Open Onchain Governance: DAOlationships Celebrates Delegation Week with Tally
gm governerds! We are DAOlationships, a collective dedicated to nurturing strong, effective, and meaningful connections within the DAO space. We are thrilled to participate in a significant event that aligns perfectly with our mission. That event is ‘Delegation Week,’ hosted by our friends at Tally. Delegation Week is a five-day ecosystem-wide event from May 22nd to May 26th, dedicated to DAO governance engagement.
In the realm of DAO governance, ‘delegation’ refers to the act of token holders entrusting their voting power to selected representatives, aptly termed as ‘delegates’. These delegates earn their status through active participation within the DAO governance, showcasing their expertise, and gaining the trust of token holders. Their journey often includes a history of significant community contributions, a deep understanding of protocol intricacies, and a consistent advocacy for token holder interests. This established reputation and proven dedication positions them as ideal candidates for token holders to delegate their voting power to.
The essence of Delegation Week is to create an open platform for the entire governance ecosystem to participate. This includes everyone from token holders to delegates to DAOs to DAO tools. The event is designed to encourage participation and collaboration, with the ultimate goal of creating a more robust and resilient framework for decentralized DAO governance. It’s about recognizing the value that each participant brings to the table and creating opportunities for everyone to contribute to the growth and development of the ecosystem.
In this blog post, we aim to provide an in-depth overview of Delegation Week, shedding light on its purpose, the key players involved, and its impact on the DAO space. We will highlight the principles of openness and on-chain governance and explore how these principles align seamlessly with our mission at DAOlationships.
Purpose of Delegation Week: Championing On-chain Governance with Tally
Delegation Week, hosted by Tally, serves as a beacon for on-chain governance, illuminating the path towards a future where DAOs can attract and retain a diverse array of stakeholders. This includes customers, users, and liquidity providers, all integral components of a thriving DAO ecosystem.
Tally’s vision is not merely a theoretical construct; it is a tangible reality woven into the very fabric of their operations. The platform is steadfastly committed to the development of tools and platforms that simplify and enhance the process of on-chain governance. Their offerings are meticulously designed to empower individuals and organizations, enabling them to audit protocol changes and exercise veto power over the use of treasury funds.
In a collaborative effort with OpenZeppelin’s ‘Governor’, Tally has crafted some of the most effective systems for powering on-chain governance. These systems go beyond the mere facilitation of transactions; they cultivate transparency, endorse accountability, and guarantee that every voice within the space is acknowledged. As we celebrate Delegation Week, we acknowledge and appreciate the significant role Tally plays in driving the evolution of the DAO ecosystem, making it more open and inclusive.
Exploring Tally’s Tools: Powering On-chain Governance
Tally’s commitment to on-chain governance is reflected in its tools and integrations. One of these integrations is OpenZeppelin’s Governor, a smart contract framework that enables DAOs to avoid technical reliance. It’s open-source, modular, and can be implemented by any team, fostering an environment of collaboration, even amongst competitors. @0xfrisson, Tally’s Head of Marketing, explains this in depth in the following video.
Another noteworthy tool is Tally Zero, a completely decentralized voting application. It utilizes React and IPFS via thirdweb, allowing users to connect to any governor address and vote on a proposal in a completely decentralized manner. This tool embodies Tally’s commitment to empowering individuals and organizations, enabling them to participate actively in on-chain governance.
In addition to these tools, Tally has also integrated with Safe, a decentralized custody protocol and collective asset management platform on Ethereum. Safe is commonly known as a multi-signature wallet, allowing an organization to define a list of owner accounts and set a voting threshold for a transaction to be confirmed. This integration is particularly important as DAOs increase in scope and popularity, and there’s more scrutiny surrounding them. Safe allows another level of account abstraction between the individual and the entity that is voting in the DAO, providing an extra layer of security.
Tally’s suite of tools, including OpenZeppelin’s Governor, Tally Zero, and the integration with Safe, are designed to empower individuals and organizations in the DAO ecosystem. They facilitate on-chain governance, foster transparency, promote accountability, and ensure that every voice can be heard.
