IIP - : Delegate 100% of Compound Meta-Governance Votes to Wildfire DAO

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IIP:

Title: Delegate 100% of Compound Meta-Governance Votes to Wildfire DAO Address

Status: Proposed

Authors: @keneeze and @bgiove

Simple Summary / Abstract

This IIP requests the IndexCoop’s Compound voting rights locked in the DeFi Pulse Index to be delegated to Wildfire DAO’s DeFi working Group.

Wildfire DAO’s DeFi working group will use this delegated voting power to actively participate in Compound’s Governance

About the Requestor

Wildfire is an extension of Fire Eyes :fire:_​:fire:, a service DAO created by James Waugh, Coopahtroopa, 0xLucas, and gladstonecallum. Fire Eyes :fire:_​:fire: has been involved in DAO’s since 2017, helping create best practices for coordination and governance participation.

Fire Eyes :fire:_​:fire: has played a vital role in the launches of numerous DAO’s such as ENS, Gitcoin, and SuperRare, and has been an active participant in governance across other Web3 projects such as Aave, Balancer, and Rocket Pool.

Wildfire DAO was created to help scale these contributions.

Wildfire is a meta-governance initiative designed to help align incentives in Web3. Our growing team of contributors across the DeFi, Public Goods, Creator Economy, and Infrastructure Operator groups aim to tackle the challenges facing DAO’s such as token design, governance, coordination, business development, growth and community building.

Wildfire DAO members across these four groups have begun to take the first steps towards achieving these goals through:

  • Connecting with the core teams & contributors on a recurring basis
  • Writing governance proposals
  • Participating in community calls
  • Updating the wider Wildfire network on protocol developments
  • Working with new projects to enable them to leverage Wildfire’s expertise

Motivation

Benefits for Compound and the DeFi Ecosystem

Compound Finance plays a key role in DeFi money markets and for that reason actively participating in Compound’s governance proposals is an important duty, currently Index Coop is the 25th highest holder of COMP governance voting power, with 36,131.8337 COMP locked inside the DeFi Pulse Index. Therefore continued voting activity using Index Coop’s COMP voting power would ensure active participation in one of DeFi’s most important protocols.

Benefits for Index Coop

Considering the Index Council’s decision to Reduce Contributor spend and completely discontinue flexible contributor work, Meta-Governance activity from Index Coop has been put on hold for the near future.

In exchange for this delegation Wildfire DAO will undertake all Meta-Governance Monitoring Activity on Index Coop. That means we will set up create awareness on Meta-Governance Votes on the Contributor and Community Discord, create canva flyers and set up the snapshot for these proposals, we will also track these proposals in the Index Coop Meta-Governance Tracker.
This commitment is usually a paid position here at Index Coop, Meta-Governance reps were previously paid $100 per vote monitored, considering that Aave and Compound proposals are our most active Meta-Governance events, the Wildfire team will undertake that responsibility in return for the COMP delegation.
In addition to this the Wildfire DeFi WG will pay $1000 to Index Coop for every month that we hold the delegated power for COMP from Index Coop.

By delegating voting power to Wildfire DAO’s DeFi pod, the Index Coop community will be ensuring continuity of Meta-Governance activity on Compound, Continuity of Meta-Governance monitoring on Aave and Compound, and the $1000 monthly payment to Index Coop. The Wildfire DeFi Pod Operators will also be providing high level summaries on how we voted on Compound Proposals at the end of every month, these summaries will be posted here on the forum and will serve as the feedback loop for our delegated governance voting activities.

Who will be voting on Compound Proposals using Index Coop’s COMP voting power?

@keneeze : Kene was the Index Coop Meta-Governance Rep for Compound before flexible contributions were discontinued, he has worked with the Content and Governance Pod at Index Coop as a Contributor, he also has a deep interest in Meta-Governance and has written about the subject in depth.

@bgiove: Ben is an analyst at Bankless, and has contributed to Index Coop products through Bankless DAO by serving as one of the GMI methodologists.

song : Song has extensive experience in traditional finance and in the blockchain industry and actively looks to employ best practices while navigating the lack of regulatory clarity in DeFi.

