Financial Proposal: Wildfire DAO Request for Balancer Token (BAL) Governance Power Delegation

Proposal summary

Wildfire DAO, a Meta-Governance DAO is requesting that Aragon DAO delegate the governance power from the Balancer Tokens in the Aragon Treasury to the Wildfire DeFi Pod’s Multi Sig, at the time of writing this Aragon has 13,864 BAL tokens that are currently worth $82,768.08

Currently Aragon’s Balancer governance power is not being used in Balancer Meta-Governance, in addition to this Aragon could be leveraging its 13,864 BAL tokens to generate revenue from the bribe Marketplace called Hidden Hand that operates in the Balancer Ecosystem and other protocols such as Aura Finance, FRAX, Ribbon Finance and Tokenmak.

Wildfire is here asking to participate in Meta-Governance on Balancer on behalf of Aragon, and generate bribe marketplace revenue simultaneously.

What is Wildfire DAO?

Wildfire is a meta-governance initiative designed to help align incentives in Web3. Our growing team of contributors across the DeFi, Public Goods, Creator Economy, and Infrastructure Operator groups aim to tackle the challenges facing DAOs such as token design, governance, coordination, business development, growth and community building.

Wildfire DAO members across these four groups have begun to take the first steps towards achieving these goals through:

  • Connecting with the core teams & contributors on a recurring basis
  • Writing governance proposals
  • Participating in community calls
  • Updating the wider Wildfire network on protocol developments
  • Working with new projects to enable them to leverage Wildfire’s expertise

We are contributing to protocols that include Aave, Balancer, ENS, Element, Bankless, PleasrDAO, SuperRare, Rocket Pool, and more.

Wildfire was born out of Fire Eyes :fire:_​:fire:, a service DAO created by James Waugh, Coopahtroopa, 0xLucas, and gladstonecallum. Fire Eyes :fire:_​:fire: has been involved in DAO’s since 2017, helping create best practices for coordination and governance participation. This includes playinga vital role in the launches of numerous DAOs such as ENS, Gitcoin, and SuperRare, and has been an active participant in governance across other Web3 projects such as Aave, Balancer, and Rocket Pool.

Wildfire DAO has been created to help scale these contributions.

Wildfire DAO’s governance values.

We are active proponents of a Web3 world by supporting DAOs to enhance governance and by implementing meta-governance that increases decentralization and more community participation. We adhere to the following governance values in fulling this mission:

  • We strive to be net positive for the ecosystem in everything we do in a DAO.
  • We are strong advocates for decentralization and open source which ultimately increases more governance participation from a DAO’s community.
  • We strive to create more value for token holders and the entire community.
  • We take a zero tolerance policy towards discrimination based on gender, race, religion, age, sexual orientation, and any other factor that doesn’t determine people’s ability to be great contributors and governors.
  • We believe in transparency, and we operate collaboratively, within our DAO and with all DAOs we work with.

As DeFi Operators, we believe we have the skillset to create significant value for Aragon through this proposal.

Proposal description

Wildfire is requesting that Aragon delegate its BAL tokens to Wildfire DAO for the following reasons

  • To ensure that Aragon’s Balancer Tokens are represented in Balancer Governance.
  • Making sure that the votes made with the Aragon Balancer token delegation are made with a high level understanding of the Balancer Ecosystem, with the end goal of creating net positive results for the broader DeFi ecosystem.
  • Balancer operates a Voted Escrow (VE) governance process that is designed to create long-term token holder alignment, this system is based heavily on Curve’s VE Mechanism, veBAL is a is a vesting and yield system which locks 80/20 BAL/WETH Balancer Pool Tokens for a maximum of 1 year. After locking up tokens for a year maximum, a veBAL token holder can now participate in Governance on Balancer through Balancer Improvement Proposals (BIP’s) and weekly gauge votes, Wildfire is asking for this Balancer delegation to participate in BIP’s and weekly gauge votes, we hope to support the Balancer community while creating revenue for Aragon through participating in weekly Gauge votes and claiming the rewards of Bribe Rounds on Hidden Hand, on behalf of Aragon and splitting the revenue.
  • Enabling Aragon tap into a new revenue stream by leveraging the BAL governance power to generate bribe revenue for weekly gauge votes that decide which pools get emissions. Through Hidden Hand, a bribe marketplace built by Redacted Cartel, we would be using the delegated BAL governance power to enter the most rewarding bribes.
    • At the time of writing this, BAL token holders would receive $0.17 per vote, multiplied by Aragon’s 13,864 BAL, if Aragon’s BAL tokens were used in the latest bribe round, those tokens would have generated $2,356.88 in revenue every 2 weeks, this is not a staggering amount of money, but compounded over time, with no significant overhead cost to Aragon, we believe that this is a unique opportunity to create value for Aragon.
    • It is important to understand that bribing requires good timing to ensure that you get the best price for your vote, this is why you should trust Wildfire DAO, we have vast experience with this technology and the kind of research skills needed to get the best value for votes, in return for this service and the broader Meta-Governance work we would undertake on Balancer on behalf of Aragon, such as voting on proposals, attending community calls and engaging with forum posts, we are asking for 50% of the bribe revenue generated, this 50% revenue split is subject to review and renegotiation every quarter.
    • Hidden Hand however takes a 4% fee of total bribe revenue, this will be factored into revenue splits and payouts to Aragon.
    • This bribe revenue profit sharing process will be highly transparent, we will maintain a Google Sheet where weekly bribe revenue will be recorded, following that, as soon as bribe rewards are distributed we would send over Aragon’s share in the tokens in which they are paid out.
    • In addition to the BAL delegation we would need a Grant of 0.1 ETH per quarter, this will be solely used to pay for gas fees for all governance activities conducted on Balancer and Hidden Hand on behalf of Aragon, this amount may be reviewed every quarter if gas prices trend upward or downward.
  • We also plan on actively engaging with the Aragon community by creating a topic on the forum at the end of every month, this would serve as a monthly report where we give details on how and why we voted in a certain way on behalf of Aragon, this report would also contain a breakdown of the bribe revenue generated, how the revenue was split and when it was remitted to the Aragon Treasury, we would also coordinate with an appointed member of the Aragon Governance Team, this individual would be our point of contact on every Balancer Governance Proposal.

