I propose we establish a governance process for the Frax protocol to be approved by FXS holders. The goal of the process is to create legitimacy and an agreed upon framework for Frax governance. If there is support for this approach, I’d like to gather feedback and synthesize everyone’s input into a final proposal.
Here is a starting place for the discussion:
Proposal Development and Discussion
With the exception of non-controversial parameter adjustments by Frax developers, all proposals must be posted to this forum and have a discussion period prior to vote. I’d propose a 7 day period for non-governance or emission related proposals and a 14 day period for governance process changing proposals or changes to emissions or supply of FXS. The objective is for there to be ample time for discussion and debate around any proposed changed, especially changes to the governance process or FXS emissions. All forum posts of proposals should include a forum vote for feedback and signaling. Rather than spend too much time trying to define the exception of “non-controversial” parameter adjustments, it’s probably easier for the community to vote and change the exception if they feel it’s abused.
Final proposals must be posted on this forum under the FIP category. Links to the Snapshot vote need to be included on the same thread.
Voting Process
While we can later transition to the FRAX governance contract based on Compound’s Governor Alpha, votes currently take place on Frax’s Snapshot. We should have a minimum period for any vote - I’d suggest 3 days to start. A simple majority (50% + 1) wins the vote. I suggest that we restrict final Snapshot votes to binary votes and avoid possible gamesmanship of vote-splitting.
Quorum
We need to make sure a minimum number of FXS vote on any proposal, ideally with a higher threshold for votes that change the governance process. I’m also wary of setting the quorum too high and then not being able to get anything done. I’d suggest starting quorum levels of 5% for standard proposals and 10% for governance related proposals. I’m tempted to go 10% and 20% respectively but it’s probably better for us to raise if necessary. The most recent closed proposal received 12-13% voting of the liquid supply but that was the highest by far.
TLDR - Let’s adopt a governance process:
- Proposals must be discussed on this forum for a minimum period of time before initiating a vote
- Votes must last for at least 3 days on Snapshot
- A quorum must be reached for votes to be valid. Votes to change the governance process require a larger quorum.
Have I missed anything? Please let me know what you think. I’d like to gather feedback and create a final proposal for the community to vote on.