👨🔬 Governance Lab #052
Lab Report #052 - Aave DAO Chaos Labs Engagement Amendment, Gnosis Guild Stewardship of Gnosis DAO, Gitcoin DAO Treasury Management Strategy, and more
gm frens 👋
Welcome back to another weekly edition of the Governance Lab, your source for all things StableLab, DeFi, and DAO Governance.
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At a Glance 👀
👻 Aave DAO receives Chaos Labs engagement amendment
🦉 Gnosis DAO discusses stewardship by Gnosis Guild
🌱 Gitcoin DAO considers 2024 treasury management strategy
🎙️ New StablePod w/ Jihoz (Axie Infinity | Ronin)
Let’s dive in 🏊
Risky Business
Aave DAO receives Chaos Labs engagement amendment
On Wednesday, Aave Risk Service Providers Chaos Labs submitted a proposal to increase their annual compensation from $1.6M to $2M. In November 2023, Aave DAO renewed the team at a lower rate due to bear market conditions. Now, as conditions have improved, Chaos Labs seeks increased funding to deploy more resources, develop the Chaos Risk Oracle, and expand monitoring and alerts. The proposal requests activating a stream of 400,000 aUSDC or GHO as payment.
A Snapshot vote is scheduled for April 15th followed by an AIP should that pass. Aave DAO is currently without a second risk provider, with an AIP expected soon where the community will select among three potential candidates.
Gnosis Gains
Gnosis Guild proposes to steward GnosisDAO governance
The Gnosis Guild team has submitted a proposal to guide GnosisDAO's governance through strategic R&D, technical implementation, and ongoing stewardship. They outline key objectives such as improving governance infrastructure, fostering ecosystem growth and decentralization, and positioning GnosisDAO as a governance innovator. According to their proposal, the team will focus on developing a new governance architecture and roadmap, implementing novel funding mechanisms, and facilitating progressive DAO decentralization.
In total, the team requests annual compensation of 0.3% of GnosisDAO's AUM, paid monthly in 50% USDC and 50% GNO (with GNO locked for 1 year). Should the proposal pass, an ongoing service agreement between the two parties would take effect and could be terminated by either party with 90 days' notice.
Treasury Trove
Gitcoin DAO discusses 2024 treasury management strategy
Gitcoin Foundation has initiated a discussion aimed at aligning the community on a unified treasury management strategy for 2024. The goal is to ensure Gitcoin's financial sustainability as they work towards achieving a $50M GMV target. Gitcoin's treasury currently holds approximately $5M in USDC and GTC.
To implement this strategy, the post proposes several ideas, including treasury diversification and yield generation through swaps and DeFi engagements, exploring partnerships and financial instruments within the DeFi ecosystem, executing strategic swaps to optimize the treasury's composition and stability, and potentially establishing the Gitcoin Treasury Management Committee (GTMC) to oversee strategies, diversification efforts, staking activities, partnerships, and transparency.
The next steps involve submitting formal proposals for the various initiatives and gathering community feedback on the formation of the GTMC. The initiatives would be executed in parallel by the GTMC (if formed) and the Gitcoin Foundation.
❲ Links ❳
🚀 Launches & Deployments
📑 Insights & Reports
Wintermute DeFi Governance Digest: April 2024 | Week 2
Restaking and the Price of Trust
Incentivizing L2 Decentralization
DAO Governance Categories
DAOs are dead, or are they?
Safe: Unlocking the Era of Programmable Ownership
🧗 Milestones & Updates
Aave 3.1 and Origin by BGD Labs
Lido Dual Governance Explainer
Balancer March 2024 Treasury Report
🔒 Security, Risk, & Hacks
Uniswap Labs receives Wells Notice from SEC
🗞️ Miscellaneous
LTIPP Voting Dashboard
Introducing Doxamarket
📺 Podcasts & Listens
Rafael Solari (Tally): The State of DAO Governance on DAO Talk Weekly
❲ Proposal Tracker ❳
💬 DISCUSSION | Lido - Dual Governance: Design and Implementation
Summary: Here, the Lido research team seeks approval from the DAO to implement the Dual Governance mechanism design. DG aims to give stakers a dynamic user-extensible timelock on DAO decisions and a rage quit mechanism/ The mechanism design, technical architecture, and code draft are outlined on GitHub. If approved, the team will proceed with technical implementation and collaborate with external research and security teams. The approximate timeline targets a testnet deployment around Q3, with a potential mainnet launch in late Q3 or Q4 2024, subject to change based on security checks and testnet results.
💬 DISCUSSION | Aave - ‘Merit is Forever’ Reward System Program Expansion
Summary: Here, Marc Zeller proposes the long-term adoption of the Merit reward system with a quarterly budget of $5M for the next 12 months. The proposal is motivated by the success of the first two Merit rounds in counteracting the negative impact of the Morpho optimizer on Aave DAO revenue and supporting the GHO stablecoin peg. Key aspects include incorporating Merit funding within Aave Finance's Treasury Management AIPs, continuing collaboration with Angle Protocol's Merkl product, and granting flexibility to allocate portions of the budget to target influential users and L2 markets.
💬 DISCUSSION | Arbitrum - The Arbitrum Orbit Stimulus Pilot Program
Summary: This proposal introduces an objective, metric-driven onchain incentives program to provide infrastructure and tokens to help grow up to six Arbitrum Orbit chains over a six-month period. The proposal aims to endow Orbit chains with long-term onchain infrastructure for sustainable growth while improving upon existing incentive programs by addressing issues of bureaucracy, capture, and inefficiencies. The program will be managed by an Orbit Pilot Council, Orbit Grantees, and Incentive Managers, leveraging composable onchain tools like Boost Protocol and Llama.
From the Lab
Ronin: The Frontier of Web3 Gaming
In our latest StablePod episode, we’re joined by Jihoz, Co-founder of Axie Infinity & Ronin. We discuss the decentralization of the Ronin Chain, where web3 gaming and DeFi collide, governance of web3 games, and more!
StablePod now on Pods
You can now mint all of our StablePod episodes for FREE on Pods, the onchain podcast platform.
Collect ‘em all on Pods HERE
❲ Our Voting ❳
📆 April 5th → April 11th | 🗳️ Total Votes: 105
See our full vote history and detailed rationale HERE.
Meme
The last time Doo was at ETHCC … We’ll see you there for Part 2! 🎤⚡🇧🇪
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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