👨‍🔬 Governance Lab #099

Lab Report #099 - Scroll's Ecosystem Growth Council, Compound Foundation Formation, ZK Gateway Settlement Layer, StablePod w/ Val & Wormhole (LlamaRisk), and more

May 22, 2025

gm frens 👋

Welcome back to the Governance Lab, your weekly source for all things StableLab, DeFi, and DAO Governance. As always, we've filtered through the noise to bring you the governance signals (and drama) that matter.

At a Glance 👀
📜 Scroll DAO proposes Ecosystem Growth Council with 2M SCR budget to drive ecosystem initiatives
🏦 Compound introduces Foundation proposal with $9M budget to revitalize protocol growth
🔄 Matter Labs unveils ZIP-10 to activate ZK Gateway as a settlement layer for the Elastic Network
🎙️ New StablePod w/ Val & Wormhole (Llama Risk)

Let’s dive in 🏊

Scroll Governance

Scroll DAO proposes Ecosystem Growth Council with 2M SCR budget

Scroll DAO has proposed establishing an Ecosystem Growth Council (EGC) with a 2M SCR budget to drive ecosystem development. The 7-member council (2 Foundation members, 5 community representatives) would manage growth initiatives with a structured voting system requiring 4/7 approval for smaller allocations and 6/7 for larger ones.
The proposal includes a delegate veto mechanism with a 3-day window and targets onboarding 20 aligned Scroll founders by August 2025. The council structure aims to solve previous challenges where ecosystem growth proposals lacked sufficient detail to gain delegate confidence.

Compound Governance

Compound DAO considers Foundation formation with $9M budget

Compound DAO is evaluating a proposal to establish a non-profit Foundation with a $9M budget over 18 months to revitalize the pioneering lending protocol. The Foundation would provide strategic leadership and operational execution while the DAO maintains high-level governance authority.
Aaron Schnarch (former Anchorage Digital COO and Coinbase Custody CEO) has been proposed as Executive Director to lead a lean team focused on protocol growth, governance participation, and ecosystem engagement.
Structured as a US-based 501(c)(4) entity, the Foundation would follow successful models from peer protocols, with implementation planned for July 2025 following community approval. The proposal aims to strengthen Compound's competitive position through improved product strategy, partnerships, and external representation.

ZKsync Governance

Matter Labs introduces ZIP-10 to activate ZK Gateway as settlement layer

Matter Labs has proposed ZIP-10 to establish ZK Gateway as an optional settlement layer for the Elastic Network. This enhancement would improve batch settlement efficiency across ZK Chains while reducing costs for users, particularly benefiting chains not using Ethereum for data availability.
The ZK Gateway operates as a permanent rollup using the ZK token and maintains ZKsync Era's security model. To facilitate future upgrades, contract deployment is currently restricted to a whitelist. The gateway will always use Ethereum for data availability regardless of admin actions.
Implementation involves registering ZK Gateway via Bridgehub, whitelisting a ChainTypeManager, and configuring systems for future migrations. Matter Labs will initially serve as the sole sequencer before transitioning to decentralized operation. The proposal notes all code has been previously audited with no backward compatibility concerns.

Proposal Tracker™️

💬 DISCUSSION | Paladin DAO - Restructuring Paladin Tokenomics

Summary: This proposal introduces Paladin's new tokenomics centered around revenue sharing and a modular Safety Module. After identifying inefficiencies in the Vote Flywheel system and recognizing Rings as the DAO's primary revenue engine, the team proposes a holistic redesign with six key components: 1) Revenue sharing where Rings revenue flows to token holders; 2) A 2.5% Safety Buffer for scUSD over-collateralization, with an additional 7.5% TREVEE reserve; 3) Staking with slashing protection allowing up to 30% token slashing during shortfall events; 4) Mandatory delegation for revenue share recipients; 5) A "Reservoir" allocation of 10% of token supply with 0.5% weekly emissions; and 6) Quest revenue buybacks via a fork of Euler Fee Flow.

💬 DISCUSSION | Compound DAO - RFP Oracle Extractable Value (OEV) Solution for Compound Protocol

Summary: This RFP seeks qualified vendors to provide Oracle Extractable Value (OEV) solutions that enable Compound to recapture value lost during oracle-based liquidation events. Over the past two years, Compound has paid more than $13M in liquidation incentives across v3 markets, with a large portion going to external validators and searchers rather than back to the protocol. The RFP runs from May 21 to June 4, 2024, with selected solutions implemented until Q1 2026.

💬 DISCUSSION | Uniswap DAO - Accountability Committee Elections S4

Summary: This proposal defines the election framework for Season 4 of the Uniswap Accountability Committee (UAC), following a successful onchain renewal. Two new members will be elected from a slate of individual applicants. The election emphasizes fair distribution of votes: no candidate may allocate more than 50% of their voting power to themselves, and must assign an equal or greater amount to another candidate (e.g., 25% self-vote = 25% minimum to another). Applicants include Sov, Kevin Nielsen, Takeshi Ohishi, Doo Wan Nam, and others.

From the Lab

Podcast - LlamaRisk: Developing the Risk Toolkit for DeFi

On the latest StablePod episode, we're joined by Val & Wormhole of LlamaRisk. We discuss LlamaRisk's evolution from a research-focused firm to a practical risk management entity, the challenges of integrating RWAs into the DeFi ecosystem, their partnerships with Aave and Curve, and their vision for elevating industry standards through transparency and accountability in DeFi.

▶︎ 📺 Watch on YouTube
▶︎ 🎧 Listen on Spotify & Apple

Announcing Forse for Swell’s Wavedrop Rewards Program

We're excited to announce that Forse is now powering analytics for Swell's Wavedrop Rewards Program!

Our analytics infrastructure will provide comprehensive insights into participant engagement, reward distribution efficiency, and overall program performance across the Swell ecosystem.

Stay tuned for more details and updates in the coming weeks.

▶︎ READ the full announcement