👨🔬 Governance Lab #077
Lab Report #077 - MORPHO Transferability, Ethena Fee Switch, Balancer v3 Launch, and more
gm frens 👋
Welcome back to the Governance Lab, your weekly source for all things StableLab, DeFi, and DAO Governance. Apologies for the brief hiatus as the team traveled to Thailand for a team offsite followed by the biggest conference in the space, Devcon.
Let’s update you on what happened this week across DAO governance and beyond.
At a Glance 👀
🔄 Morpho DAO enables MORPHO token transferability
💱 Ethena approves Fee Switch proposal
🥉 Balancer unveils V3 with optimized fee structure
🎥 In Conversation w/ Gustav Arentoft
Let’s dive in 🏊
Morpho
Morpho DAO enables transferability of the MORPHO token
The Morpho DAO has voted to enable transferability of its native MORPHO token, an important milestone for the lending protocol that launched back in June 2022.
Key aspects of the proposal include:
Transferability activation scheduled for November 21, 2024
Implementation of new wrapped MORPHO token with enhanced features
1:1 conversion ratio between legacy and wrapped tokens
Only wrapped MORPHO will be transferable
The transition includes deployment on both Ethereum and Base chains, with the wrapped token adding onchain vote tracking functionality and future cross-chain interoperability potential.
MORPHO token holders can now benefit from voting on key protocol decisions and changes.
Ethena
Ethena Protocol approves Fee Switch activation
A governance proposal, submitted by Wintermute, has been approved by the Ethena Risk Committee to establish a framework for protocol revenue allocation to sENA holders. The proposal aims to clarify the role of ENA (Ethena’s native token) within the protocol and its revenue structure.
The Ethena Foundation, as protocol stewards, have confirmed that 100% of protocol revenue will benefit the protocol, with no allocation to external entities.
The Ethena Risk Committee, an elected community group responsible for managing ecosystem risk, has approved the proposal. The Foundation and Committee will now collaborate to define fee switch parameters, with a stated deadline of November 30th.
Balancer
Balancer Maxis submit proposal introducing V3 upgrade
Balancer has unveiled its V3 protocol upgrade proposal, introducing significant enhancements to its AMM infrastructure and fee model.
Key features of the V3 upgrade include:
Simplified fee structure with 10% protocol fee on yield and 50% on swap fees
New Core Pool requirements: minimum 100M TVL and yield-bearing token composition
Enhanced composability through modular pool design
Improved capital efficiency via concentrated liquidity
The proposal outlines a phased deployment strategy:
Initial launch on Ethereum Mainnet and Gnosis Chain in Q4 2024
Subsequent rollout to additional networks based on community demand
Protocol revenue will be distributed to veBAL holders, with projections suggesting a 407% increase in LP income through optimized yield capture
Links
🚀 Launches, Deployments, Partnerships, and M&A
USDS is live on Solana
Lisk Mainnet is live
dYdX Unlimited is live
Introducing the Linea Association
Introducing the Spark Liquidity Layer
Introducing Common Protocol: Programmable Communities
ENS announces upcoming L2, Namechain
Aragon and MetaLeX team up to bring flexible legal and technical solutions to DAOs
Agora introduces multichain voting – powered by LayerZero
📑 Reads, Discussions, Insights, and Reports
karpatkey governance newsletter: October 2024
The Governance Staking Era
M^0 Overview by Steakhouse Financial
Why a16z’s uproar over the Lido DAO ruling is ‘overblown’
Report on Blockchain Governance Dynamics
DAO Governance Voting Tools: The Ultimate Guide (2024)
OurNetwork: DAOs
Measuring Solana’s Decentralization: Facts and Figures
🧗 Milestones & Updates
Polygon - Delegate Inventive Program Applications Now Open
Karpatkey: GnosisDAO Update / July-October 2024
zkSync approves Ignite Program, allocating 325M ZK tokens to building DeFi liquidity
🗞️ Everything Else
Morpho - Approve Review of Contributor Grants and Establish Formal Process
Lido - A Product Line Approach to Grow Lido’s Staking Ecosystem
Paraswap - Delegate Program Trial Period
Arbitrum - D.A.O. (Domain Allocator Offerings) Grant Program - Season 3
Arbitrum - Adopt a Delegate Code of Conduct & Formalize Operations
Jito - Decision Market on Whether to Adopt JTO in the TipRouter NCN
Livepeer - Introducing StableLab as GovWorks Chair
📺 Podcasts, Presentations, & Listens
Tracheopteryx - The Next Generation of Decentralized Governance at Devcon 7
Lefteris - DAOs Unmasked: The Hard Truths Behind the Hype at Devcon 7
noturhandle - Protocol Alignment: Governing like a Protocol at Devcon 7
Dennison - Liquid staking for DAOs at Devcon 7
Spencer Graham - Trust Zones: Why DAOs will be the best organizations ever created at Devcon 7
Proposal Tracker™️
💬 DISCUSSION | Compound - Renewing the Compound Governance Working Group (GWG)
Summary: This proposal seeks to renew the Compound Governance Working Group (GWG) for a 12-month term with a budget of $280,000 in COMP. Building on their successful trial period, which increased voting participation from 20% to 28% and achieved 100% proposal quorum, the GWG will expand their responsibilities to include DAO program funding, community payroll management, and MetaGov activities. The initiative plans to introduce new programs for delegate rewards and governance tooling development.
💬 DISCUSSION | Blur - Blur Fee Switch & veBLUR Tokenomics
Summary: This proposal introduces a comprehensive fee and tokenomics restructuring for the Blur NFT marketplace. The initiative establishes a 0.5% protocol fee while removing enforced creator royalties, and implements a dual-token system with $BLUR and $veBLUR. The proposal allocates 30M BLUR (1% of total supply) to Season 4 rewards and 90M BLUR (3%) for veBLUR voter incentives.
💬 DISCUSSION | Arbitrum - Arbitrum Onboarding V2: A Governance Bootcamp
Summary: This proposal requests $178,138 USD in ARB to fund a six-month Governance Bootcamp program starting January 2025. The initiative will select and train 20 Governance Analysts through a comprehensive curriculum, with the top 10 performers advancing to become Governance Fellows receiving monthly stipends of $1,500 USD in ARB. The program includes six weeks of workshops, practical exercises, and a matching system to connect qualified participants with Arbitrum Protocols.
From the Lab
Phuket Team Offsite
Before the craziness that was Devcon 7, the entire StableLab team traveled to Phuket, Thailand where we shared some much-needed face time and aligned ourselves on our mission of developing innovative and world-changing decentralized governance solutions.
Enjoy some photos below of our time together 🫶 Full video recap dropping soon 🔜!
StableLab @ Devcon
In case you didnt have the pleasure of witnessing our COO Doo claim hes skeptical of everything on every Devcon panel he joined in person, we’ve linked some of the recorded panels our team participated down below. ⬇️🎤
▶︎ Doo Wan Nam at Blockchain Oracle Summit - PANEL: DAOs: Navigating Governance Challenges with Oracles.
▶︎ Nneoma Kanu at [REDACTED] 2024 - PANEL: The Future of Self-Sovereignty: AI Agents, DAOs, and the User-Owned Internet
In Conversation w/ Gustav Arentoft
We sat down with our CEO and co-founder Gustav to get a sense of the direction of StableLab / Forse and what to expect from the team in 2025.
Our Voting
📆 Nov 15th → Nov 21st | 🗳️ Total Votes: 17
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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