Participation in Delegation Week: A Guide for Token Holders, Delegates, and DAOs
For Token Holders: Empowering Your Governance Tokens
As a token holder, Delegation Week offers you the opportunity to exercise your governance rights in DAOs on Tally. By visiting your dashboard, you can review and manage your delegations, ensuring your voting power is assigned to the delegates that best represent your interests. During Delegation Week, certain DAOs are sponsoring free delegations for eligible users, covering the gas for delegation while supplies last. This initiative is a testament to the spirit of Delegation Week, making it easier for you to participate in the governance of your DAOs.
For Delegates: Amplifying Your Influence
If you are a delegate, or aspire to become one, Delegation Week is an excellent opportunity to connect with new and existing token holders. To make the most of this event, ensure your Tally profile is up-to-date with your name, profile picture, social media handles, and delegation statements for your DAOs. During Delegation Week, engage with the community on platforms like Twitter, Discord, or DAO forums to request delegations and expand your influence.
For DAOs: Fostering a Vibrant Governance Ecosystem
All DAOs are invited to participate in Delegation Week! If you are part of a DAO, you can contribute to this event in several ways. Join the Delegation Week planning community calls, inform delegates about the event and how to prepare, and starting May 22nd, encourage token holders to participate in Delegation Week by updating their delegations.
The Spirit of Delegation Week: Permissionless Participation
Delegation Week is an event for everyone in the DAO ecosystem. It is built on the principle of permissionless participation, encouraging everyone to bring their ideas to the table. If you have an idea for Delegation Week, we encourage you to bring it to life. Delegation Week is about coming together as a community to celebrate and strengthen decentralized governance.
The Events of Delegation Week (Twitter Spaces)
The event kicks off with an “Introduction to Delegation” on May 22nd, setting the stage for the week’s activities. This session is designed to familiarize participants with the concept of delegation and its role in DAO governance. It’s an opportunity to understand the mechanics of delegation and the value it brings to the space with Guest Speaker Shawn Grubb, Gitcoin’s Governance Lead.
Following the introduction, the spotlight shifts to Gitcoin, a platform that leverages the power of blockchain technology to fund open-source projects. This “DAO Spotlight” session is an opportunity to delve into the workings of Gitcoin, understand its governance structure, and learn about its contributions to open-source projects
As the week progresses, participants will be treated to a “State of Delegation Report” by the DAO Research Collective (DRC). This report will provide insights into the current state of delegation in DAOs, highlighting trends, challenges, and opportunities. It’s a must-attend session for anyone interested in the dynamics of DAO governance.
The following days will feature DAO Spotlights focusing on a variety of organizations, including Arbitrum DAO, Uniswap, Pool Together, Hop Protocol, and ENS. These sessions will provide a deep dive into each DAO, exploring their governance structures, their achievements, and their plans for the future.
One of the unique aspects of Delegation Week is its focus on inclusivity. This is evident in the session titled “Why Delegate to a Student Organization?” scheduled for May 26th. This session will explore the value that student organizations bring to the DAO ecosystem and why they make excellent delegates.
In addition to these scheduled events, Delegation Week also provides opportunities for delegates to review their profiles, for voters to review their delegations, and for DAOs to activate their token holders. It’s a week of learning, networking, and celebrating the power of decentralized governance.
Delegation Week is not just for the seasoned “governerds”; it’s for everyone. Whether you’re a token holder, a delegate, a DAO, or just someone interested in decentralized governance, there’s something for you in Delegation Week. So, join us as we embark on this exciting journey into the world of DAO governance.
Twitter Spaces Schedule: https://delegationweek.com/
The Incentives for Delegates
Delegates are motivated by a mix of intrinsic and extrinsic incentives. These incentives can be broadly categorized into two types: monetary compensation and non-monetary rewards.
Monetary compensation refers to the financial benefits delegates receive in exchange for their work. This compensation can take various forms:
Cash: This is the most direct form of compensation, typically provided in stable or other currencies. Many DAOs offer this type of compensation to their delegates.
Ownership: Delegates may also receive less liquid tokens that represent ownership and governance rights within the DAO. This is similar to equity in a startup, although it doesn’t necessarily carry the same regulatory implications.
Governance Power: In many DeFi-related governance models, the tokens that delegates receive not only have monetary value but also grant them governance power within the DAO.
