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.
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.