For a long time, DODO has used Snapshot for our DIP voting, but there were two issues that remained unsolved:
- Multi-chain voting rights
- Low voter turnout
Multi-chain Voting Rights
DODO has achieved excellent results on multiple chains. Detailed data can be viewed here: DODO stats on each chain
In principle, DODO tokens held on any chain give the holder the same voting power with no difference between different chains. In fact, only the DODO tokens on Ethereum have any governance power at all - there is no voting power provided by DODO tokens on all the other chains, which is against the original intention of our multi-chain strategy.
We therefore propose to move away from using Snapshot, and develop our own voting system instead.
The new system will be similar to snapshot, and will use off-chain signature collection to count votes. The number of DODO tokens on each chain can be counted in the vote with only one signature. This system will also publish all signatures to AR (a decentralized storage system) for everyone to verify.
With regards to the vDODO reward emission, we want to have the same yield rate for vDODO tokens on different chains, which is hard to do since the chains can’t communicate with each other. We propose to maintain the current emission of 80,000 DODO tokens per day (29.2 million per year), calculating a fixed yield rate once every to-be-determined period of time, based on the average total lock-in on all chains, and keeping the initial fixed rate consistent with the old vDODO system to ensure a smooth migration. If we were to migrate now, the fixed yield rate would be approximately 55% annualized, or 0.15% daily.
For example, let’s say that there were 60 million DODO staked initially, so the initial fixed rate would be 55%. In the second month, the staked DODO amount grows to 100 million DODO, we recalculate the fixed rate to 29.2%.
With regards to the vDODO exit fee, we propose to have a variable fee depends on the yield rate - i.e. If the yield rate drops, the exit fee will decrease accordingly.
If this DIP passes, the parameters of new vDODO emission model will be voted on in another proposal.
Regarding centralization, if we want to support multiple chains, we are bound to have centralized information transfer. We will make the process as open and transparent as possible - for example, we’ll let Chainlink supply the total amount staked on each chain to determine the yield rate.
Low Voter Turnout
Creating value through governance requires not only the right to vote on DIPs, but also an investment of time and thoughtful research from each voter. Many cryptocurrency users have the right to vote but lack the time and energy to meaningfully participate in governance. This has resulted in a long period of inactive DODO governance, with a large number of tokens not being used efficiently.
The main value of DODO tokens comes from governance. Governance controls the release of DODO tokens, how the protocol revenue is used, and the use of deposits already in the treasury.
If we can create enough liquidity for DODO tokens governance, we can solve this problem very well. Under the new governance framework, DODO holders will be able to delegate their voting power to a proxy. As a proxy, you can seek delegation in a variety of ways, for example:
- DeFi Consulting Services can say: I will use these governance powers to improve DODO’s liquidity mining allocation, improve DODO’s TVL at the same cost, and thus positively impact the coin price. Please delegate your votes to me.
- A project owner can say: I will use these governance rights to get my project recommended by the DODO home page and media publicity support, and anyone who delegates their votes to me will receive a portion of my project’s tokens in the future. Please delegate your votes to me.
- The DODO team can say: We are ‘in it for the long haul’, and will pay more attention to the long-term development of DODO rather than short-term interests. We can’t promise any financial gain, but if you trust our founding team, you can delegate your vote to me.
Such an agency mechanism can:
- Greatly improve governance efficiency and make DODO more decentralized
- Improve token utilization and help DODO grow better and faster
- Bring more intuitive and diversified economic benefits for principals
It is worth mentioning that the DODO token itself is just a typical ERC-20 token, which technically does not have the possibility of delegating the liquidity for governance power. In order to complete the above upgrade, we need to deploy new vDODO contracts and generate vDODO using DODO as collateral. Therefore, we propose that, henceforth, only vDODO tokens will grant voting rights.
Upgrade approach
If this DIP passes, we will perform the following actions:
- Develop the new governance system
- Migrate from the old vDODO contract to a new one
The current governance procedure would remain unchanged before the migration.
After that, all DIPs will be voted using the new system. No rules for proxy competition.
The team has created the proposal on the Snapshot, please vote here: Snapshot
Voting period: April 12, 2022 at 1:00 PM to April 15, 2022 at 1:00 PM SGT
I don’t mean staking usdc