Specification

DPI multi-sig wallet delegates the Compound voting power to a Gnosis Safe Ethereum Address controlled by Wildfire DAO DeFi Pod.

eth: 0x7c1ba969B47C7b189eEE10bCC11d6e8897fD97c3

This voting power can then be used for voting on and submitting proposals on the Compound Governance Platform.

Vote

FOR

  • Delegate IndexCoop’s Compound voting power to Wildfire DAO

AGAINST

  • Do not delegate IndexCoop’s Compound voting power to Wildfire DAO

While I like the idea of meta-governance continuance, I also think there should be fee for being able to take on such voting power.

With IIPs only needing 1000$INDEX to go forward, there’s potential to get nearly $2m in voting power for less than $3k in INDEX.

1 Like

From a pure value-add perspective, there is little to no return for Index Coop and this is largely due to a lack of value capture mechanism from IC’s side

However, this provides liberty to proposals like this to offer some sort of a commitment, compensation, long term plan etc. in order to receive delegation

Whether IC continuously votes or not on certain protocols through meta-governance is something I see as non-critical, our meta-governance power remains regardless of the fact and it’s ready to support IC’s community & partners

It would be great to see this proposal revised to increase the value-add to IC

2 Likes

@Callen I agree to this, and I see your point. In exchange for this delegation Wildfire DAO will undertake all Meta-Governance Monitoring Activity on Index Coop. That means we will set up create awareness on Meta-Governance Votes on the Contributor and Community Discord, create canva flyers and set up the snapshot for these proposals, we will also track these proposals in the Index Coop Meta-Governance Tracker.
This commitment is usually a paid position here at Index Coop, Meta-Governance reps were previously paid $100 per vote monitored, considering that Aave and Compound proposals are our most active Meta-Governance events, the Wildfire team will undertake that responsibility in return for the delegation.
In addition to this the Wildfire DeFi WG will pay $1000 to Index Coop for every month that we hold the delegated power for COMP from Index Coop.

This has been reflected in the proposal above.

Hey guys! Personally a very big fan of what Wildfire is trying to do.
As most people commenting here, I think the Coop should be extremely careful about “gifting away” the value of their meta-governance.

Instead of a general delegation, why not use the IMP framework we discussed previously ?

We would like to introduce a new type of proposal called Index Metagovernance Proposals (IMP). This type of proposal would aim to enable the Gov Nest to create a proposal in another governance Index has proposal power on in the name of the proposal creator.
The IMPs would have the same proposal level and quorum level as other IIPs.

Wildfire would just have to ask for delegation on every vote, which would enable the Coop to stay in control of the voting power for more flexible use, while using it efficiently.

3 Likes

@GovNest please assign an IIP number and Gov Rep

Hi @keneeze & @bgiove ,

Thanks for the post. We in IC are big fan of the mission of Wildfire DAO and generally the Fire Eyes team. We appreciate and respect your expertise on DeFi governance, considering how plugged in you are to so many different ecosystems. We are glad you see the value of INDEX metagov power. Like us, you understand the value of governance and the operational capabilities needed to do it successfully.

At this time we are not interested in this proposal or delegating COMP. As you referenced, our budget does not include a governance nest or governance contributors. Our Growth team will be taking over this function for now as we don’t believe this service dictates a full-time role. Many of the services you listed can and will also be automated. We still believe metagovernance is an important part of Index Coop and certainly not something we are interested in delegating for free or such a low cost.

On advancing this post to vote: Govnest has been recently deprecated. For guidance on how to advance a vote to snapshot please check this post: Update To Snapshot Voting

I personally will vote against it and advise Index Coop contributors and investors to do the same.

cc: @funkmasterflex @DevOnDeFi @catjam @edwardk @anthonyb.eth

6 Likes

likewise i dont understand why Index Coop would delegate away our metagovernance power for nothing in return.

7 Likes