DAO Control of Treasury Multisig

Google Doc Writeup

SUMMARY

This proposal will transfer ownership of the treasury multisig wallet from the genesis team to the DAO.

BACKGROUND

Since genesis, the Bankless DAO treasury multisig has been controlled by the genesis team. This is because the wallet had to be created before the DAO was launched and stabilized so that there would be a place to store the treasury.

We are now midway through season 1 and the DAO seems to have stabilized enough to allow ownership of the DAO treasury multisig from the genesis team to the DAO.

MISSION & VALUES ALIGNMENT

This proposal would further decentralized the DAO by transferring ownership from a “centralized” genesis team to the DAO.

SPECIFICATION

Timing & Tenure

One month before the start of a season elections will be held to determine the multisig wallet holders for the upcoming season.

Eligibility

  • Any DAO member is eligible to apply.
  • There are no term limits.

Election

  1. A forum post will be made to General soliciting applications.

  2. Applicants reply to the post with their application.

  3. After 7 days, the application period closes. If there are not 7+ applicants, applications will remain open until 7+ applications are received.

  4. A new post is then created for voting.

  5. Voting lasts for 7 days. DAO members will be allowed to vote for 7 candidates.

  6. The 7 applicants with the most votes are submitted to the DAO for approval via a snapshot vote

  7. Voting lasts for 7 days and quorum is 20%+ of BANK

  8. If the vote passes

  9. New multisig wallet holders are added

  10. Existing multisig wallet holders that will not be on it for the next season are removed

  11. If the vote fails

  12. Ops Guild gets feedback from the DAO and ensures the feedback is disseminated

  13. The election process takes place again. Anyone is free to reuse an existing application

  14. The existing multisig wallet holders remain until new holders are elected

Application

  • Discord handle
  • Reason for applying
  • Describe your involvement thus far at BanklessDAO
  • Qualifications - What will you bring to the committee?
  • How many hours can you commit to the DAO per week?
  • Sponsor(s) (i.e. people who will second your nomination. The more the better)

Removal of a Signer

  • If a multisig wallet holder becomes inactive or acts against the best interests of the DAO, they can be removed with a super-majority vote from the other multisig wallet holders

Special Elections (Added 8/31/2021)

  • Multisig wallet holders can initiate a special election to fill any vacant seats, provide the special election would not overlap with the election for the next season.
  • Special Elections would follow the same process as season elections, except the election would be for the number of open seats and DAO members would get votes equal to the number of open seats.

FINANCIAL IMPLICATIONS

  • The DAO will have to pay a transaction fee to update the signers.
  • The DAO members that have the authority to distribute treasury funds will change.

NEXT STEPS

  • Conduct election for new multisig owners
  • Update multisig

POLL

  • Approve - Move on to next steps
  • I want to do this, but have feedback on the proposal (please comment with feedback)
  • Reject - I don’t want to do this regardless of the specifics of the proposal

0 voters

1 Like

What’s the definition of a super majority vote?

Supermajority would be 60%+ (i.e., 5 of 7, though if you’re voting to remove someone it’s really 5 of 6 since I doubt someone would vote to remove themselves).

The thought was that removing someone that was elected by the DAO should have strong support.

For the eligibility, would the applications have criteria for applicants? Would this allow a brand new member with no track record in the DAO yet to be as eligible as a deeply involved member who has been in the DAO for a while? I am for the idea of handing mulitsig over to the DAO, and also wonder if having a way to gauge involvement and commitment to the DAO for each applicant would be beneficial or not. I genuinely am not sure yet. I would like to hear what others think.

1 Like

I don’t think we need to formalize this. With so many well known active contributors, the curation will happen naturally.

1 Like

That makes sense now that you put it that way. The process should take care of itself. Thank you for your perspective!

Why not move control to $BANK vote and have stewards people can give voting power in? If it doesn’t make sense to do that right now what’s the threshold for when doing so would make sense?

If we do move forward with a multisig:
If a multisig holder is removed, what is the process for replacing them?
Why is it only the other multisig holders that can remove another holder? Should there not be a process for a community recall and what would that look like?
Is there any expiry to the term for a multisig holder or is the term indefinite?

The multisig wallet holders are ultimately beholden to the DAO. However, we need a group of people to sign transactions. I don’t think there’s a way right now to directly integrate with snapshot to automatically disburse funds.

It would be the same process as the initial election. If the election would overlap with the election for the next season, I think we’d operate with a small group of multisig signers until the election is complete for the next season. I’ll edit the post to clarify.

I’m not opposed to allowing anyone in the DAO to vote to remove someone. My thought was that a multisig wallet holder is only one of seven, so they shouldn’t be able to take actions that would impact the whole DAO and the DAO overall might not really know. The other multsig wallet holders would likely be the people that would know when someone becomes inactive, starts voting counter to the DAO, etc. Finally, all the holders were elected by the DAO, so I think they are sort of representing the DAO in this context.

Terms would be for one season, but there are no term limits.

Thank you fast reply. I guess if someone that isn’t a multisig holder thought that someone should be removed there’s ways of bringing it up within the community and gauging everyone’s feelings on it

Moving to archive. Please reply to reopen.