Proposals

Gelato Network (GEL)

Proposal: Accelerating Gelato’s Growth: Proposal to Allocate 20% of GEL Supply or 43% of Current DAO Treasury for Future Financing Rounds

Author: Magdalena

Summary: This proposal requests to allocate 20% of GEL’s total supply (43% of the DAO’s treasury) to future funding rounds in order to accelerate Gelato’s growth and realise its Roadmap 2.0.

Key Points:

• After successfully passing a vote to accelerate the unlocking of private investors’ GEL vestings, Gelato Network seeks to raise additional capital for its future roadmap.
• The proposal requests to allocate ~$25M in GEL for future funding rounds done in tranches over time to institutional investors.

• The additional capital will be used to scale up Gelato’s engineering and growth department so that Gelato will remain competitive in the decentralised cloud computing space.
• Gelato’s current burn rate is $300k — $400k/month which is mainly spent on salaries.

Gelato’s 2023 Roadmap includes:

• Web3 Functions — Enables projects to augment their smart contracts by accessing off-chain data and computation, allowing projects to connect their smart contracts to the rest of the internet.
• Gasless Wallet SDK — Providing a web2-like UX with account abstractions. The SDK will consist of Gelato Relay, Smart Contract wallets (i.e., Safe), and a user-friendly onboarding solution.
• $GEL Staking & Network Decentralization — Launching a decentralized network of Node Operators that are required to stake GEL to participate in off-chain computation and transaction execution services. In return, NOs will receive a share of network revenue. Later on, GEL token holders will be able to stake their GEL with NOs to also earn a share of network revenue.

Our Take: Gelato Network has continued to show its sustained demand & growth throughout multiple EVM chains that require automation services. Their Roadmap 2.0 contains advances in the protocol that will be crucial to the protocol’s dominance in the decentralised back-end infrastructure market.

Redacted Cartel (BTRFLY)

Proposal: Launch Dinero Protocol

Author: Anonymous

Summary: This proposal requests permission from the DAO for the Redacted core development team to build and launch the “Dinero Protocol” — a public permissionless RPC, a decentralized stablecoin, and an ETH Liquid Staking Token (LST).

Key Points:

• If approved, the redacted development team will build, launch, and maintain the Dinero Protocol on behalf of the DAO.
• The front end will be developed by the Redacted team, released as open source, and deployed by DAO-selected operators.

Outlined in Dinero’s litepaper, the protocol will introduce:

• A public and permissionless RPC for users.
• A decentralized stablecoin (DINERO) as a medium of exchange on Ethereum.
• An ETH Liquid Staking Token (LST) which benefits from staking yield and the Dinero protocol.
• Dinero Protocol will utilise Redacted’s Pirex protocol to create a liquid wrapper for ETH (pxETH) which will take the user’s ETH deposits and stake them to validate transactions. Eventually, Dinero protocol validators will power the Redacted Relayer (RPC).
• DINERO will be a collateralized debt position (CDP) stablecoin primarily backed by pxETH and ETH and will act as the currency for the Dinero protocol.

The Redacted Relayer will allow for:

• Meta transactions — users can interact with the Ethereum blockchain without having to pay transaction fees in ETH and instead use DINERO.
• Private transactions — DINERO will become a gateway token, unlocking access to the pxETH’s private block space and opening up additional use cases such as payment for order flow.

Our Take: The Dinero Protocol is an interesting money experiment that (if successful) could set a precedent for protocols looking to offer their users user-owned block space.

Arbitrum (ARB)

Proposal: AIP-1.1 — Lockup, Budget, Transparency

Author: Lemma

Summary: This proposal is a follow-up from the previous unsuccessful AIP-1 vote, addressing the community’s concerns around the transfer of 750M ARB to the Foundation’s “Administrative Budget Wallet”. Specifically, it proposes (1) a lockup, (2) a budget, and (3) transparency reporting regarding the Foundation’s administrative budget.

Key Points:

• The Administrative Budget Wallet will be used for covering ongoing administrative and operational costs of The Arbitrum Foundation, payment of service providers, and for the purpose of fostering the growth and development of the Arbitrum ecosystem
• Of the 750M ARB distributed to the Foundation’s Administrative Budget Wallet, 0.50% was used to complete the initiation of the DAO including a loan and sale to meet expenditure obligations.
• The remaining 700M ARB will not be used until the DAO has approved the proposed budget. Furthermore, the remaining allocation will be placed into a smart contract that vests the tokens linearly over the next 4 years (i.e., a total of 175M $ARB yearly).

The proposed annual operating budget for the first year of the Foundation is:

• Lastly, the Foundation has expressed their commitment to providing a comprehensive annual report and semi-annual progress update. This will provide the community with a better understanding of the Foundation’s expenditures, balance sheet, and pursuit of ecosystem growth opportunities and developments.

Our Take: The Arbitrum Foundation has provided a simple set of solutions to address concerns raised by the community. We believe utilizing on-chain enforcement alongside high-level transparency reports is a step in the right direction and we look forward to watching the growth initiative that transpire from the allocated budget.

Votes

1inch (1INCH)

Proposal: Remove st1INCH(v1) Voting | Modify st1INCH(v2) and v1INCH Voting Weight Calculations

Status: Live.

Created: Apr 7th, 2023.

Ends: Apr 12th, 2023.

Leading Consensus: Yes — 5.1M 1INCH (97.6% of total votes).

Summary: This proposal seeks to modify the 1inch DAO governance process by replacing st1INCH voting and delegation with Unicorn Power instead of token balance, and increase the Snapshot proposal creation threshold to 100,000 Unicorn Power from 25,000.

Synthetix (SNX)

Proposal: SIP-317: Spot Markets (V3)

Status: Live.

Created: Apr 5th, 2023.

Ends: Apr 15th, 2023.

Leading Consensus: sYes — 5 SNX-SCT (100% of total votes).

Summary: This proposal introduces a spot market implementation for V3 that issues ERC-20 tokens that can be exchanged for snxUSD at a rate determined by a price feed plus or minus fees. The V3 architecture will allow for separate spot markets, therefore, introducing separate fee structures while retaining the protocol’s core logic.