Despite the regulatory uncertainty surrounding governance tokens and other digital assets, governance discussions have continued. Here are three forum discussions I recommend you follow.
Aave GHO Facilitator Application
This proposal outlines the process for selecting and onboarding facilitators for GHO minting. Prospective GHO facilitators will submit an application to the Aave DAO in their governance forum. The DAO will then assess the application and conduct an off-chain vote on whether or not to onboard the facilitator. If the proposal passes an off-chain vote, there is another 7-day discussion period for more technical discussions. After this second discussion, the onboarding application moves to an on-chain vote – which onboards the facilitator if passed.
Protocol governance processes are not the most scintillating content for readers. But Aave having an in-depth vetting process for facilitators is vital for the success of GHO, and GHO is a hugely important catalyst for Aave. Facilitators will bring counterparty risk to the GHO user’s hold and could also bring significant unknown risks without adequate disclosures. Facilitators will also be able to mint GHO with real-world assets, which heightens the level of risk and adds additional operational overhead – for example, how do you liquidate real-world collateral. Having a solid grasp of the proposal process can help potential GHO users understand the risks and benefits of the token. The process is still being discussed by Aave contributors, but we recommend that readers follow the discussion.
This proposal from goron_dan and a non-profit called the RAI Foundation suggests that Reflexer should explore liquid staking for RAIs ETH collateral. As readers know, Reflexer is a protocol that mints the stablecoin RAI. RAI is much like DAI but solely backed by ETH and floats around $3 instead of $1. Reflexer has also pioneered a governance-minimized model, meaning that large parts of the protocol are set in stone and cannot be changed.
Specifically, the proposal recommends that Reflexer offer liquid staking for their ETH collateral through the Foundation’s RAI booster. The yield earned from staked ETH would be sent to the DAO, which the DAO could use to incentivize RAI liquidity throughout the ecosystem. That being said, this proposal is from an outside source, and the RAI Foundation is not associated with the team – so this proposal will probably require more discussion and debate before anything goes live.
The Saga at Rook (KeeperDAO) Continues
As I mentioned in a prior feed post, the community at Rook/KeeperDAO is frustrated with the team’s actions and is working on ways to dissolve the DAO. But, as the community has discovered, token holders have little recourse to enforce measures on teams with only snapshot governance. Not only that, but there has also been some internal strife regarding lawsuits, alleged heists, and a dead founder. The frustration and strife has led to the community member posting this most recent proposal to deploy a Rage Quit mechanism for their Incubator subDAO.
The Incubator subDAO was proposed to give existing ROOK token holders control over a portion of Rook’s $44M treasury, and as such, the team proposed to seed it with $10M from the treasury funds. However, some community members dislike this arrangement and have suggested that the Incubator also require a Rage Quit option. The Rage Quit option would allow token holders to burn their ROOK to claim a portion of the Incubator treasury, although this still leaves $33M outstanding.
The situation at Rook/KeeperDAO seems dire, and at least me as an outside observer, insurmountable. The situation there serves as a cautionary warning to all token holders, and a great advertisement for Rage Quits.