Do SOMETHING...lead, follow or get out of the way....Ted Turner (founder of CNN)
The Problem with Voting in DAOs - The Defiant - DeFi News
The first major blockchain conference I attended in person was this July at EthCC 4 in Paris. It was an amazing experience. I met so many people and learned about so many projects and gathered perspectives on where Ethereum is headed. But there was one common theme that concerned me -- this notion that DAOs = Voting.
Working Groups are the Scaffolding: A Foundational Approach to S...
There has been a cascade of talent flowing into DeFi in the last year. The DAO structure provides community members and contributors alike with greater autonomy and the freedom to work without the hindrance many of us have experienced in traditional workplaces that depend on cubicle culture and a panopticon-like approach to supervision.
PowerPool DAO Organisation - Delegation to Teams (sub-DAOs)
Migration to Balancer v2, the launch of xCVP staking and the next version of the website supporting staking/redemption are now complete. The stage is now set to expand the PowerUniverse family dramatically with many new baskets and key partners, to initiate dashboard fundamentals performance tracking of tokens within pools, add insurance options, implement Treasury Management and reporting, define yield optimization/hedging strategies of each new pool and invest in effective marketing, especially to institutional investors. Marketing is a particular challenge for PowerPool because there are two investor market segments with very distinct profiles:
- Average investors looking to achieve broad diversification with BOTH intrisic and extrinsic yield WITH tax-efficient automated rewards harvesting at minimum gas; and
- Institutions/family offices looking to achieve broad diversification WITH hedging options and automated rewards at minimal cost and complexity in client reporting and meta-governance management.
Converting an on-chain protocol like PowerIndex/Agent into a leading asset management organisation addressing both the above market segments will require adding a sufficient number of qualified people able to wield real resources from an approved budget. Without an approved operating budget sufficient to address these challenges, PowerPool will soon be overtaken by much larger (in terms of people) and better-funded DAOs, despite having a superior platform and technology. DeFi technology is now proven, and the competition has shifted from protocols to organisations. The time to attract and retain the best people is NOW.
The new PowerPool governance system gradually shifts daily decision-making powers from the multi-signature wallet and a monolithic, gas-intensive on-chain DAO towards SparkTeams, organically-formed autonomous contributor teams with names, team leaders, and specific remits:
- SparkDev (core protocol development, security & audits, operations);
- SparkFin (treasury management, NAV/P&L reporting);
- SparkData (token-tracking, data feeds, analytics & visualization);
- SparkDesign (web presence, graphics for social media);
- SparkPeople (guilds/skills tracking, bounty management, incentivized task recruiting);
- SparkProd (new product development, testing & launch);
- SparkDAO (Wiki, Forum and Governance content & moderation);
- SparkGrow (marketing and partnerships - pooled investment vehicles & xCVP staking);
- SparkLegal (external legal advisor)
SparkTeams are divided by functions first, because this is best for incubating/launching numerous new products. Each SparkTeam aligns with at least one aligned Core Team/Management Board Member.
While most of the decision-making powers previously held by the Multisig move to SparkTeams, the execution power stays with the Multisig pending future proposals. The Multisig is tasked with executing the decisions issued by SparkTeams within their domains of action and with ‘Veto Power’ should they feel a decision needs further review. The multi-signature wallet will still be the entity which executes proposed changes to the protocol and will retain veto power.
Team-based, more modular governance will allow the protocol to adapt quickly despite its increasing size. Not everyone feels qualified to vote on every type of proposal. This is one reason why global DAO voting participation rates can be so low. SubDAO delegation tooling, such as that provided by Orca Protocol, SquadDAO and others extends the DAO organization down to more specialised team discussions and voting. The idea is to push as much decision-making as possible down into the SparkTeams, surfacing technically-sound sub-consensus options on the Forum and as formal Proposals to the DAO if required by the rules of the DAO. The philosophic background for this type of organisational structure is holacracy.
As the number of meta-governance votes increases and as more meta-governance capabilities come online, there is an expectation that vote execution will be further decentralized to some kind of sub-team within the PowerPool DAO. This may ultimately take the form of a meta-governance council executing delegated meta-governance votes, protocol ambassadors executing delegated meta-governance votes for their protocols, or some other sort of structure.
Benchmarking: DeFi DAO Governance 2.0
External Tasks & Bounties for Deliverables
DAO ‘Guilds’ are lists of DAO members with certain specialist skill sets available to the DAO. Under the guidance of SparkTeam Leaders, creating Guilds allows DAO members to group together and offer the community direct access to a pool of certain skills.
Guild members can be summoned by the DAO to address tasks via hosted Bounty Boards, such as this example using Notion:
Task bounties should be seeded with some amount of compensation, denominated in CVP. This money can come from initiatives funded by the Ecosystem Fund or possibly partners like Balancer or even third parties seeding with their personal funds. These bounties can be claimed by anyone, even people without any CVP (providing a way to earn CVP). When a task is delivered, Bounty Comptrollers such as SparkPeople or SparkDAO must then approve/deny the claim. In this way, Guild members can build up a record of their previous deliverables and bounty Comptrollers can better target tasks to various Guild members.
Other protocols are referring interesting proposals to contractors to generate in-depth analyses for further consideration by the DAO. For example, Nexus Mutual has been granting rewards of 100 WNXM = ~400 CVP for in-depth analysis documents. See their Nexus Discord offer here; and typical Nexus Project analysis deliverable here: Nexus Analysis of Thorchain.
PowerPool should consider offering bounties to qualified collaborative teams, for example, Financial Voting (they do habe their own FTV token, but I am not convinced it is a good investment).
PowerPool Ecosystem Grants
The Ecosystem Fund was proposed and accepted by the community to reward PowerPool contributors.
PowerPool Ambassadors Program
The PowerPool Ambassador program is intended to appoint certain members of the DAO with large followings in specific regional/linguistic markets to represent PowerPool marketing and communications in their own words.
PowerPool Ambassador Program
Most major projects have a way for fans to become more deeply involved and to coordinate their efforts in spreading the word. A common complaint of PowerPool has been a lack of marketing, and while a DeFi project may not have the capital to spend on a traditional marketing campaign, what we can do is empower our community as much as possible.