As PAL becomes available on the markets, it is extremely important that we keep pushing towards decentralized operations for the protocol and DAO in general.
As a core team we have done our utmost to respect decentralization while minimizing risks due to the infancy of our community.
There are currently 3 stages of decentralization we should strive to achieve this year;
- Community Treasury Management
- Operational Sustainability
- Parameters Management
Let’s go step by step through what each of these entail and how we propose to implement them
Community Treasury Management
The DAO controls over 60% of the supply of PAL, this multi-million dollar stack of governance tokens is our lifeline for future product development with a 10+ year outlook. We have to be responsible in the way we use it, to avoid diluting current holders too fast and keeping major firepower for Phase 2 & 3 of Paladin.
However the treasury doesn’t only represent $PAL. After the LBP the DAO owns 2.4M$ PAL-ETH and PAL-USDC LPs on Curve and Balancer and will accumualte all the protocol revenue before the Chest is live.
We want to separate the management yield bearing Treasury and the $PAL treasury.
The $PAL treasury will only be allocated for operational purposes and emissions to bootstrap pools through hard governance (PGP). The funds are currently in the Core team multisig and should be moved as soon as possible in a more trustless solution (in a community multisig before in smart contracts when on-chain governance is enabled). The elaboration of the Community multisig will be introduced in PGP-8: Community Multisig Election.
For the yield bearing treasury (LPs + other afterwards), we should have a specialized committee dedicated to managing them to maximize yield output for the DAO. This will be explored more thoroughly in PGP 9.1: Treasury Management Committee.
For the sake of transparency we will also publish what was spent in the name of the DAO up until now so community members can understand what was deployed to bootstrap the DAO (see PGP 9: DAO Spendings)
Paladin is growing in strides and the core either has to triple in size or the DAO needs to take ownership of the products. In the spirit of decentralization we believe the latter is a necessary step.
Currently the protocol has four necessary groups:
- Treasury Management - which will have the heavy duty of maximizing revenues with protocol assets to create a base yield for the Chest. ( see PGP 8.1: Treasury Management Committee).
- Business Development - It has become obvious that vote lending is a business catalyzed by constant market canvassing. This is very time consuming, and we don’t believe the core team should dedicate as much resources as is needed on this. The goal will be to create a guild rewarding whitelisted contributors who bring in loans and Quests to the DAO (see PGP8.2: BD Working Group).
- Content Creation is the bread and butter of any protocol. We have been extremely impressed by the creativity of our community and believe we should introduce a standardized way of rewarding them (see PGP8.3: Creative Guild).
- Development: Creating new dapps and maintaining already existing ones. We don’t feel ready to start giving up control on this as we still have a LOT to dish out and want to take our time and do this right, which no protocol has found how to do yet.
Now this is the big one folks. Handing over smart contracts means the community needs to be autonomous and contributors involved enough to be reactive. We are not there yet and need to prove more resiliency before parameters management is led by a community multisig. Let’s try and make this happen in the next nine months.
Lots to do folks !
PGPs will be added progressively during the week and linked to this post