Prime Development Proposal #013: Updating PrimeDAO voting framework

Governance
1

Background & Motivation
Since its inception in November 2020, PrimeDAO has operated via a Two-Token system, where Governance was guided by a non-transferable reputation, measured with the PrimeDAO Reputation token, which was managed by PrimeDAO’s treasury through an in-house REP management safe module, instead of the D2D Network token. The main reasons for using reputation > D2D in the early stage were 1. Separation of pure financial ownership vs. governance power 2. Allowing for reward flexibility as REP could be allocated separately from D2D, and 3. A better overview of governance participants.

Due to new Governance tools and frameworks emerging (badges, zodiac, guild) and the increased distribution of the D2D token (approx 22M in circulation with 3M held by leading DAOs) - it’s come to a point where the Reputation system is likely not the best framework for stakeholder alignment and governance in PrimeDAO. This proposal aims to improve stakeholders’ coordination in PrimeDAO by proposing governance framework and voting strategy changes.

A. Remove the REP voting strategy from Snapshot and replace it with the D2D, D2D/USDC BAL (unstaked), D2D/USDC BAL (staked), D2D USDC SDT, D2D USDC AURA, D2D/BAL strategy.

Actions

  • The REP voting strategy, which currently has 19414 tokens in circulation with 146 holders, will be removed from PrimeDAO’s snapshot.

  • The D2D voting strategy will be added to Snapshot, with each D2D being weighted as 1 PrimeDAO Voting Power (PVP).

With 9M+ D2D in Balancer pools, it’s important to ensure pooled tokens are eligible to vote. The following strategies will include Balancer LP tokens and locked LP tokens in different locations.

  • D2D/USDC on Balancer (unstaked): 1 = 1.322 PVP
    Calculation: 6,035,287 D2D/USDC in circulation with 7,957,978 D2D locked in this pool = 1.322

  • D2D/USDC on Balancer (staked): 1 = 1.322 PVP

  • D2D/USDC on Aura (staked): 1 = 1.322 PVP

  • D2D/USDC on StakeDAO(staked): 1 = 1.322 PVP

Calculation: 7,299,231 D2D/USDC in circulation with 9,650,280 D2D locked in this pool = 1.322

  • D2D/BAL on Balancer: 1 = 7.546

Calculation: 146,635 D2D/BAL in circulation with 1,106,537 D2D locked in this pool = 7.546

We proposed updating these respective voting strategies to match the actual ratio in the pool at the start of each Q.

B. Update the voting duration to be more simple yet rigorous by updating Snapshot Settings

Set the standard Snapshot proposal duration to 5 days with no fixed requirements in terms of proposal duration on the Discourse Forum.

4 Likes
2

Thx for this!

I am fully supporting this proposal.

REP system was useful at the beginning but now is the right time to give the Governance power to the D2D holders!

Given the fact that we have strategic partnerships with multiple DAO’s by doing a token swap, bringing those aligned stakeholders’ to the Governance process will be the right choice.

Also I believe, giving an additional incentive to the D2D holders will reflect on the D2D price’s in the long run as we shape this Governance process with additional tools like badges etc.

3 Likes
3

Happy to see and support the proposal!

I’m excited to see Prime’s strategic partners having a more active voice in its direction and interested in seeing how it can work in tandem with other governance tools and frameworks.

3 Likes