Thanks to @mZeroNine for co-authoring this post
As the mStable ecosystem grows, so does the need to decentralise it further. The previous post outlined a new and improved structure to put governance into the hand of the community first. A second step to add further decentralisation in a gradual matter is to allow prominent Metanauts that are outside of the core contributor team to participate in the governing bodies of mStable, namely the ProtocolDAO and TreasuryDAO (previously mStableDAO).
Since mStable’s inception, the roles of the signers in both DAOs have been filled with either core contributors or known members of the industry. This was done to mitigate the concentration of risk and to distribute power. Now with an established base of Metanauts around mStable, we should revisit these positions and allow more community participation and transparency.
The ProtocolDAO is a Gnosis Safe multi-sig, operating in a 4/8 threshold manner. The current allocation of signing bodies (according to this article) consists of is the following :
- 4 Core Developers
- 1 Core Contributor
- 1 Co-founder
- 2 Industry professionals
As the ProtocolDAO deals with core smart contracts and protocol functionality, it inherently requires knowledge about the underlying system and protocol. Therefore it is vital to keep the majority of the signer seats within the hands of core developers since they build and know the protocol the best. Additionally, a core contributor and a co-founder allow the ProtocolDAO to align within the wider strategy of mStable.
However, the seats of the 2 industry professionals can be reallocated to community members. The rationale being that community members are more involved with the protocol, stay up to date with governance more readily and have a greater interest in bringing the protocol to success.
To simplify the breakdown and to allocate the new seats, here is the proposed new breakdown:
- 6 Core Contributors
- 2 Community members
The TreasuryDAO is a Gnosis Safe multi-sig operating in a 4/6 threshold manner. The previous allocation of signer seats (according to this article) is the following:
- 2 Core Contributors
- 4 Independent signers
All remaining equal, the additional signer seat will be obtained via an expansion of the multisig. The threshold can stay the same and so we end up with a 4/7 multi-sig.
- 2 Core Contributors
- 4 Independent signers
- 1 Community member
The TreasuryDAO multisig is a key target for governance attacks, therefore we believe it is vital to keep this multi-sig as diversified as it is now and even to increase it with this additional signer seat.
The community seats in both DAOs are to be reallocated. We would like to suggest having an election for both DAOs. A community member can be nominated or nominate themselves. For the ProtocolDAO 2 signer seats will be voted upon, while in the TreasuryDAO 1 signer seat will be made available to vote upon. The 2 members with the highest votes in the ProtocolDAO will become signers for it, while the member with the highest votes in the TreasuryDAO will join the signers there.
Each term will have a specific length after which the community member seats will be reallocated. The other signer seat allocation will be appointed by the core contributors and/or the signers of the DAOs.
The protocol is still evolving and hasn’t reached the final architecture yet. Therefore we feel that both DAOs should be not changed too drastically. Having core contributors in the DAOs is important to ensure that expertise and knowledge of the protocol guide decisions.
Being a signer is an active role, it does require some activity and knowledge about mStable and the proposals that are up for execution.
Additional requirements are the following:
- Availability for signing on a regular basis (ad-hoc signing might be required)
- Monthly signer calls
- Prior experience with GnosisSafe multi-sig is helpful
- Support with additional tasks (if signer chooses to extend participation)
Additionally, for the ProtocolDAO a bit more technical background would definitely help but is not required. For the TreasuryDAO some expertise for responsible treasury management/processes is preferred.
As previously outlined, the community signer position will come with responsibilities and duties. Therefore we should discuss a signer stipend to compensate the elected community signers for their time.
This is the next step of decentralising the DAOs of mStable further. An early article outlined the goal that mStable is to be “controlled not by a single entity but by a global community of Meta Governors.” With the closer inclusion of the community within the signer group, we believe this is the right direction forward.
- Should there be any rule that one member of the community cannot occupy both DAOs?
- How much in terms of the compensation would you deem to be appropriate? Not a full-time endeavour but could require ad-hoc singing, syncing and monthly signer calls.
- How long should be the term length for the community signers?
- Keen to hear overall thoughts and suggestions on this process
dimsome & mZeroNine
The official Cat Herders