👨‍🔬 Governance Lab #116

Lab Report #116 - Aave SP Compensation Reform, Arbitrum DIP 2.0, and more

Oct 16, 2025

gm frens 👋

Welcome back to the Governance Lab, your weekly source for all things StableLab, DeFi, and DAO Governance.

At a Glance 👀
⬛ Aave DAO considers KPI-linked AAVE vesting for core service providers
⬛ Arbitrum DAO proposes DIP 2.0

Let’s dive in 🏊

Aave DAO

Aave DAO proposes KPI-linked AAVE vesting for service providers ahead of V4

ACI has proposed an ARFC to reset compensation across Aave’s core service providers ahead of V4. Total annual budgets remain unchanged, but each provider would receive $250k in AAVE at execution using a 90-day TWAP and $750k in AAVE vested linearly over 12 months. Vesting depends on meeting clearly defined KPIs, with success set at 85 percent of deliverables completed on time.

Covered providers are ACI, TokenLogic, LlamaRisk, and Chaos Labs, each with role-specific KPIs. Examples include monthly buyback execution and timely Finance AIP payloads for TokenLogic, and ARFC risk reviews delivered within the defined windows for LlamaRisk and Chaos Labs. BGD Labs is not included and will pursue its own track. The reform is positioned as a one-year, unified structure that aligns work with V4 milestones and defers any revenue-aligned components until after V4 rollout.

Initial feedback on the thread is supportive. LlamaRisk cites the reset as providing runway and clarity during the V3 to V4 overlap, and TokenLogic backs KPI-linked vesting as a way to improve accountability without changing overall pay balance. Next steps are forum feedback, a Snapshot, and if approved, an AIP to implement the new streams and monthly KPI monitoring.

Arbitrum DAO

Arbitrum DAO proposes DIP 2.0 expanding delegate rewards and contributor incentives

Arbitrum proposes “DIP 2.0,” expanding delegate rewards into a DAO-wide framework with three tracks: per-proposal payments for delegates who vote and post public rationales; a peer-recognition program for notable contributors; and time-boxed “Nudge Seasons” that pay for specific pro-governance actions. Participation requires joining a new vouch-gated Arbitrum Peer Assembly; the program excludes non-human participation and vote-selling platforms. Funding comes from ~7M ARB remaining in the prior DIP multisig.

Delegate rewards are set per proposal type with caps and distribution rules announced quarterly (illustrative budgets: 10k ARB for constitutional votes, 8k ARB for funding/off-chain decisions, 3k ARB for non-binding temps; caps 700/500/300 ARB respectively). The peer-recognition track pays $500 in ARB to each of the top N monthly recommendations (N=5 by default), with rare “outstanding” awards up to $2,500; recommendations are ranked by a program manager with OpCo oversight. Nudge Seasons define one KPI and publish a short post-mortem on whether behavior moved. A $200 minimum accrual is required before payouts, which expire after three months if the threshold isn’t met.

Bootstrapping the Peer Assembly starts with the top eight earners from the previous program (e.g., L2BEAT, Reverie, GFXLabs, Gauntlet) who must themselves secure three vouches within two months and cannot vouch for each other. Process-wise, the team has scheduled governance calls on October 15, 22, and 29; an off-chain vote is targeted for October 23 with a tentative program start on November 1, 2025, and semiannual transparency reports thereafter. Debate is likely to focus on how vouching impacts access for smaller delegates and on transparency around program-manager discretion.

Proposal Tracker™️

⚡ VOTING UNDERWAY | ZK Nation - ZKnomics Token Staking

This proposal pilots ZK token staking across two seasons using Tally’s Staker contracts, funded by a capped minter totaling 37.5M ZK with up to 10% rewards during the trial. Eligibility ties to governance participation by requiring delegation to an active delegate and a recent voting history. Authors frame the pilot as groundwork for staking infrastructure that can later align with decentralized sequencing. Voting is opening around Oct 15 and community posts indicate the item has moved on-chain.

💬 DISCUSSION | NEAR House of Stake - veNEAR Holder Rewards Program

This RFC proposes a 90-day rewards pilot for veNEAR with a budget of 280,682 NEAR targeting competitive yields of roughly 4.2–4.5 percent. The goal is to migrate 60M NEAR into House of Stake governance while HSP-002 lowers inflation and maintains validator decentralization. The draft lays out monthly migration targets and an efficiency ratio, with any continuation requiring a separate vote. Debate is expected on cost effectiveness and coordination with HSP-002 timelines.

💬 DISCUSSION | Balancer DAO - Transitioning Onchain Operations of the Balancer DAO to Balancer Onchain Limited

This proposal formalizes a shift of fee collection, rewards, and payload execution to a new BVI entity, Balancer Onchain Limited, and sets a standard Safe structure with an Operator Safe managed by MAXYZ. It creates a Treasury Council for oversight, deprecates the Ecosystem Council, and expands the $1.25M self-insurance fund to cover core entities and service providers. The document details signer sets, thresholds, and a phased migration with verification and emergency procedures. Review is focusing on accountability, council authorities, and operational clarity before any on-chain actions.

From the Lab

StableLab Partners with Stake Capital to Power a Polygon Validator

We’ve partnered with Stake Capital Group to operate a Polygon validator, deepening our multi-year work with Polygon and helping secure core network infrastructure.

“We’ve worked with Polygon for years and have partnered closely with Stake Capital. A joint validator is the right next step: dependable infrastructure and a lasting commitment to the Polygon network.” — Gustav Arentoft, CEO of StableLab

▶︎ Read our full announcement