- Against this proposal
- In favor of this proposal
Formalize the following essential components of the 1inch DAO:
Create a treasury for the 1inch DAO.
Delegate a sustainable revenue stream towards the 1inch Treasury.
The 1inch DAO currently does not have an official DAO treasury. This proposal aims to create a treasury as well as secure a long-term, sustainable, revenue stream for said treasury.
At inception, all funds allocated to the 1inch Treasury will come from the existing protocol spread surplus revenue stream.
1inch Treasury funds will reside in the Gnosis Safe smart-contract-based multi-sig wallet and will use the SafeSnap plugin to allow for the DAO’s Snapshot vote to execute trustless on-chain transactions.
As it stands, the 1inch DAO is not officially in control of any funds and has no enshrined mechanism to accrue capital. There is an urgent need to create a treasury, secure a long-term income stream for that
treasury, and formalize how the treasury will be controlled in a decentralized and trustless fashion.
Create a Gnosis Safe smart contract wallet with multi-signature (multisig) functionality on the Ethereum mainnet — this address will function as the 1inch Treasury.
The Gnosis Safe multisig owners will initially be selected by the 1inch team and will consist of team members, advisors to the project, and influencers within the broader DeFi space. These will be a safeguard at launch, the DAO will have the ability to remove them using the formal voting process in the future.
Once the Gnosis Safe is created, the SafeSnap module will be incorporated. SafeSnap will allow for on-chain execution of votes that passed the formal 1IP process.
At the beginning, the Gnosis safe multisig owners will have the ability to veto malicious transactions in an m-of-n fashion.
Currently, all revenue generated by the 1inch Aggregation Protocol’s spread surplus is used to fund Governance rewards distributions. This proposal will redirect the entirety of this revenue stream to the
1inch Treasury. There will be no APY earned by staking on Governance, unless the DAO votes to re-implement that function at a later date.
A treasury is a central component for the successful function of any DAO. A treasury allows the organization to fund the development and execution of members’ proposals.
The creation of the official 1inch Treasury, along with the allocation of a sustainable revenue stream, is critical to the long-term success of the 1inch DAO and ultimately the 1inch Network. This will be a major step towards mature community governance and the further decentralization of the protocol.
By utilizing SafeSnap, the 1inch DAO will move to the forefront of decentralized governance. SafeSnap will allow for gasless Snapshot votes to execute on-chain transactions. This approach captures the benefits of free off-chain voting, while simultaneously preserving the trustless aspect of on-chain executions.
Potential drawbacks center around the fact that funds within the 1inch Treasury will require a formalized 1IP in order to be accessed. This is great for decentralization of the protocol, but also adds friction to the process of spending funds. If governance participation drops below the quorum requirement, then it will be difficult for the active members of the DAO to spend treasury funds.