Community Governance is here
Today, Monday January 4, 2021, YFDAI has officially launched Community Governance. This is a crucial first step towards full decentralisation of the decision-making apparatus. The Community Governance structure is a process that involves engagement of the community, firstly to determine the rules of engagement regarding governance, and secondly, how we will structure the governance and the DAO itself.
We have just released our first bare-bones version of the community voting interface, allowing yes-no votes on proposed issues. To reach consensus of additional details prior to the main vote, polls will be utilised in an exclusive Community Governance TG group.
In addition to building out the voting app to encompass more complex votes, key issues in the community’s early phase discussions include the need to address the blueprint of how the community wishes to structure the governance process itself.
Some examples of key topics include ways to incentivise those who wish to participate, reaching a decision on whether to mandate the proposed 2 YFDAI voting proposition, and other preliminary considerations. Additional ideas include adding special voting incentives for active voters (e.g. being whitelisted for LaunchPad pre-sales, and attain an extra 0.25X increase in their loyalty multiplier on staking and farming rewards).
Governance funding of 300 YFDAI will be set aside for community voted products or services to be implemented. This is a large fund for the community to have their say and implement new services to compliment the full DeFi suite. Alternatively, these funds could be used by governance vote for exchange listings or similar advancements.
Once a series of “User Acceptance Testing” (UAT) has been accomplished, the first major voting decision will be about the formula to attract liquidity to the SafeSwap DEX for vetted and already-issued tokens. We have received several valuable recommendations thus far, and will solicit more in order to present them to the community at large for discussion prior to voting.
As previously stated, YFDAI’s original vision for SafeSwap is that it will be a landing platform for LaunchPad projects where initial seed liquidity would come from the funds raised during their LaunchPad pre-sale. After vetting more than a dozen candidates, our first project will soon come to LaunchPad and will establish a “proof of concept” in regard to providing a safe environment for users to engage with new startups in the crypto space.
Unlike Uniswap and other DEXs, SafeSwap vets all projects for listing, and therefore the platform’s stringent protective listing requirements create a barrier to liquidity not faced by the main DEX competitors. As a result, we are considering several options to expand the DEX and attract liquidity, which will include proposals that involve the issuance of a platform token and/or an NFT that would be intertwined with the governance process. Thwarting rug-pulls that list and attract liquidity with outsized rewards forces us to find the formula that encourages farmers to bring liquidity to the SafeSwap DEX.
As part of our liquidity generation campaigns, if the community votes to introduce a token for SafeSwap, there will also be decisions in regard to launching it. To avoid managing the legalities of an ICO, we are considering doing an airdrop to existing YFDAI holders, similar to how UniSwap reacted to SushiSwap. This would attract liquidity providers and platform users to SafeSwap, after the marketing campaign spreads awareness of the airdrop. The community would also participate in determining the tokenomics (e.g. 250,000,000 issuance Max supply), the airdrop allocations to the community, platform users, those held for development, and those held for staking rewards.
Community members receiving the airdropped SafeSwap tokens would be able to lock them into a new vault for fixed periods of up to 120 days and as a staking reward, receive non-fungible tokens (NFTs) with varying degrees of rarity and utility. Stakers of SafeSwap tokens would also receive staking rewards, which would be determined by governance procedure.
In the YFDAI Whitepaper, when we stated that we will transition to an intuitive governance model, we weren’t kidding. No other DeFi group goes to the lengths YFDAI does to reward liquidity providers and the existing loyal community.
Since its inception, YFDAI has relied on the participation of the community and implemented many changes to improve the user experience on the platform. Among other things, we recently changed the farming rewards to every 24 hours instead of every 7 days. Early and informal YFDAI community intervention caught a smart contract vulnerability, which we corrected in response.
Based on community feedback, we also are aware that many holders may have 2 YFDAI in their portfolio and thus qualify to participate in the governance, while others don’t. We also realize that those tokens may already be locked in farming and staking contracts and have accrued multipliers and time vested towards receiving NFT’s that should not be disturbed. On Page 34 of the Whitepaper, it says:
In the interest of fairness, we will bring it to governance discussion and vote as to whether to change this Whitepaper requirement to a different one (for example, using LP tokens similar to how SushiSwap and Kyber address this issue). For the time being, we have a minimum viable product (MVP) for governance voting that has the following features:
➲ Minimum 2 YFDAI held in a Metamask wallet that will be deposited into the DAO contract
➲ Capped proportional representation: one vote for each 2 YFDAI in your wallet to a maximum of 20 votes.
➲ After 3 to 7 days the YF-DAI can be withdrawn from the DAO governance contract
YFDAI’s rewards program can go a step further than other DEXs by offering an NFT in addition to the same benefits users receive on other platforms. This innovation would encourage LP providers to migrate and lock LP tokens in the SafeSwap Farming pools in order to participate in governance.
If the LP providers keep the tokens in the pool for 120 days (or whatever period the voters decide) they would receive an NFT that would entitle them to receive a pro-rata share of the 25% development fees that have been allocated from the banner ads and SafeSwap fees. This would ensure that adding liquidity to SafeSwap would be more profitable than adding liquidity to any other DEX, allowing us to list any token. These benefits will allow SafeSwap to instantly gain large liquidity and volume.
The development of the SafeSwap exchange is a practical and desirable use of the funds obtained and would not reduce any rewards already dedicated to YFDAI farmers and stakers. As a side note, many have asked us to do another last man standing NFT event, since they missed out on the earlier event that started on November 15, 2020. This option will also be incorporated into the first proposal for voting.
Since we want to make governance a front-and-centre concept, we want the whole community to be involved. The 2 YFDAI holding requirement is waived during UAT, during which we will run informal polling on ideas for structuring the governance process itself and attracting liquidity to the SafeSwap platform.
A separate governance telegram channel will be arranged for the purpose of submitting proposals, engaging in discussion, and voting. After UAT, access to the channels for posing and discussing proposals will be limited to those meeting the DAO requirements.
Over the long term, the community will appoint a council of crypto/DeFi experts to vet proposals, and narrow voting choices to a manageable and sustainable set of options. The council therefore, will function as trustees for the community at large. The community overall will ultimately make the decisions by (1) determining the Council, and (2) voting on all issues posed to them by the Council. (3) determining how long Council members will serve and how they will be removed if they fail to perform their duties.
During the initial User Acceptance Testing (UAT) phase, we wish to leverage the expertise of our community to flesh out a viable and sustainable governance model innate to the YFDAI product set and community as well as proposals to migrate liquidity to the SafeSwap platform. Informally, we might consider this phase as a Constitutional Convention. Thus the early informal process will lead to votes on issues determining what governance looks like in the long term.
Over the course of mere months, YFDAI has grown its platform from a Defi protocol to a state-of-the-art, all inclusive DeFi suite. Its inclusion of NFTs, SafeSwap, LaunchPad and community expertise has not only fostered YFDAI as an innovative DeFi ecosystem, but has helped set the formula in becoming a guarantor of a DeFi world where the masses can access DeFi products confidently and securely.
Coupled with its newly formed decentralized governance model, YFDAI is primed to become a DeFi behemoth that will usher in the next era of DeFi for the masses.
Telegram Governance- https://t.me/joinchat/TjNNP9ipD9ObYLUU
Telegram Community- https://t.me/yfdaifinance
Telegram Announcements — https://t.me/yfdai