Title: Form a Meta-Governance Committee
Author(s): @Lavi @cedrick @ncitron @kiba @gregdocter
Discussions-to: **Updated** Proposal to form a MetaGovernance Committee Created: June 22, 2021
We propose to form a Meta-Governance Committee (MGC) that is given full delegation of all INDEX meta-governance votes in any meta-governance proposal in which quorum is not reached by the community.
In order to address a failure to reach quorum on a growing number of meta-governance votes, we propose to create a Meta-Governance Committee of five individuals, elected for a 3-month term, who will be given full delegation of all meta-governance votes in any meta-governance proposal in which quorum is not reached by INDEX holders. There is no proposed change to the current meta-governance process (detailed here) for any votes in which INDEX holders do reach quorum. There is also no change or impact for any non-meta-governance votes.
Each member of the MGC will receive a monthly stipend of $1,500 to compensate for time and attention to meta-gov votes.
We hardly reach quorum on meta-governance votes. An analysis of the most recent meta-governance votes shows a clear picture: for the period from April through today, we reached quorum on meta-gov votes less than 25% of the time, which means Index Coop is not making use of this important value proposition of the INDEX token in ~75% of votes.
Why? Some educated guesses:
- Voter fatigue: frequency of meta-gov votes has increased substantially. The voting frequency will only increase more, now that Balancer and Yearn are live and others may come online in the future.
- Nature of these votes: most meta-gov votes are “house-keeping” votes that are not met with great interest or cause much debate.
The proposed MGC will serve as a backstop to our current INDEX meta-governance voting structure. By only operating when quorum on meta-governance votes is not reached, the MGC is designed to prioritize decision-making by INDEX holders, but serves to ensure that Index Coop participates in meta-governance even when INDEX holders choose not to participate in a meta-governance vote (as is often the case for more routine, “house-keeping” type meta-governance proposals).
The MGC is our solution for meta-governance as both Index Coop and meta-governance scale. By not engaging in meta-governance for most votes, we are missing an opportunity to further build trust and rapport with the protocols within DPI and build value for Index Coop. By having the MGC, Index Coop will be able to participate in every meta-governance vote. As a consistent, thoughtful participant in meta-governance with tens of millions of dollars worth of votes per protocol, we will be able to strengthen our ties with each protocol, expand our influence in the DeFi ecosystem, and support those proposals which are most important to Index Coop.
Further motivations, considerations and community discussion can be found in the prior forum discussion here.
- Any meta-governance vote that reaches quorum continues to be decided accordingly by INDEX holders (as is done today)
- For any meta-governance vote that does not reach quorum, the MGC acts as a backstop to ensure that Index Coop participates in the vote: the MGC is given full discretion to decide the outcome and vote on behalf of all INDEX holders
- The MGC will serve a 3-month term, with community nominations and an election to determine the next slate occurring prior to the end of the term
- It is the MGC’s responsibility to thoroughly review, analyze and decide votes to fulfill Index Coop’s meta-governance duty and privilege
- The MGC will initially consist of the following individuals for a 3-month term:
- A 3 of 5 majority is required for the MGC to vote
- The MGC will be supported by the protocol ambassadors as needed
- INDEX holders can call for any or all MGC members to be replaced at any time via IIP and Snapshot vote as a backstop in the unlikely case of major MGC / Index Coop disagreement
- The MGC will report all decisions/votes back to Index Coop in a transparent way (e.g., at minimum, announcing each vote to Index Coop and, for any votes which are more controversial or disagree with the majority, providing an explanation for why MGC voted the way it did.
- Each member of the MGC will receive a monthly stipend of $1,500 to compensate for time and attention to meta-gov votes.
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