Author:
Keefer Taylor [email protected]
Created:
10/21/2021
Status:
DRAFT
Lower the Amount of kDAO Escrow
This KIP follows the Signal Request (reproduced below) to change the escrow amount of kDAO needed to submit proposals.
The results were as follows:
80% - 1000 kDAO
40% - 500 kDAO
20% - 1,500 kDAO
10% - 2,000 kDAO
10% - 3,000 kDAO (No Change)
0% - <500 kDAO
0% - 2,500 kDAO
0% - Other
Accordingly, this proposal sets the escrow amount to 1,000 kDAO. This means that approximately 31 addresses will be able to produce proposals for Kolibri Governance.
Original Signal Request
See: Signal Request: Should the Amount of kDAO Required to Submit a Proposal be Lowered?
Details
Kolibri DAO uses an escrow mechanism to avoid spam proposals. The mechanism works as follows:
- A user puts kDAO in escrow when they submit a proposal
- If the vote achieves a minimum percentage of yay votes among opinionated voters (voters who voted ‘yay’, or ‘nay’ but not ‘abstain’) the escrow is returned to the submitter
- If the vote does not achieve a minimum percentage, the escrowed kDAO is confiscated and placed in the Community fund
- The minimum yay percentage is governable, and is currently set at 20%
- There is no penalty if a proposal fails or is cancelled from the timelock, as long as it achieved the minimum yay votes
This is an important feature for two reasons:
- Spam prevention: Only one vote can be underway at a time. If governance had nothing at stake, then malicious users could run a denial of service attack against the DAO
- Encourage off-chain coordination and conversation: Submitters want to be sure that votes submitted on chain have some support before doing so. This incentivizes them to coordinate with the community off chain, which creates more well thought out proposals, and means that proposals on chain are higher quality and more likely to pass.
Currently, the escrow amount to submit a proposal is 3000 kDAO. Excluding Hover Labs, there are 8 addresses that can currently submit governance proposals.
We may consider lowering this threshold to make it easier for the community to become more involved. This would increase DAO involvement and let the community take a more proactive role in governance.
If we accidentally lower it to the point where a malicious user starts spamming the DAO, eventually they will lose all their kDAO, and we can pass a governance proposal to increase the escrow amount (back to 3000 kDAO, or another number).
Possible changes are summarized in the following table:
| Escrow Amount | Number of Addresses that can Submit a Proposal |
|---|---|
| 3,000 kDAO (current amount) | 8 |
| 2,500 kDAO | 9 |
| 2,000 kDAO | 12 |
| 1,500 kDAO | 21 |
| 1,000 kDAO | 31 |
| 500 kDAO | 63 |
(Source)
A quick reminder on kDAO tokenomics:
- 1M total supply
- 15% airdropped to users in ecosystem
- 20% granted to Hover Labs
- 30% distributed in liquidity mining over 1Y
- 35% in discretionary community fund, controlled by the DAO
Since Liquidity Mining is an ongoing program, addresses will continue to receive additional kDAO over time.