DIP-1 - Governance Scope

Proposals (DIPs)
1

This proposal defines the scope of dexie’s governance.

Overview

dexie can be divided into three main areas: operations, development, and the treasury/DBX economy. dexie is not an entirely autonomous protocol: While exchanging assets via offers is fully decentralized and peer-to-peer, the Core Team manages Splash! indexers, hosts the user interface, and handles development.

This proposal aims to limit the governance scope to the treasury/DBX economy. It ensures that dexie can iterate quickly without lengthy governance discussions on UI or operational details, while DBX stakeholders maintain control over financial aspects.

dexie’s treasury, which accumulates various assets from fees, is owned by DBX stakeholders, who decide how to utilize the capital. This could involve investing part of it to earn an additional return, distributing dividends, or executing DBX buybacks and token burns — all managed collectively through the governance process.

The Scope

dexie’s governance must strictly relate to decisions surrounding DBX tokenomics, distribution strategies, and the management and allocation of dexie’s treasury. Day-to-day operational decisions, including development, UI, and other non-financial aspects, will remain the responsibility of the Core Team.

Governance encompasses, but is not limited to:

  • Changes to DBX tokenomics and distribution
  • Treasury fund allocation and investment strategies
  • Initiatives for liquidity incentives
  • Partnerships and integrations with other DeFi projects (eg. project token swaps)
  • Issuing grants or rewards for contributions
  • Adjusting the monthly team DBX distribution
  • Major contractual changes or agreements impacting the treasury or DBX

Changes to the scope

This proposal is not static and can be amended through the governance process itself. Any proposed changes must undergo the same discussion and voting process as other governance proposals.

Snapshot vs. On-Chain voting

While the initial bootstrap phase is exclusively based on snapshot voting, governance will eventually incorporate both snapshot and on-chain executions, depending on the context. Transparency is key; as long as everyone can verify vote results and subsequent actions, the project’s integrity is ensured. In the future, certain actions, such as accessing treasury funds, will always require an on-chain vote enforced by code.

Voting Process

Every DBX token holder is eligible to vote on this proposal once it moves to the voting stage. TibetSwap DBX LP token holders can vote based on the conversion rate at the time of creating the snapshot. The result will be determined by a majority vote.

Discussion and Feedback

This governance proposal is now up for discussion and will move to a snapshot vote after community feedback. Please review and provide your input to help shape the final version. More related proposals will follow.

9 Likes
2

I agree with the proposed scope of the governance. In the ever-changing world of crypto it is vital not to hinder the continuous development of new functionalities of the platform, while leaving a range of non-technical decisions to the community.

7 Likes
3

I also agree with the proposal for governance scope.

Will there be a way for wXCH (warped XCH) holders to take part in the voting process?

4 Likes
4

Do you mean wDBX? At the moment, no, but in theory, it’s possible to implement. The current supply of wDBX is about 8k.

5

I agree with the proposed scope of the governance.

4 Likes
6

Good idea to limit the scope first, but still let it be extendable in the future (“Changes to the scope”) should dbx holders seek more participation.

2 Likes
7

Yes I meant wDBX lol

Related to the consideration for wDBX, what about expanding the scope of governance proposals to encompass changes to the voting process itself?

For example:
Are there controls in place to ensure the addresses holding the non-circulating supply of DBX are ineligible for voting? And should the warp.green held DBX also be ineligible for voting if wDBX voting support is implemented? I think these are questions that could be appropriate addressed by a governance proposal.

2 Likes
8

I supported limiting the scope for now, but I see the potential for future expansion. I think the idea is related to DBX tokenomic as well? This could benefit a growing community of wDBX holders on other blockchains.

9

I think the current code only allows votes from DBX with a standard P2 inner puzzle. That means that, even if TibetSwap and warp.green reserves are included in the snapshot, they cannot be used to vote.

1 Like
10

These are important points.

Uncirculated supply is not allowed to vote. While this rule is not technically enforced, everyone would be able to notice an uncirculated address at the top of the ballot list. Addresses containing the uncirculated supply are filtered when creating the snapshot, so they not even show up as Outstanding.

The addresses containing the uncirculated supply are listed at the bottom of https://dexie.space/dbx.

Correct, and to allow for voting with TibetSwap DBX LP tokens, we take a CAT snapshot of TibetSwap DBX LP holders, convert their balance to the corresponding DBX amount, and add them to the ballot list. They can then vote and appear as if they have DBX. This is not possible for the reserves because no one can sign from the address where the reserves are held.

1 Like
11

Appreciate the clarifications!

It’s definitely related to tokenomics, but I can envision future proposals around voting weights, caps, sybil/DID rules etc.
I don’t feel strongly about including this in the scope either way given the governance scope itself is amendable through the governance process itself, and I don’t foresee such proposals happening in the short term.

1 Like
12

Thanks for the feedback!

DIP-1 is now officially open for voting: https://dexie.space/governance/4000eb96fe9a22e0b72c56b610a4cac6e427fd1f1819be4259c4bb79f19fb2a4

The vote will run for one week (until block 5615841).

2 Likes
13

Sorry for the stupid question, but I can’t find something on how to vote. How to do it?

14

Hi! No worries it’s not stupid. Voting for DIP-1 has already finished and the proposal was approved by dexie DAO. Stay tuned for future proposals!