DXdao governance relies on holographic consensus that uses DAOstack’s native token GEN as a form of quorum management. Its designed to incentivize users to stake on proposals that they think should be fast-tracked and voted on by REP holders. Once a proposal has a GEN stake above a minimum threshold for 24 hours, it becomes ‘boosted’ and can pass with a simple majority. This is used by DXdao on mainnet as well as xDXdao on xDai (using xGEN).
The system relies on a downstake bounty of GEN (or xGEN) supplied by DXdao to incentivize stakers in the system. If a proposal passes that a staker boosted, they receive their initial stake as well as a the downstake from DXdao. This GEN came from DXdao’s launch, when some REP was auctioned off for GEN.
This initial supply is running low. On mainnet, there is only 39,000 GEN in the treasury but 10k of that is set to be sent to Sky for a member balancer. On xDai there is only 5k xGEN and that doesn’t account for the ~25k of GEN that DXdao is “in debt” to community stakeholders who have deposited xGEN (disclosure: Caney Fork is one of them).
The long-term plan is to move towards DXD for staking, but that seems several months off, at least for mainnet and xDai, so the question is what to do about the low GEN balance and the DAO debt?
The answer is for DXdao to acquire more GEN (and xGEN), likely at least 50k additional in each mainnet and xDai base. There are two ways to do this:
Using the GP Relayer or the multi-sig to purchase GEN - the relayer would be very difficult bc there’s no GEN in GP Relayer v1 on mainnet or xDai. We would need to set a high premium to ensure GEN on the order books. The multisig would not be able to purchase that much GEN without high slippage.
Member balancer where stakeholders can deposit GEN or xGEN and request WETH or Dai in return
#2 seems to be the most logical and easiest to enact. We’d need to come up with a price conversion for the member balancer requests. Would a 1% premium be enough?
Anyone in the community could participate but it would be great if some DXdao community members that have large stacks of GEN participated so that DXdao and xDXdao could easily reach the 50k in GEN deposits?
I think a signal proposal would need:
- Who can participate, presumably everyone, maybe just REP holders?
- The price premium for GEN and price source (1% seems fine)
- A maximum amount of GEN that can be deposited with a WETH/Dai return. (50k GEN seems fine)