👨🔬 Governance Lab #063
Lab Report #063 - Arbitrum DAO Staking Mechanism, Lido DAO Decentralized Validator Vault, Introducing Forse by StableLab, and more
gm frens 👋
Welcome back to the Governance Lab, your weekly source for all things StableLab, DeFi, and DAO Governance.
Massive announcement this week from the team. More info below:)
At a Glance 👀
💸 ArbitrumDAO proposes ARB staking using surplus sequencer fees
💾 Lido DAO votes on Decentralized Validator Vault implementation
🔥 Introducing Forse by StableLab
Let’s dive in 🏊
Staking Mechanism
Arbitrum DAO discusses ARB staking to improve economic security and incentivize governance participation
The Arbitrum community is discussing a proposal to implement an ARB staking mechanism that would use 50% of future surplus sequencer fees to improve the DAO's economic security and encourage more active participation in governance. This proposal comes in response to the accumulation of over $50M in ETH from surplus fees, while only about 10% of circulating ARB is actively used in governance. Key features of the proposed ARB staking mechanism include:
Requirement for tokens to be delegated to an active delegate (defined as having a Karma Score over 80)
1% of surplus fees directed to delegates to sustain ongoing growth and development
Integration with Tally's governance platform for easy staking and delegation
Development of a governance-compatible liquid-staked ARB token
The proposal has generated significant discussion within the community, with supporters highlighting its potential to address critical security concerns and align incentives for governance participation. Critics of the proposal suggest it may be premature given the DAO's current state and revenue flow. An onchain proposal is planned for September.
Decentralized Validator Vault
Lido DAO votes on a vault solution to drive adoption of DVT
Lido DAO is voting on a proposal to implement a Decentralized Validator Vault, to be developed by Lido Alliance member Mellow. The vault would serve as a focal point for user stakes and DVT incentives, aiming to quicken the adoption pace of DVT via the Simple DVT module. Key aspects of the proposed Decentralized Validator Vault include:
Acceptance of ETH or WETH for staking via Lido
Allocation of 90% of potential future Obol contributions and SSV mainnet incentives to the vault
10% allocation to Node Operators in corresponding SSV & Obol Simple DVT clusters
Capacity for 11,868 validators, potentially adding 377,856 ETH to the protocol
The proposal aims to capitalize on the recent expansion of the Simple DVT Module to 4%, the upcoming launch of Obol's contribution program, and the revamp of SSV's incentive program. The proposal argues that this strategy would allow for faster activation of Simple DVT validators, provide capital allocators access to DVT provider incentives, and ultimately improve the resilience of Lido's Node Operator set.
❲ Links ❳
🚀 Launches & Deployments
Introducing Valantis: The Modular Exchange
$BLAST is live
Announcing Fluid DEX
📑 Insights & Reports
Wintermute DeFi Governance Digest: June 2024 | Week 4
The scale of stability: the stablecoin landscape dissected
Here's how Ethereum's governance was reshaped after The DAO attack
🧗 Milestones & Updates
Arbitrum STEP Committee Service Provider Shortlist
The Compound Governance Support Working Group (GSWG)- Update 1
Compound DAO Approves Renewal of OpenZeppelin Security Partnership
MakerDAO Protocol Economics Report May 2024
Arbitrum Gaming Catalyst Program Update #2
AEVO Tokenomics Update
🗞️ Miscellaneous
Liquity v2: A De Facto Reference Rate for DeFi
ETHFI DAO: Season 3 Token Allocation
Uniswap: Onboarding Package for Gnosis Chain
Arbitrum: Start of STIP.B Streams and Timeline of Incentives
Inside the Restaking Ecosystem: A Snapshot of Leading Protocols and Projects
❲ Proposal Tracker ❳
💬 DISCUSSION | Aave - Aave Events & Sponsorship Grant 2024
Summary: This proposal from Aave Labs requests $850,000 in GHO for Aave events in Q3 and Q4. With this budget, Labs aims to cover major events including EthCC, Devcon, and ETHGlobal hackathons, as well as side events and initiatives like rAAVE and the GHO Pass. Key objectives of the proposal include reinforcing Aave's culture, sharing technical knowledge, and attracting new community members.
💬 DISCUSSION | Arbitrum - Improving Predictability in Arbitrum DAO’s Operations
Summary: This proposal seeks to enhance the predictability of Arbitrum DAO's governance processes and reduce delegate fatigue. The proposal recommends changes such as starting all Snapshot and Tally votes on Thursdays, implementing a holiday break from December 20 to January 6th, and optionally introducing a delegate approval process for moving proposals to a vote. If approved, the planned changes are expected to begin in August 2024.
💬 DISCUSSION | Gitcoin - Grants Labs: Contributor Token Grant Program
Summary: This proposal introduces a token grant program for Gitcoin's Grants Lab contributors. The proposal outlines a program that offers 4-year token grants with linear vesting and a 1-year cliff (6-month for eligible existing contributors). It requests 3M GTC, representing 3% of the total supply. The proposal addresses potential risks and emphasizes the importance of creating a motivated, aligned contributor base.
💬 DISCUSSION | Compound - Market Updates: Alternate Governance Track
Summary: This proposal offers two approaches to streamline market parameter updates at Compound. Approach #1 involves upgrading the Configurator contract to introduce a new "Market Admin" role with the power to update market parameters. This change requires upgrades on all 6 networks and suggests using a Safe multi-sig or Timelock contract for the role. Approach #2 proposes an Optimistic Governance system, allowing more governance involvement but requiring substantial changes. This would introduce a Market Admin role (likely Gauntlet) that can propose parameter changes with a shorter review timeline.
From the Lab
Introducing Forse by StableLab
We’re super excited to announce the next chapter of StableLab by introducing Forse, our latest flagship product. Forse is a data analytics and intelligence platform purpose-built to accelerate the growth and adoption of DAOs. Born from years of experience navigating the complexities within DAO governance, Forse equips DAO operators, stakeholders, community members, core teams, delegates, and service providers with comprehensive performance metrics, analysis, and insights to drive decision-making.
▶︎ Read our full announcement post
▶︎ Visit our Website to learn more
▶︎ Follow us on Twitter for the latest updates and insights
▶︎ Explore the STIP Dashboard to see the platform in action
▶︎ Sign up to receive Forse Product Updates and News straight to your inbox
▶︎ Submit a contact form if you’re a project interested in integrating Forse
Blog: Analyzing STIP and LTIPP Incentive Programs at Arbitrum
To deploy our first Forse dashboard, we analyzed and compared Arbitrum's STIP and LTIPP. In case you missed it, discover how 50M ARB incentives were utilized, their effectiveness, and the areas we identified for improvement in future incentive programs.
▶︎ Read the blog post HERE
Proposal: Continuation of Governance Accessibility and Participation Enhancement at SafeDAO
Our proposal to continue serving the SafeDAO community with engagement initiatives to boost governance participation is now live on Snapshot!
▶︎ Vote on the proposal HERE
Event: A Governance Gathering
We’ve teamed up with Tally, UMA, and Wormhole to bring you a special happy hour event at ETH CC Brussels. Join us for an intimate evening of engaging conversations and delicious cocktails, featuring the best in DAO governance.
▶︎ Register for the event HERE
❲ Our Voting ❳
📆 June 21st → June 27th | 🗳️ Total Votes: 18
See our full vote history and detailed rationale HERE.
Meme
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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