What's Going on with IIP-174 and DPI Metagov?

Governance Meta-Governance
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Hey frens at Index Protocol (fka Index Coop :owl:),

It’s your favorite retired contributor here, back with a bit of friendly curiosity. First off, big props to the team for continuing to push the boundaries of DeFi governance. That said, I’ve been trying to piece together what’s been happening with IIP-174: DPI Metagovernance Organization and Delegation, and, well… things are looking weird.

From what I can tell, we had a signer removed from the multisig in November ‘23, but there was zero communication about who was removed or why. I mean, of the original signers—funkmasterflex, MrMadila, and allan.g—it’s honestly not even clear who’s still on the multisig. Who’s calling the shots here? For a system designed to be decentralized and transparent, this silence is raising my eyebrows.

At this point, it feels like the whole thing might be, dare I say, captured. DPI’s metagovernance rights are a significant lever of influence in DeFi, and the lack of transparency around their execution doesn’t inspire confidence. I’m not here to throw shade, rather I’ve gotta ask:

  1. Who’s Running the Multisig Now?
  • The Gnosis Multisig (0xec51be…) was central to executing metagovernance votes. Post-signer shuffle, who remains, and how are decisions being made?
  1. What’s Happening with Metagovernance?
  • Have UNI and COMP delegation been activated as planned?
  • Any progress on the MKR custom solution or broader token integrations?
  • What’s the track record since IIP-174 passed? Any major votes or wins?
  1. Why the Silence?
  • The removal of a signer and the subsequent blackout on communications is a major red flag. Is there something preventing transparency here?
  1. Accounting for Actions
  • Was AAVE delegation ever transferred from ELEV8 Crypto to the new internal address?
  • How are the multisig and its delegates balancing the INDEX Snapshot votes with execution?

I’m here with the best of intentions. DPI is still one of the coolest products in DeFi, and I want to see it thrive. But this radio silence combined with murky governance feels off, especially given how crucial metagovernance is to Index Protocol’s value proposition. If this system is truly serving the INDEX and DPI communities, a detailed update and accounting shouldn’t be too much to ask.

I’m wishing the remaining team all the best, and I hope this thread sparks some much-needed clarity. If there’s anything I can do to help as a former contributor or just a concerned degen, let me know—I’m always here for the cause.

Stay decentralized (and communicative),
mel.eth, StableLab

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Hi @mel.eth thanks for swinging by and your continued interest in the project.

Before I answer your questions, in timing of great coincidence I must refer you to IIP 190 just posted.

Regardless I will ofc help to clarify as much as I can however some of your questions cover quite a long time span and also Funk was the DRI and no longer a contributor at Index so apologies in advance as my recall is going to be limited:

  1. The multi-sig.

    • Funk and Allan are no longer Index Coop contributors and so the remaining signers are myself, and @anthonyb.eth replaced Allan
    • As always $INDEX holders ultimately call the shots. They delegate day to day running of the DAO to the Ops Pod who allocate resources when and where they are most needed (more on this in point 2.)
    • The Aave delegation was passed from ELEV8 to the msig

  2. The significance of Meta-gov

    • The influence of DPI’s voting power has significantly diminished over time. DPI’s circulating supply is down 66% since it’s peak in 2021 meanwhile the circulating supply of underlying governance tokens will have increased. Using a rough aggregate $ value of DPI market cap / Total Defi market cap. DPI has lost ~80% of it’s dominance 2021 - to date.
    • Whilst I know and appreciate meta-gov is an important area for you personally, however with all respect, unfortunately the same cannot be said for the overwhelming majority of Index Coop stake holders. Simply put there has been virtually zero demand for Index to maintain this discretionary function.
    • In this respect meta-governance over the years has been de-prioritised in favour of much more pressing issues. Resource allocation has had to be drastically overhauled to ensure the long term sustainability of the DAO and to try to re-discover growth and PMF above all else

  3. Transparency

    • I’m sorry you don’t feel enough communications have been forthcoming regarding this topic. There has been no agenda to withhold information. As I mentioned the priority of this function has simply faded over time.
    • With the limited resources we have, including our attention to fast moving market environments and strategic planning, we do our best to balance this with our communications. We will take your concerns and feedback onboard as a signal of what is wanted from us.

Hope all is well.
Mr Madila

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Wow, end of an Era. DPI is a beast of a case-study: @scott_lew_is @Felix @BigSky7 my DMs will always be open, I’d love to get your take on the 4-year narrative now that it’s a wrap.

Hope to see a bunch of Owls in Denver soon, so much love. - Hoot :owl:

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