Right now 1inch fees from the aggregation protocol has a default split as below:
33% Referrers
33% Operations
34% Governance
I think there is already wide consensus within the community that:
The governance rewards (1inch holders) must be atleast 75%.
The default vote should be set 0-0-0 and the UI should make the user input numbers manually in order to vote
Binance (who is a 1inch VC and has 42.5% voting power as of now has voted the default 33:33:34 and this SHOULD BE REMOVED COMPLETELY since there is clear conflict of interest here. Also, this vote does not represent the what the community really wants. This is proven in the fact that even with the 42.5% Binance vote supporting 33:33:34, the total percentages are still at 28:29:43 which shows that the remaining votes (actual 1inch holders) are OVERWHELMINGLY AGAINST 33:33:34.
I also understand the importance of referrals & operations part of it but the team is already VC backed and will also be getting a HUGE majority of tokens for running the protocol. The current percentages seem a bit too greedy and are clearly not aligned with the 1inch holders’ interests.
There should be a fair vote for the percentages from the community and that can ONLY happen if Binance (1inch’s VC with 42.5% voting power) is excluded from the voting process and the default 33:33:34 vote is changed to 0:0:0.
Summary of what is proposed: 1) Disabling automatic voting altogether AND also revert any automatic votes already in. 2) Change default UI to show 0:0:0 instead of 33:33:34
EDIT 1:
@ [GatheringGwei] brought to my notice that Binance did not actually make the vote and all non voters automatically vote the default percentages set by the team, i.e. 33:33:34. So I would like to accept the suggestion of disabling automatic voting altogether AND also revert any automatic votes already in.
I’m 100% supportive. Team wants to have at least 30% of revenue to support operations and I’m fine setting up a range for Team between 20-50% and referral range of 0-10%. My ideal weights are 5/25/70 ref/team/gov that should align interest of all parties.
Summary: remove default voting and adjust allocation bands to garantee some income for the team
I would like to propose for the Governance Staking contract rewards to be Auto Compound so we don’t have to spend gas just to do that.
Or
Dropped in our wallet would be nice if possible idk
It seems like the default distribution of votes for inactive users need rethinking or removing. I’m not sure if it has come up elsewhere but it would be good to set up some sort of snap-shot system for voting to eliminate gas costs. Governance participation needs to be incentivized since people spend time and effort lurking on the forums to learn what the vote means. Added gas costs are a deterrent.
Go ahead with the project. A maximum percentage vote limit should be implemented in governance voting. At stake do what you want, but do not abuse in governance.
Setting the governance reward paid to 1INCH holders at 75% would be unfair towards other parties, in the first place.
We cannot set the default vote at 0-0-0 because that would create an unfair advantage for users who are not interested in protocol governance and just stake their tokens for a financial gain. As @k06a recently tweeted: we want 1INCH stakers to be responsible for the system configuration. https://twitter.com/k06a/status/1350008334968086530?s=12
Please, bear in mind that tokens held by Binance as 1inch’s VC, as well as those held by the team, are locked for a substantial period of time and have no voting power at this point. The Binance tokens you are referring to are held by Binance users, and any complaints about possible abuse on their part should be directed to Binance rather than 1inch.
Whats the point of having a DAO & a vote if you or the team has to decide whats fair and whats not?
Are you serious? Having ANY PRE DETERMINED values is what is unfair. What is proposed is to have 0-0-0 displayed as default and if somebody doesn’t vote this value doesn’t get counted. Even if by default it gets counted, the overall vote is not affected by these 0-0-0 values since its the same for all parameters - “0”.
COMPLETELY WRONG.
Binance has NOT VOTED at all. 1inch has taken no vote as a vote for 33-33-34 which is COMPLETELY UNFAIR and borderline scammy. What the team has basically done is set a default value that suits them and anyone (like Binance) who doesnt vote (ethically meaning 0-0-0) by default votes 33-33-34.
In other words Binance did NOT vote for 33-33-34 but the team is still counting it as a 33-33-34 vote. NOT ETHICAL IN THE SLIGHTEST!
I don’t agree with @Natalia, that 75% is unfair – market should decide what fair and what is unfair. But now I see system is balanced and everyone (even those who not voted) is resposible for the current shares distribution. I afraid that changing this fragile balance could make it completely unbalanced and make gov reward 99%, but you will be less incentivised to raise such a question on this forum and team will fight alone with this unfairness.
I like that right now everyone is responsible for own votes and even default votes. This also excludes passive participants to avoid taking responsibilities for their decisions to non-vote.
These 2 sentences are contradictory. Either let the users/markets decide or don’t have a DAO. You can’t say that you want complete control over 1inch decisions but also have a DAO & a token.
I don’t have an issue with default votes. But why does the team single handedly get to decide that all default votes go 33-33-34? I suggest we have a community vote on the default vote percentages with a few options like 0-0-0, 15-15-70, 25-25-50, 33-33-34 and 40-40-20. Whatever the users choose, implement that!
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