Community Call Governance Workshop - September 28, 2022

In today's Governance Workshop, the team discussed ALCX staking, Rook's mission & purpose, governance reform, and more.

Rook logo and branding with white cubes; recap by Starbased
Governance Workshop is a biweekly, open meeting where we discuss specific proposals that are in progress and workshop new ideas about Rook's governance process.

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View the agenda for this event.

A review of proposals and other documents in progress:

New KIP AMA: ALCX Staking

  • This KIP proposes that the DAO stake its ALCX in the native Alchemix staking platform both to earn a return on otherwise idle assets and to support Rook’s partnership with Alchemix.
  • This ALCX was acquired as part of the partnership between Rook and Alchemix in order to gain the voting power needed to secure a Tokemak Reactor during the C.o.R.E. event. Rook committed to hold the ALCX for one year, a period that ends on July 22, 2023. [2:45]
  • The KIP includes analysis of the expected returns based on the current staking yield and expected holding period. It also includes a discussion of risks (and mitigation): typical smart contract risk (however, the contracts have been audited); execution risk (which can be mitigated by the multisig and delegated team); and opportunity cost (but honoring the commitment to Alchemix as a strategic partner is the priority). [5:00]
  • Since ALCX staking is not time-locked, the treasury may still un-stake as they please.
  • Participants discussed various aspects of the proposal, and arrived at consensus in support of it moving forward without modifications.

Core documents progress: Rook’s mission and purpose

  • Tommy joined the workshop to present the new proposed statement of purpose and values for Rook. [13:00]
  • In addition to providing a north star for DAO contributors and members, the statement will act as a governance safeguard to guide the DAO in evaluating proposals, and will facilitate accountability between Rook Labs and the Rook DAO.
  • In addition to a long-term purpose focused on making value exchange as beneficial as possible for users and protocols, the document also proposes Rook’s near-term “essential intent” to apply this purpose to MEV.
  • Next steps: A revised draft of the document will be posted to the Forum for more community discussion, pending any potential revisions from a legal/compliance perspective.

Recent events:

  • A recent proposal from Gnosis SafeDAO outlines a set of rights and responsibilities of DAO members, and defines the participation in a DAO as voting – not holding tokens. [25:00]
  • The Ooki CFTC lawsuit has implied that users and protocols are liable due to their voting participation in a DAO. The implications of this should be considered. [28:30]

Governance reform:

  • Revisiting KIP-32, participants discussed possible approaches to further refine token-weighted voting and time-based staking rewards for xROOK.
  • Possibilities include a backward-looking staking approach (based on time staked rather than forward-looking locking commitments). In other words, increased governance power could be based on how much time a user has already staked, rather than how much time the user has agreed to lock into the future. This could also be combined with decay functions related to time, or to voting and governance participation activity. [40:20]