The priorities of DXgov so far:
- Replace Alchemy - governance interface no longer maintained by DAOstack
- Build guilds to spin out products
- Build governance 2.0
The team at DXgov has been focusing on guilds for SWAPR governance as well as major groundwork in preparation for governance 2.0. Since we already needed a new application to replace alchemy as well as an interface for guilds we took this opportunity to build an application which could handle both systems, saving us resources as well as turning into a product to bring revenue to DXdao. The product (
Project DAVI) is designed as a global governance app for all DXdao governance solutions with a focus on user experience and accessible autonomy.
So Wen Gov 2.0? I think it’s important not to understate the scale that the governance 2.0 transition is going to take. Completely changing the governance logic for our DAO which all of us depend on is no small task. You can read more about the reasons behind the Governance 2.0 development here
Up until now, we have rewritten schemes and permissions to be far simpler, more flexible and more secure. The next step which we have an audit scheduled for in September will complete all work prior to the actual voting machine logic change, a major step towards 2.0.
We will deploy a new version of DXdao in parallel alongside the existing one (rolling deployments goerli→Gnosis Chain→Arbitrum→Mainnet) so that we can begin a slow transition of funds and operations over. Once this process is complete and the new voting machine is developed and audited, we can upgrade the voting machine to begin using 2.0.
However, this does NOT mean the process is near complete. The transition over to the new architecture will take time, especially on mainnet. And the actual work to write the new voting machine will take not only developer resources but also a lot of oversight and detailed technical discussion and specification, not to mention actually switching to that governance model.
So TLDR, when 2.0? Likely early-mid 2023 is a realistic estimate given all the work above and assuming no major blockers.
Guilds are being built to deliver governance to DXdao’s spinout products such as Swapr, with this effort being prioritized due to the potential impact on product fee generation. Guilds could also be used to provide DXD holders a voice…
The interesting part comes when we consider the guild being given some reputation in DXdao. Since the guild has autonomy it can exercise this reputation and vote in DXdao proposals. This would allow DXD holders to sway votes and most importantly voice their opinions in public view of DXdao governance (visible as dxd.guilds.eth).
To be clear this is not a replacement for Governance 2.0 and that is still the goal, but this would be short term autonomy and a voice long before 2.0 arrives in production.
This idea of having a DXD guild vote in DXdao governance is not without its challenges.
Having reputation and technically being able to use it is not the same as having accessible autonomy, a key feature we have been building for Project DAVI.
Creating a proposal to vote on a proposal especially considering time constraints is no simple task. We have an aim of any DAO being able to vote in any other Project DAVI DAO. Without going into details, the application would mirror proposals and then put them on chain dynamically. The tricky part here is timing and it isn’t likely something that would work with short fast proposals, but long important proposals would be absolutely possible.
So some resources would be needed to develop a nice user experience for this in DAVI. This work WILL be done at some point, the question is when. Is there enough demand for this that we can take some time in DXgov to develop it before 2.0 and potentially add a small delay to the delivery of 2.0 or would the DXD community rather wait until 2.0 in 2023 to get any voice in governance?
I do think it is important to highlight that the resources for this feature are purely frontend, no contract work is needed. Whereas gov 2.0 is far more involved on the contract and coordination side of resources.
I would propose a number of something like 4% since this cap is in place for any given address in DXdao.
To protect from a small number of DXD holders controlling this 4% I would suggest a gradual increase with the goal of 4% REP in the guild once there is a decentralised distribution of members with a relatively high quorum.
This should help prevent instances of a couple of DXD holders having large amounts of REP or placing a low price on a large chunk of REP. This is of course something gov 2.0 has measures in place for but we have to manually prevent that here. We should even place some guidelines around slashing REP if guild voting power distribution started getting too centralised. And of course, this solution is still not perfect, e.g. 70-30 vote still disregards the 30% voting against winning action when viewed from DXdao governance perspective. This is something that longer-term gov 2.0 addresses.
Example of what this DXD guild voting behaviour would look like:
- DXD Guild is created, and it controls an avatar like its own sovereign DAO
- DXdao rewards the avatar with 4% rep through a contributor proposal (gradually)
- DXvote proposals showing up in DXD guild, and DXD holders voting
- When DXD guild concludes a vote on a proposal, it shows up in DXvote as a 4% Rep Yes or No vote on the DXvote proposal
While DXgov’s primary goal is to deliver best in class governance to DXdao and its products, there is also potential that DXgov’s work will generate additional traction and revenue in the future. Balancing this has been tough but for the most part, they are symbiotic, helping each other grow. By solving DXdao’s problems with which we have first hand experience, we believe DXgov tools will become some of the best “real DAO” solutions in the space.
It’s over to you now, we can see the value in this from both a DXD holder and Project DAVI product perspective but if it’s decided that having a 4% say in proposals is not going to be exercised then we can postpone this feature of DAVI and the DXD guild as a whole. Please let us know what you think.