Governance Discussion - July 8, 2020

Meeting date: Wednesday, July 8, 2020
CEST (Berlin): 5:00pm
Buenos Aires: 12:00pm
New York: 11:00am
Houston: 10:00am
Denver: 9:00am
San Francisco: 8:00am
Meeting link:


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Governance discussion notes July 8, 2020

  • Consensus Working Group

    • Trying to lay out a proposal for a team to work on governance issues
    • Augusto
      • Not a “whitepaper”, bc this is an organization. “Manifesto” is more appropriate
      • Already a lot of governance, but no one knows about it. Need better communication
    • Ingamar
    • Powers
      • A lot of moving parts and it’s tough to “speak for the organization”, so these things move slowly
    • Next steps:
      • Continue to iterate on Consensus Working Group proposal notes:
      • Wait for Worker Compensation Guidelines for proposal update
      • Move away from “whitepaper” towards “manifesto”
      • Also include Governance of other projects (DMG, bZx, etc)
      • Communicate existing governance practices better
  • bZx DAO and potential allocation to DXdao (bZx DAO bootstrapping program)

    • Kyle Kistner (co-founder bZx)
      • Looking to get informed stakeholders to help govern the bZx DAO and looking to allocate $10k to DXdao of bZx new governance token
      • DAO design is like a “liberal democracy” where token holders vote on representatives and an executive. Governance determines ongoing parameters, margin requirements, etc
      • Perhaps the DXdao could be a representative
    • Questions:
      • John - is this a custom stack DAO structure? A: Yes, looked at Aragon and others, but building custom solution
      • Sky - how important is distribution vs expertise? A: Distribution is important but looking for informed stakeholders
      • Corkus - Time lock on voting? A: Not a huge constraint
    • Next steps
      • Explore how DXdao could signal support
      • Determine development work needed for an integration
  • Worker Compensation Guidelines & REP distribution

    • Background
    • John
      • Worker Compensation Guidelines created a structure for compensation but it doesn’t account for those that have maxed out REP, so there needs to be a way to convert REP bonuses to other compensation, and thus need a way to value REP
      • REP is another tool to reward and incentivize workers while the treasury is still small
    • Powers
      • Concerned about how an official “financial calculation” for REP could have on long term separation of voting and economic power. REP holders may value REP but DXdao should aim for “separation of church and state” for REP and DXD
      • Incentivizing workers with DXD better aligns interest. REP’s goal -> decentralization to responsible parties. DXD’s goal -> number go up. If a contributor receives DXD as compensation, he/she is automatically incentivized to want the number to go up and build products, services and processes that help that
    • Jefgenowitsch
      • “Working” for the DXdao is different than “contributing”
    • Augusto & Corkus (may have mixed these)
      • REP could be seen as a bonus only and separate from regular compensation and use different criteria for distributing REP than regular compensation.
      • Removing REP from compensation guidelines would work
    • John
      • Relying on DXD for compensation introduces downward pressure on DXD holders
      • Further discussion on technical elements of DXD in DXdao and issuance
    • Other great discussion points from Yuri, Ingamar, Frootloopz and others
    • Next steps
      • Create new Worker Compensation Guidelines that do not account for REP (Augusto?)
      • Come up with REP distribution guidelines that are not based on compensation (Consensus Working Group?)
      • Budget planning for compensation and DXD issuance
      • REP inflation number
  • Governing DMM

    • Background:

    • Sky

      • There are a lot of DMG tokens in the DXdao without much of a plan on what to do with them. How should DXdao think about governing DMM given it will be one of the largest voters?
      • DXdao governance should promote the use of DXdao products and other synergies with DXdao community
    • John

      • ETH-DMG is highest volume on Uniswap - it would have been great to have that liquidity pool on DXswap
    • Sky

      • There is also a proposal to distribute a portion of DMG tokens to DXD holders
    • General consensus:

      • It’s important that DXdao is a responsible governing party for DMM as that was the original agreement.

      • Distributing DMG to DXD holders is interesting but

        1. Technically infeasible (Augusto), bc revenue is designed to be sent to the curve to support DXD price
        2. Could hurt the price of DMG if a bunch of tokens are sold (Yuri)
    • Next steps:

    • Explore how DXdao can help DMM market grow and provide good governance (Sky?)

Apologies if I missed anything or misrepresented anything. Feel free to correct or add more below.


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