As discussed on recent calls, the governance process has become less consistent and less secure than is ideal for MakerDAO and the Maker Protocol. We considered two solutions to this issue, Governance Rewards, and Delegation. Based on the complexity and danger of Governance Rewards, we have chosen to focus on Delegation as the near-term solution to the recent issues.
Over the next few weeks, @hexonaut and @Derek will be coordinating the required smart contracts and front-end work to allow delegated voting in the Maker Protocol. We are pursuing a simple and robust implementation that can be implemented quickly in both the Smart Contracts and UI domains.
A delegate voting contract can be created by any address. The creating address becomes the permanent delegate for that contract. Once a delegate voting contract is created, anyone (including the delegate) can add MKR to the contract at any time. Any address that has added MKR to the delegate contract may withdraw the same amount of MKR at any time.
The delegate address only has the ability to vote with the MKR locked in the contract. It does not have the power to move the MKR at all - even to return it to the owners.
Users who lock their MKR into the delegate contract will also be able to take advantage of governance rewards when / if they are implemented.
Each delegate contract will be able to vote in both on-chain polls and executives.
The interface will be available on vote.makerdao.com and will display a list of official (constructed via a factory contract, so that voters can trust that the delegation contracts are legitimate) delegation contracts.
MKR Holders may select any address from this list and delegate their MKR to that address. MKR Holders will also be able to withdraw their MKR from their delegate using this interface.
Delegates will be able to vote on polls and executives using existing user interfaces.
GovAlpha will be working to ensure that there is a solid set of initial delegates for MKR Holders to choose from when delegating their MKR. We will reach out to those that display interest and together arrive at some guidelines and best practices for being a delegate.
In later UI versions, information on each (willing) delegate will be collected by GovAlpha and displayed prominently on the UI. We hope to keep track of and display metrics such as:
- Incentive Alignment (to the Maker Protocol)
- Attention (voting frequently, staying engaged)
- Communication (communicating reasoning effectively)
By doing this, we hope that we can ensure delegate quality and safety for MKR Holders that don’t have a personal or professional connection to their chosen delegate. We imagine that these metrics will become important for any publicly accessible delegate within MakerDAO to maintain.
These metrics (or lack thereof) will never be used to prevent delegates from voting.
GovAlpha will also be producing guidelines for both delegates and MKR Holders communicating both expectations for delegates and what MKR Holders should look for and think about when choosing one or more delegates.
If you are interested in being a delegate please reach out to me publicly or privately.