Phase 3 Governance: Full Decentralization

With our latest successful comprehensive audit of Dollar Protocol (https://t.co/mKGAeEA8kZ?amp=)1, and the successful voting and execution of over 4 on-chain proposals and countless others, we begin our final transition to Phase 3 Governance.

As alluded to in our launch of seigniorage governor alpha, Phase 3 governance is full decentralization, where the admin upgradeability key will be handed over to the seigniorage governor alpha.

What this practically means is that the code is fully open-source and is controlled by the community via on-chain decision making using $SHARE as voting rights.

$SHARE Token Value

$SHARE is non-dilutive, composable, and incentive-oriented. We believe these to be important features as most governance tokens have nothing to gain and nothing at stake.

$SHARE’s value increases as the ecosystem grows, as growth equates to seigniorage, which equates to tangible incentives. In addition, $SHARE being non-dilutive allows early believers to grab a stake of the network while it is young, without fear of being diluted in the future. This is unlike some other single-token models where the governance token can be inflated by seigniorage. Lastly, $SHARE is composable, making it easy to integrate into other Defi applications, as well as exchanges.

Short Term Milestones Before Decentralization

In preparation for the admin-key ownership transfer, here are a few upcoming milestones (in the next 2 weeks).

1. addition of pool staking cooldown in addition to minimum staking seconds. Initially, these values will be 0 and 24H respectively but adding cooldown gives another layer of optionality to governance
2. addition of 1–1 xBond redemptions during positive cycles as well as minimum bonding and minimum cooldown periods. These are initially set to 0 respectively but can be modified by governance
3. launch of Yuan synthetic asset 🤫

Community members should participate in the discussion for naming the Yuan asset here: https://gov.dollarprotocol.com/t/name-symbol-for-yuan-synth/206/12.

Additional Notes

Now, Dollar Protocol also has added a couple of notable governance parameters.

1. ability to turn off/on debase
2. ability to whitelist user addresses for debase-immunity

Both of these parameters and more are currently in the governance tab.

1 is important as it gives the protocol governance community the ability to decide when the debase training wheels can come off. If the debase comes off too early, users can always revote to enable it, providing a guarantee of achieving peg.

2 is important because it allows the protocol to still enable the debase while whitelisting important addresses to be immune from debase. Prime examples of candidates of whitelisted addresses include partner applications (for Defi integrations). This will allow USDx to be fully composable with those addresses.

To get a full list of whitelist actions (and which addresses are whitelisted), users can simply query the LogDebaseWhitelist event on the USDx contract.

governance forum: https://gov.dollarprotocol.com

twitter: https://twitter.com/@dollarprotocol

telegram: https://t.co/Jsk1rD9JpD

discord: https://t.co/egR0fpDPzk