This post is about reasons why DXD token should have the governance rights, and how we can compensate REP holders.
The DXD token is suppose to allow holders have an economic claim to the DXdao´s revenue, but currently DXD holders lack even simple governance power to decide what to do with the treasury -
where as reputation (rep) holders do, but rep is untradable, and add gen to the mix, we have an overly complex system.
Whats more, rep was distributed in 2019 in a single staking snapshot which means since then, new comers would not be able to earn rep. You can’t grow the DAO ecosystem if new members don’t have any influence and your voting power is tied to what you staked in 2019, and you can distribute rep currently because rep can not be traded or moved. Thus, we must allow DXD holders to have a say in this, here is an early proposal where REP holders give up 75% of it for DXD, and in return, 10% fresh active supply to be distributed to REP holders, to compensate for the governance power lost.
Currently the active circulating supply of DXD is: 31,679 (also this post will serve as a snap shot)
thus, 10% of new active supply to be distributed to REP holders are 3,167.9 DXD tokens (currently worth 725,000$).
Early proposal / TDLR:
Governance system is overly complex and discourage new players entering
REP basically unavailable for newcomers, ecosystem’s governance is tied to a 2019 REP snapshot
DXD holders should have governance control
Transfer REP voting power for DXD holders
DXD owns 75% and REP owns 25% of voting power
REP holders gets 10% supply of DXD in compensation (~725,000$ USD)
Compensating existing Rep holders sounds pretty good if DXdao went down the route. I am personally worried about big money buying in to influence governance which is why I think Rep is necessary but I agree that there’s too much friction for beginners or any governance at all.
I floated the idea of making Rep farmable here in an eventual liquidity mining program (In DXD pools). This essentially makes rep highly achievable with passive work and existing heuristics in the Defi while at the same time prevents wild fluctuations in governance powers. Keen to hear your thoughts @CLCL
Farming REP is cool too, but REP being completely illiquid is a problem, so I think sharing some of the power to both DXD and REP, and give REP users some extra DXD, seems like the most balanced way for now.
As for whales:
I think whales can easily out-farm smaller users, whales also control a lot of REP for those who staked with a lot of $ back in 2019, so it has been like this forever.
Also, if people don’t sell their DXD, whales don’t really have anywhere to buy from, unless they want to really move the price up significantly to incentivize some people to sell.
Good point on whale farming and I agree on Rep illiquidity. If DXD is to hold voting power then I think its best to go all in. Having both Rep and DXD with different weights may be a bit too confusing.
I still like Rep for what it is but governance overall has to become easier and accessible.
I agree, 1 system is just simpler and better, and easier to get new people to understand and join. though then we should compensate rep holders maybe more % of active supply, maybe 15%, which would be worth over 1M usd, or even 20%, I want a rep whale to step up here and give some opinions.