🇫🇷 Disponible en FR dans le deuxième post
🇺🇸
Summary
Following the validation of proposal [RIP00007], we must elect a working committee whose mission will be to define the rules and algorithms for PowerVoting snapshot.
This work is crucial for the DAO, as it will define what voting powers a REG token will obtain when used in a DApp, locked, or otherwise.
This approach encourages holders to participate/place their REG in DApps to obtain more voting power, aligning the interests of holders and DAOs based on the holder's commitment.
Context
A working committee is needed to define the rules and algorithms for PowerVoting snapshot, as the reflection work has a direct impact on the DAO.
Proposal [RIP00007] has defined the basic framework for the committee's subsequent work.
The committee will need to define the rules and algorithms for PowerVoting snapshot and then submit a proposal through the defined voting process.
Calculation for epoch 1 voting
For epoch 1 voting, RealT implemented a simple algorithm:
- REG tokens in wallets and incentive vault: 1 vote per token
- REG tokens in liquidity pools: 1.2 votes per token
- Provided liquidity in counterpart: 0.5 votes per REG equivalent
Example:
a. 1000 REG in a wallet = 1000 votes
b. 500 REG in a liquidity pool = 600 votes (500 _ 1.2)
c. 1000 USDC in a REG/USDC pool where 1 REG = 1.30 USDC:
REG equivalent = 1000 / 1.30 = 769.230769231 REG
Votes = 769.230769231 _ 0.5 = 384.615384615 votes
Two snapshots took place during epoch1 (October 29 and November 14). The PowerVoting assigned on these occasions will remain unchanged until the next snapshot.
Specifications for future epochs
After expiration of epoch 1, the algorithm and rules for applying powerVoting will be modified according to specifications voted by the DAO.
General framework voted in proposal [RIP00007]:
General framework for calculating voting power:
- Flexibility to adjust weightings according to different criteria
- Possibility to integrate new factors over time
Examples of potential weightings (to be discussed and adjusted):
REG tokens in wallets: 0.1 votes per token
Tokens locked in incentive vault: 1.2 votes per token
Liquidity provisions: 2 votes per token and REG equivalent
Adjustment process:
Regular algorithm revision (for example, every 6 months)
Modification proposals submitted to DAO vote
Factors to consider for future evolution:
- Token holding duration or snapshot at time T
- Active participation in previous votes
- Contribution to Pool(s) liquidity and ecosystem stability
- Snapshot frequency
- Mechanisms to prevent system manipulation
The DAO (through the dedicated committee) is free to imagine the criteria and power voting boost factors that allow it to direct liquidity according to its objectives.
The voting power boost allows favoring targeted actions and behaviors with REG, rewarding actors who move in the direction desired by the DAO.
Discussions and the proposal to be submitted for vote must focus on uses and objectives for the next 6 months, general rules such as triggering rule updates.
Committee member selection criteria
- Active participation in previous votes
- Understanding of voting power stakes and impact on the DAO
- Motivation and commitment to committee work
- Ability to analyze data and propose solutions
- Creativity and ability to imagine new solutions
- Ability to listen and integrate DAO suggestions
- Ability to work in a team and manage different opinions
Being a developer is not necessary to be part of the committee, RealT or the dev community can implement proposed solutions, however having people capable of development would be a plus for the group.
Application submission
Please fill out the application form: https://forms.gle/YmByvCSEHnrA3YFe8
Depending on the number of applications, if more than the maximum available positions, a poll will be launched on the forum to elect committee members.
Implementation steps
- Forum poll vote to elect the committee
- Committee creation with elected members (training and setup)
- Start of committee work (action plan development, data collection, exchanges with DAO)
- Tool development if necessary
- First algorithm proposal
- Testing and validation of new algorithm
- Proposal vote
- PowerVoting update through new snapshot with new parameters
Team
- Dedicated committee for algorithm development (to be created)
- RealT technical team for tool development (if assigned to RealT)
- DAO members for proposals and votes
Budget
- Mainly development costs for simulation and analysis tools
Financial implications
- Potential development costs for analysis and simulation tools
- Potential rewards for committee members (to be discussed after work completion)
- Potential influence on REG token price and liquidity
Roadmap
- Application period: 1 week
- Forum poll vote to elect committee: 1 week
- Committee formation and setup: 2 weeks
- Committee debate and exchanges with entire DAO: as needed
- Onchain published proposal consultation: 1 day
- Vote on this proposal: 7 days
- Security queue: 2 days
Objectives
Enable the DAO to take ownership of governance mechanisms, voting power, define rules and snapshot algorithms for calculating DAO voting power.
This approach will increase alignment between voting power and DAO objectives, a flexible and evolving system capable of meeting current and future needs in line with DAO objectives.
Success metrics
- Increased active participation in ecosystem
- More balanced voting power distribution
- Improved REG token stability and liquidity
- Positive community feedback on new system
Mission alignment
This framework aligns with the Realtoken DAO mission by creating a dynamic and adaptive governance system, encouraging long-term engagement and active participation.
Key terms
- Snapshot: Capture of holdings state at a given moment to calculate voting power
- Weighting algorithm: Formula used to calculate voting power based on various factors
- Epoch: Incentive period triggered by DAO vote
Incentive periods may not be contiguous (there can be votes outside incentive).
However, PowerVoting is continuous, updated following a new snapshot (there can be multiple snapshots during an epoch, as occurred in epoch1)
- Voting power boost: Factor that favors targeted actions and behaviors with REG, rewarding actors moving in the direction desired by the DAO
- PowerVoting: Representation of a member's voting power based on various REG usage factors
