the BLUR token daily. Furthermore, the fee will use a tiered structure offering discounts to users based on the amount of BLUR tokens held in their wallets.
The proposed fee and enhanced token utility hopes to revitalize the struggling BLUR token. Feedback from the community thus far has primarily focused on the timing of the trading fee, concerns with the fee percentage being too high, as well as the possibility of adding the fee to other Blur products.
The Council
Polygon introduces a Protocol Council
Polygon has established the Protocol Council, a governing body tasked with managing regular and emergency upgrades to the system’s smart contracts. Comprising thirteen community representatives selected for their alignment with Ethereum and the L2 ecosystem, the council includes notable figures such as Justin Drake, L2Beat, ZachXBT, Anthony Sassano, and others.
To enact regular changes, the council will require a 7/13 consensus and a 10-day timelock. In the event of emergency changes, a 10/13 consensus will be necessary, with no timelock. Additionally, the council will hold the authority to add or remove members via a 7/13 consensus and a 10-day timelock.
The establishment of the council lays the groundwork for the expected technical upgrades essential for Polygon 2.0 and future developments.
❲ Links ❳
🚀 Launches & Deployments
📑 Insights & Reports
Designing Reward Systems for Web3 Governance
Uniswap Fees and Open-Source Business Models
dYdX v4 Overview Report
Exploring the DeFi Tokenomics Landscape
Stewarding the Future: Uniswap Foundation's Vision for Hooks'
NounsDAO's Natural Demise
The Fundamentals of Chronicle Protocol
Mapping the Data Landscape
🧗 Milestones & Updates
Balancer Maxis September 2023 Update
Balancer Treasury Report September 2023
SparkLend User Metrics #1
🔒 Security, Risk, & Hacks
Ajna Protocol Vulnerability Post-Mortem
🗞️ Miscellaneous
Uniswap Introduces 0.15% Platform Fee
Snapshot is live on Polygon zkEVM
Celestia Incentive Spend
Optimism’s Anticapture Commission
📺 Podcasts & Listens
Sam Kazemian: Inside Frax Finance on 0xResearch
❲ Proposal Tracker ❳
Aave - [ARFC] Add FXS to Ethereum V3
Summary: This proposal aims to onboard FXS onto Ethereum Aave V3. Frax Shares Token (FXS) is the governance/utility token for Frax Finance, the protocol behind the FRAX stablecoin. The proposal suggests initial parameter recommendations, including a supply cap of 800k, isolation mode enabled, a borrow cap of 500k, and a debt ceiling set at $4M.
Stargate - Approve Stargate Deployment on Scroll
Summary: This proposal aims to gather community approval to launch Stargate on Scroll, an L2 scaling bytecode-equivalent ZK-Rollup solution. The proposal emphasizes the importance of launching the bridge protocol as soon as possible, pending Scroll's mainnet launch. Upon launch, two Stargate pools, ETH and USDC, will be activated. Scroll will facilitate liquidity for these pools by providing 1K ETH and 1M USD, respectively.
Lido - wstETH Deployment on zkSync
Summary: Matter Labs presents a proposition to deploy wstETH on the zkSync Era Mainnet, granting complete ownership and control of the bridge to the Lido DAO. The proposal highlights zkSync's remarkable growth and the increasing demand for wstETH on its platform. Additionally, an ongoing development of a canonical wstETH bridge is already underway.
Aave - ACI Phase II
Summary: This proposal aims to extend the service provider agreement between the Aave Chan Initiative and Aave DAO for an additional six months, with a total funding of 375K GHO. The ACI will remain focused on three main focus areas for the DAO: Skyward, Growth, and Representation. During Phase 2, the ACI will continue and expand its existing services such as Skyward, assisting community members who require help with proposal creation. The ACI aims to be a driving force for Aave protocol growth and BD. They will focus on onboarding Liquid Staking Tokens as new assets, driving GHO growth and adoption, and exploring other synergies. Additionally, the ACI will continue to develop frameworks that support DAO participants and represent the community and Aave at hackathons and in-person events.
Uniswap - Onboarding Ekubo, Inc. as a core developer of Uniswap Protocol
Summary: This proposal seeks funding of 3M UNI to support the ongoing development of Ekubo Protocol, an AMM on Starknet. As part of this funding arrangement, the Uniswap DAO will be entitled to 20% of future Ekubo tokens. Additionally, the proposal includes an update to the Uniswap V4 license, granting Ekubo, Inc. permission to utilize the AMM on Starknet and contribute to the Uniswap V4 protocol.
From the Lab
StablePod - The Growth & Maturity of Aave DAO 🎙️
We just dropped a new StablePod episode featuring Marc Zeller, Founder of the ACI. In our conversation, we delve into the ascent and rise of the ACI, how Aave DAO contributes to the growth of the protocol, and what’s in store for the leading lending protocol in 2024.
SafeDAO Bi-Weekly Update 📰
Check out the most recent news roundup for updates on what's happening in the Safe Ecosystem. Our goal with these summaries is to present a concise snapshot of SafeDAO’s activities every two weeks.
Hop Incentive Strategy Report 📎
In July, we received a grant to explore incentive strategies that can help Hop Protocol. We have since published the "Hop Protocol: Incentive Strategy Report". This report delves into the design of effective incentive mechanisms, highlighting the various existing blockchain bridges and incentives they use, and providing valuable recommendations for Hop on how to adopt and potentially leverage these strategies.
❲ Our Voting ❳
📆 October 13th → October 19th | 🗳️ Total Votes: 37
See our full vote history and detailed rationale HERE.
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I’d love to hear from you! Drop me a DM on Twitter with your thoughts, feedback, or any comments you may have about the newsletter. I write for you, the reader :)
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