Loopring desire to donate/distribute/auction 0.5% of our Reputation

[From Telegram chat]

Hey all. Team Loopring is excited by the beginning of the governance phase of the dxDAO. As many of you know, we’ve earned ~10.5% of the reputation. We take it seriously. Given 7 stakeholders control >50% of reputation, we’d like to begin by distributing a piece of ours, in order to make the DAO more widely held/governed.

We’d like to make our first proposal about how to distribute/donate 0.5% of the dxDAO reputation according to some plan decided by the dxDAO.

It’d be great to hear some suggestions as to how/to whom we should give this reputation. Please let us know any thoughts and have a discussion :pray:

A few ideas we have is to give it to the ‘storyteller’ allocation, auction it for ETH (with proceeds going to the dxDAO, not us), or give it to the bug bounty hunters of Loopring v3 as extra reward https://link.medium.com/cORGmx4mkY

// some discussion ensued in TG chat, mostly around how to prevent this distribution from winding up in wrong/more concentrated hands due to sybil attacks, etc.


There are several ways in how we could use your great proposal to improve the dxDAO. The question is how could we get the best out of the distribution of 0.5% of your Reputation.

Going through our telegram, it seems like the majority of people are in favour to give the reputation to someone completely new in the game. I agree with that.

Personally, I believe it would be wise to invite more people into the dxDAO who are working on DAOs itself, like https://github.com/dOrgTech/BC-DAO which are working on contracts which would enable us to create our own ERC-20 token for funding purpose.

Another important thing would be to improve the dutchX protocol in a variety of ways. I would love to see a tool where users could start an auction of a token which is currently not traded on the dutchX. This is currently not easily possible as users need to know how to talk to contracts directly. This would enable a lot more tokens to be traded on the dutchX and then we could actually talk about whitelisting tokens which would enable MGN distribution.(One requirement of the frontend would be that it is completely hosted on IPFS and accessable via ENS, so the DAO would have it first tool which is managed by us).

Thanks for the great proposal!


FIN - “…to make the DAO more widely held/governed.”

Is it a fair assumption that a wider distribution of REP will make better governance decisions? I don’t think so, because if that were true we could just give Rep to every Ethereum wallet.

Changing half a percent of Rep won’t have any affect on governance. Could it be used as a bargaining chip for money or favours? Maybe, but I don’t think we should go down that road as it could just muddy the governance we have and we don’t even know if what we have is any good or not. The prudent decision would be to lock down all REP by removing it from the rewards scheme. By trying to distribute it wider we may unknowingly be giving more to existing whales. We also will need to find a way to incentivize the time and effort governance requires. Getting more REP holders could make doing this more difficult and could screw up this experiment before we even start.

GERONIMO - You bring people to a project by paying them. You do not need to give away part ownership of your business to anyone whom you want to work with. Rather than trying to sell 0.5% of Rep, we should think about how to build a treasury and discuss what we want to do with it.

@rstef REP has value and can be used as a payment. This proposal is about someone giving a fraction of his ownership away so someone else can start contributing to the “business”.

By incentivising developers to create useful frontends for the dutchX protocol is probably the best way to generate revenue as the dutchX will grow in use.

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Good points. I agree that it seems most people (thus far) are in favour of giving it to a new, value-add person/group. dOrg is a great candidate. Besides the value-add, it also has the benefit of us knowing we are giving it to a specific person/group (although of course we don’t know if said person has multiple addresses holding lots of rep).

I also agree that DutchX interface would be very cool. Is it safe to say that Rep can indeed be a sort of payment for this work, provided the worker actually values the Rep and wants to be a stakeholder. Otherwise, we can simply auction this Rep for ETH or DAI, and have a more widely accepted money in the treasury. @rstef

Can someone (a DAOstack-er potentially), speak to how auctioning Rep for ETH would work? Must it be proposal based? Can we tokenize a representation of it and put it on the DutchX?

BTW, I think Loopring would be willing to do more of these distributions eventually if we get it ‘right’ this time around and it adds value :).

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