👨‍🔬 Governance Lab #064

Lab Report #064 - Lido DAO Delegate Program, Spark Tokenization Grand Prix, AAVEnomics Update, StablePod w/ Dennison, and more

Jul 27, 2024

Hello frens welcome back to the Governance Lab, your weekly source for all things StableLab, DeFi, and DAO Governance. Apologies for not posting the last few weeks, the team traveled to ETH CC and I took some time off.

We’re back and invigorated having met so many wonderful governance folks at the conference and throughout.

On This Week’s Issue 👀
💼 Lido DAO proposes public delegate platform and incentivization program
🏆 Spark Protocol announces Tokenization Grand Prix
💰 Aave DAO considers major AAVEnomics update
🎙️ New StablePod w/ Dennison Bertram (Tally)

Let’s dive in 🏊

Incentivization

Lido DAO proposes public delegate platform and incentivization program

Lido DAO is considering a proposal to establish a public delegate platform and a delegate incentivization program to boost governance participation and improve decision-making quality. Key features of the program include:
- 6-month pilot trial phase
- Requiring delegate threads on the Lido Forum
- Maintaining a 70% voting participation rate
- $150,000 in LDO tokens will be used to incentivize delegates
- Eligibility criteria of having more than 2M LDO delegated on both Snapshot and Aragon
The Delegate Oversight Committee will be responsible for evaluating and facilitating the program. If approved, the program will begin on September 8, 2024, with the first incentives distributed in early December 2024.

Tokenization

Spark Protocol announces Tokenization Grand Prix competition

Spark Protocol has announced the Spark Tokenization Grand Prix a competition aimed at onboarding up to $1B of tokenized assets. The competition focuses on short-duration US T-Bills and similar tokenized products, with applications opening on August 12, 2024. Key aspects of the competition include:
- Evaluation criteria based on pricing, liquidity, and strategic alignment with SparkDAO's goals
- Final decisions to be made by Maker Governance
- Potential for geographic and regulatory restrictions
An RFP process has begun generating interest from various entities, including BlackRock, Ondo, DigiFT, USTB, and Paxos International.

AAVEnomics

Aave DAO considers major AAVEnomics update

The Aave DAO is discussing a monumental proposal to update the protocol's economics, leveraging the recently introduced Safety Module Umbrella update. The proposal, authored by the ACI, outlines a multi-step journey to implement significant changes to the Aave ecosystem, including:
- Segregation of StkGHO and StkAAVE Safety Module coverages
- Introduction of "anti-GHO" tokens for StkAAVE holders
- Activation of Umbrella aToken Safety Modules (awETH and aUSDC)
- Implementation of a "Buy & Distribute" program for AAVE tokens
The proposal emphasizes a gradual, milestone-based approach to ensure long-term sustainability. The path being paved will ultimately introduce a “fee switch” at the lending protocol.

❲ Links ❳

🚀 Launches & Deployments

Introducing Abstract, an L2 for consumer crypto
Announcing Jito Restaking

📑 Insights & Reports

Wintermute DeFi Governance Digest: July 2024 | Week 4

❲ Proposal Tracker ❳

💬 DISCUSSION | Arbitrum - ARDC Additional Funding Request

Summary: This proposal requests an additional 1,200,000 ARB for the Arbitrum Research and Development Collective (ARDC) due to the significant drop in ARB token price. The goal is to support ARDC operations through August and September 2024, ensuring they can fulfill their mandate. Next steps include community feedback and a Snapshot vote on July 25, 2024.

✅ VOTE CONCLUDED | Gnosis - Establishment of Gnosis Operations Foundation

Summary: This proposal seeks approval to establish the Gnosis Operations Foundation as an additional legal conduit for GnosisDAO. The foundation aims to provide another mechanism for executing work in a decentralized environment, with setup costs up to 50,000 USDC and estimated annual expenses of 45,000 USDC.

From the Lab

Proposal: Compound Delegate Race

We're excited to introduce a delegate race to ramp up governance engagement at Compound DAO. Alongside the GWSG, which includes Arana Digital and PGov, we’re proposing Compound allocate up to 250K COMP from the treasury to further active and strengthen its delegate ecosystem. Our initial proposal covers key program details such as COMP source, delegate requirements, and other factors. Future proposals will include delegate rewards and a call for new delegates.

With this proposal, we aim to formalize the Compound Delegate Program, a significant move towards strengthening governance at Compound.

▶︎ Read the full proposal HERE

Podcast: Tally - Fixing DAO Incentive Misalignment

In the latest StablePod episode, we’re joined by Dennison Bertram, Co-founder of Tally. We discuss the state of DAO tooling in 2024, DAO contributor extractive behavior, governance token value and utility, the Tally Protocol, and much more.

📺 Watch on YouTube
🎧 Listen on Spotify & Apple
🪙 Free Mint on Pods

Event Recap: A Governance Gathering

Huge thanks to everyone who joined us at our side event in Brussels. 🫶

❲ Our Voting ❳

📆 July 19th → July 25th | 🗳️ Total Votes: 27

See our full vote history and detailed rationale HERE.

EthCC Photo Dump

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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