Non-monetary rewards, on the other hand, are less tangible but equally important. These rewards include:
Reputation: Serving as a delegate can significantly enhance one’s reputation within the DAO community. Being elected and recognized as a delegate during Delegation Week, for instance, is a powerful reputation-building event.
These incentives collectively contribute to the value that delegates receive for their contributions, making the role of a delegate both rewarding and influential.
Types of Delegates
Delegates can be broadly categorized into four types based on their background, expertise, and organizational structure:
Professional delegates: These are individuals or organizations with a proven track record in web3 (or, occasionally, TradFi). They usually possess extensive technical knowledge, experience in web3, DeFi or blockchain, and a strong reputation for acting in the best interest of the community.
Individual delegates: Individual delegates are regular users of the web3 platform who possess a strong understanding of the protocol and actively participate in the governance process.
DAO delegates: A different (and somewhat new) category, DAO delegates are specialized DAOs with direct experience and expertise in their advising field, DAO governance itself.
Service provider delegates: These are organizations or companies, such as venture capital firms, asset management companies, or crypto research firms, that have a significant stake in the web3 project and participate in the governance process.
Token holders can choose to delegate their voting power to any of these types of delegates based on their trust, expertise, and alignment with their own interests and values. By leveraging the strengths of different delegate types, the web3 ecosystem can foster a balanced and inclusive decision-making process.
Understanding the Stages of DAO Decentralization: From Proto-DAOs to Mature DAOs
The world of DAOs is dynamic and ever-evolving. As we navigate this landscape, it’s crucial to understand the different stages of DAO development and what they mean for on-chain governance.
The concept of ‘proto-DAOs’ was introduced by Stefan from Govern. Proto-DAOs are essentially DAOs in their infancy. They represent the initial stages of a DAO’s life cycle, where human intervention in execution is still necessary. These DAOs are on the path to becoming fully autonomous, but they haven’t quite reached that point yet.
On the other end of the spectrum, we have ‘mature DAOs’. These are DAOs that have reached a state where they can function sustainably without any human intervention at the execution layer. Achieving this state is not an easy feat. It requires a deep understanding of the protocol, a strong governance structure, and a community that is aligned in its vision and goals.
The journey from a proto-DAO to a mature DAO is not a linear one. It’s more about the path to getting there and whether it’s acceptable for proto-DAOs to exist in the first place. It’s about understanding that it’s okay to be a proto-DAO, as long as there is a clear path towards becoming a mature DAO.
However, it’s important to be wary of ‘pseudo-decentralization’. This is when a DAO claims to be decentralized but doesn’t have the governance structure to back it up. If a DAO is using the term ‘DAO’ but there isn’t real traction towards achieving a state of mature governance, it can be a red flag.
In essence, if you’re going to engage with a DAO or any on-chain product, you need to understand how it’s governed. You need to know whether it’s a proto-DAO, a mature DAO, or somewhere in between. Only then can you make informed decisions and contribute effectively.
Final Thoughts: Reflecting on Delegation Week and Its Impact on DAO Governance
Throughout this overview, we’ve explored the various facets of Delegation Week. We’ve examined the role of Tally as the host of the event, the importance of delegation in DAO governance, and the tools that facilitate on-chain governance. Among these tools, Tally Zero stands out as a completely decentralized voting application, embodying Tally’s commitment to empowering individuals and organizations. The integration with Safe, a decentralized custody protocol, adds another layer of security, reflecting the importance of privacy and security in the DAO ecosystem. Furthermore, the collaborative effort with OpenZeppelin’s ‘Governor’ showcases the spirit of collaboration, even amongst competitors, which is central to the ethos of Delegation Week.
We’ve also highlighted the different types of delegates, the incentives that drive them, and the stages of DAO decentralization. Each of these elements contributes to the richness and diversity of the DAO ecosystem, and they all come into focus during Delegation Week.
As we conclude this exploration of Delegation Week, we extend an invitation to you to join us in this celebration. Whether you’re a token holder, a delegate, DAO contributor, or simply someone interested in decentralized governance, there’s a place for you in Delegation Week. It’s an opportunity to learn, to connect, and to contribute to the growth and development of open on-chain governance.
