We, as Index Coop, want to be a trusted and reliable partner to those protocols underlying our current and future indices, taking our unique responsibility within the DeFi and crypto ecosystem seriously. We do this by establishing a strong meta-governance framework, by providing a great experience for voters, and by being an informed and well-connected entity.
This post sets forth the meta-governance efforts beginning today and our goals for the next quarter and beyond.
Day 1 Meta-Governance Efforts
Things being done today
Set Protocol currently manages all meta-governance operations at Index Coop. We have begun moving forward in bringing certain meta-governance operations in-house from Set, starting by downloading some of @gregdocter’s knowledge and starting to take responsibility for certain community-side meta-governance functions with upcoming meta-governance votes. Over time, we plan to continue to bring such functions in-house.
2. Governance Principles
We need a structured framework for analyzing meta-governance proposals. After a number of Compound votes, we’ve just had our first few Aave meta-governance votes, and more meta-governance votes will come online soon. What this means is that we need to (i) build out our meta-governance structure as the quantity of votes increases and (ii) analyze meta-governance proposals in a structured way.
We believe the Index Coop community should adopt a detailed set of governance principles through which future meta-governance votes should be analyzed. We will propose a draft of such governance principles in a separate forum post for discussion and refinement by the community. Obviously, all $INDEX holders will remain to be able to vote in any way they see fit. But we think this is a productive way to guide voters and build trust, and would serve as a symbolic move to guide future action, similar to the overarching principles that guide Index Coop.
3. Protocol Ambassador Program
As Index Coop continues to immerse itself financially within the DeFi ecosystem, we need to also further immerse ourselves socially. Having strong relationships with each of the protocols underlying $DPI and any future indices creates an unforkable moat and provides us with an advantage in terms of supporting $DPI.
As a key example, efforts are underway to get $DPI listed on Aave as collateral (led by @LemonadeAlpha and @Matthew_Graham). This is valuable because it makes holding $DPI more productive for users. To get $DPI listed, we need 80,000 Aave votes in support of this proposal. $DPI holds ~65,000 Aave, so we’re ~15,000 votes short. In order to bridge this gap, @Matthew_Graham – who has a strong pre-existing relationship with the Aave community – is proposing to create a multi-sig to which $DPI holders can delegate their votes to in support of this proposal.
We have many big-picture, long term goals of this ambassador program outlined in the Q2 Goals section below, but we think this serves as a great first, experimental step in building out an (informal, for now) ambassador program for Index Coop. This will serve as a useful learning opportunity for discovering the kinds of benefits possible by having a strong understanding of the protocols underlying our indices, and can be used as a roadmap for getting $DPI listed elsewhere, developing a formal ambassador program and building a proxy system to delegate votes.
Q2 Meta-Governance Goals
Things we hope to build out over the course of the next quarter (and beyond)
1. Enable Snapshot meta-governance on remaining protocols within DPI
- We currently support meta-governance proposals on Compound, Aave and Uniswap (but largely have only seen Compound votes)
- Current proposal to allow Snapshot meta-governance on YFI and Balancer
- We should allow Snapshot meta-governance on remaining tokens within DPI as soon as practicable
2. Build out ambassador program:
- Expand Index Coop’s insight into protocol sentiment, upcoming proposals, other news - in other words, serving as a “reporter” for all relevant things happening that might prove valuable for us (i.e., each ambassador would be expected to keep current with their protocol’s Discord / forum)
- Allows us to build future partnerships as an entryway point for other BD efforts
- Entryway point to assist in listing DPI as collateral on other protocols
- Potentially serve as delegates to (i) pool support for initiatives at the underlying protocol that bring value to DPI / Index Coop (e.g., @Matthew_Graham’s work with Aave) and/or (ii) a future proxy system
3. More experiments to improve meta-governance
- Improve system for announcing new votes (e.g., EPNS)
- Delegating votes / proxy system
- Governance mining (see @DarkForestCapital’s original post and the latest thoughts on the topic from the Treasury WG)
- We are calling these “experiments” because we will need to test what is effective and balance that against second order consequences
4. Build out organizational structure for meta-governance within Index Coop
- Ultimately, this may be proposed as a new working group within Index Coop, but to begin, we think it’s important to start organizing and experimenting more informally - certain meta-governance related ideas have been proposed by various individuals and working groups over the past few months, and we will need to organize and coordinate these efforts
- A “hub” to contain all current meta-governance projects, upcoming plans, and oversee Coop-wide meta-governance strategy
Why Does This Matter?
This initial meta-governance strategy is designed to:
- grow Index Coop’s engagement in meta-governance proposals
- improve our analysis of proposals
- build continued trust with protocols underlying our indices
- import operations in house
The number of governance and meta-governance votes currently live on Snapshot (and the low engagement certain votes receive) proves that we need to think intentionally about our efforts in driving engagement. By leveraging the full value of our meta-governance capabilities, we will be able to better support Index Coop initiatives and build trust and credibility within the DeFi community.