[1IP-4] 1inch Network Treasury

[1IP-4] 1inch Network Treasury

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Stage 1 Post

Summary

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.

Abstract

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.

Motivation

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.

Specification

Treasury Creation

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.

Gnosis Safe + Snapshot + SafeSnap

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.

Revenue Stream

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.

Benefits

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.

Drawbacks

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.

5 Likes

Awesome to see this treasury idea start the enter into the next phase of the governance process!

A proper treasury is a core, and in my opinion most important, component to a functional DAO.

I love the revenue stream and SafeSnap components of this proposal:

Revenue Stream – This will scale with the 1inch Aggregation protocol’s usage and fee accrual. Other DAOs have gone the route of funding themselves purely through token issuance, but that isn’t longterm sustainable.

SafeSnap – This is the best way to give the DAO direct control over the treasury since it uses gasless voting and avoids the L1 fees associated with on-chain voting.


I’m excited, this is the biggest step towards decentralizing the protocol to-date!

1 Like

I loved the discussion during the stage-1 phase of this proposal. I fully support this idea and hope that we can start publishing community-supported proposals more publicly (blogs, social media, etc). This will be a critical step to getting enough participation for proposals to pass.

2 Likes

You Should have done it over the Main DEX UI . Proposals that are in Stage - 2 & are Made official by 1INCH team should be Seen in front UI of DEX . Many Ideas were shared in this Governance Forum but still no Update on it . Seems like Team doesn’t care about it that Much while the Main Reflection of 1INCH itself is Governance & Topics like these won’t gain the traction .

What do you mean Rewards will be gone ? Will there be no more rewards of staking 1INCH with upcoming treasury ? Please clear the confusion …

@Natalia I’m a Bit Dissapointed how you actually took 0 Points suggested by community in STAGE - 1 disscusions to enhance the Treasury Model & Income Structure . Hate to say it but this seems more like a rugged approach .

Ofcourse that’s why to Ramp Up the Governance Participation this Point was Suggested to include

1 Like

Anyway What’s the Point of Stage - 1 Discussion if nothing of that discussion gets implemented or added into ?

1 Like

Proposals that are in Stage - 2 & are Made official by 1INCH team should be Seen in front UI of DEX . Many Ideas were shared in this Governance Forum but still no Update on it .

Fair points. The team is working on improving our transparency and also developing a more formal structure for the governance approach.

But to be clear, anyone can create a Stage 2 proposal, and anyone can start a Stage 3 snapshot vote 5 days after the Stage 2 proposal (assuming the Stage 2 proposal’s temperature check went well). If anyone wants to see the further development of any of the other ideas, they’re encouraged to make a Stage 2 post.


I’m a Bit Disappointed how you actually took 0 Points suggested by community in STAGE - 1 discussions to enhance the Treasury Model & Income Structure .

1IPs should be as narrowly focused as possible, so, 1IP04 is focused on the creation of the treasury and its initial income structure. This 1IP does not call for any particular usage for those funds (no trading strategy) – all of that will be controlled by the DAO via the 1IP process.

Anyway What’s the Point of Stage - 1 Discussion if nothing of that discussion gets implemented or added into ?

A lot of the feedback from the Stage 1 discussion was implemented. This is evidenced by the fact that the trading strategy and token burn aspects, which were a source of contention, are both totally removed from this proposal.

3 Likes

@Natalia @Tanz0rz When Snapshot ? Bumping the Thread

1 Like

0 Discussions . forum gone silent again . What a pitty

Treasury got recently deployed on Ethereum mainnet.

Please, read the blogpost for more details.

1 Like

Why it got deployed without a snapshot from stage 3 of this 1IP4 ?
You don’t trust your governance users ?

I think it was because the number of participants was unexpectedly small even for the management of 1inch.
I felt that if we followed the correct procedure with the current number of participants, the decision-making process would be unexpectedly slow.
Wasn’t there a stipulated number in the voting results?
Is it possible to reach that prescribed number with the current number of participants?

We go into more detail in the blogpost Natalia linked. Essentially, the 1inch Foundation recognized that the Treasury was a core piece of DAO infrastructure – you can’t really have a DAO unless the DAO has a way to fund the proposals it passes.

Since 1inch Foundation had control over the protocol revenue stream, they made the decision to turn it over to the Treasury and give control of that Treasury to the DAO.

Ofcourse not . The gap is so huge between governance voting that voting never passed previous 4M quorum forget 10Million .

Sergej say go to forum and put a proposal but devs are nowhere to see . They don’t even share concept wth community nor rectify the ideas already given .

1 Like

Everyone know that with current it will take more than 2 years for the treasury to be well sustained with a huge sum. Trading strategy is lifeline of Treasury yet nobody even @Natalia shared any more details over it even after so many quotes

Treasury has been live for a little over 2 weeks and already has $1.5 million in collected funds. This is the address: Gnosis Safe

These funds are collected from protocol Swap Surplus, so they are sustainable source of continuous revenue.

We de-coupled the Trading Strategy from the treasury proposal because it seemed like two separate ideas and proposals should be limited in scope.

I agree that a Trading Strategy will help make the Treasury even more sustainable. A trading strategy will need to go through the formal proposal process – the community should start a discussion on that topic.