Proposal Rationale

We believe that Aragon’s Balancer tokens could be put to better use through participating in governance activity on Balancer, we also believe that Aragon could earn revenue through bribe rewards, and we want to enable this opportunity through our experience in the Balancer ecosystem.

Limitations

There are currently no limitations to Wildfire DAO participating with Balancer Meta-Governance activity on behalf of Aragon, however the only limitation is that there is no certainty of projected bribe revenue, regardless the outlook looks promising considering that we are in a bear market, a bull market would most likely see higher promise for bribe revenue.

Trajectory for delivery

As soon as the BAL tokens are delegated to Wildfire DAO, we would start voting on governance proposals, attending community calls on behalf of Aragon and conducting research ahead of the next bribing round on Hidden Hand.

Team Information

keneeze.eth - Kene was the Index Coop Meta-Governance Rep for Compound before flexible contributions were discontinued, he has worked with the Content and Governance Pod at Index Coop as a Contributor, he also has a deep interest in Meta-Governance and has written about the subject in depth.

Song - Song has extensive experience in traditional finance and in the blockchain industry and employs best practices while navigating the lack of regulatory clarity in DeFi.

Ben Giove - Analyst at Bankless, Methodologist for Index Coop and Bankless DAO

The three of us bring together a unique set of experiences and expertise that we believe will help us make tangible contributions to Wildfire DAO while adhering to the Web3 ethos of transparency, collaboration, and decentralization.

Specification.

We are requesting that the Aragon Association (AA) will delegate its BAL tokens to the Wildfire DeFi Pod, with this address: eth:0x7c1ba969B47C7b189eEE10bCC11d6e8897fD97c3

An initial grant of 0.1 ETH (for fees) will also be sent to the aforementioned address.

When the fund transfer from AA to AN DAO will take place later this year, the BAL tokens will be temporarily withdrawn from the Wildfire address and then again re-delegated from the AN DAO multisig.

4 Likes

Hi @keneeze.eth thank you so much for your proposal. Seems very clear and straight forward to me and Wildfire has an impressive track record.

I particularly like the point of “actively engaging with the Aragon community…etc.” especially as we intend to extend our ecosystem reach.

1 question:
Is this proposal for 1 year? i.e. is there a time limit?

Thank you!
-Anthony

1 Like

Thank you for the kind words @Anthony.Leuts

This delegation would typically last for a year, after which we would submit a “Year in Review Report”. If the Aragon Community chooses to undelegate, then a proposal can be submitted.

2 Likes

Love this proposal, this would be a great first experiment of Delegation of some of the tokens held that are not currently utilized.

Just to understand - The yearly fees generated would roughly be $60K split 50:50 so $30K to the Aragon treasury. Roughly a 37% yield on the BAL tokens held if the revenue was predictable in each vote.

I see this as a win win, provide value to other ecosystem players and generate yield on underutilized assets.

What would be the mechanism to remove voting power in the unlikely situation the DAO disagreed with the way wildfire was voting.

Many thanks for the proposal,

AClay

1 Like

First of all, thank you for this proposal @keneeze.eth!

This has my full support as we optimizing with a small part of our treasury and we make a first start in meta-governance!

There is no specific limit in the proposal @Anthony.Leuts
We added a quarterly review, where Wildfire will report on the revenue (so we can check if the 50/50 distribution makes sense), and we will check if the gas fee grant is still sufficient (starting with 0.1 ETH).

1 Like

Thank you for the kind words @AlexClay

Aragon DAO can simply spin up a proposal to undelegate the voting power and if it passes then manually do that from the Multi-Sig.

3 Likes

Thank you! Sounds great to me. :+1:

Thank you for a great proposal, I am fervently in support!

In my perspective, the relationship of Aragon with WildFire DAO is strategic. As far as I am aware, WildFire is the community, that is furthest along in exploring the idea of proactive value-add governance. On a longer timeframe collaborating with leading, meta-governance teams can greatly benefit Aragon’s own governance as well as product development.

Disclaimer: Rick and I provided feedback on a draft of this proposal.

3 Likes

The AN DAO Charter states:

"Process for Financial Proposals and/or Other Proposals : in sequential order:
i. Public deliberation phase: A post with the draft of the proposal is posted in the Aragon forum for a minimum of 7 days and maximum of 14 days "

@keneeze.eth, if I am not wrong you put the proposal live before the 7 days period expired. The aragon voice proposal concerning Wildfire DAO’s delegation is therefore unlafwul.

I don’t dispute the merits from a substantive point of view, but in your proposal there is a lack of clarity on a central aspect, namely Balancer’s veToken mechanism. I am not sure that the Aragon community is familiar with this governance system. Moreover, it is unclear if and how you should get veBAL.

As a member of AN DAO’s compliance Sub-DAO, I therefore ask you to resubmit in accordance to the 7 days period indicated by the Charter and clarify the indicated aspect.

cc @Tayy @ronald_k

There seems to be some confusion @eaglelex but this proposal was posted on the 4th of August and went up as a proposal on the 11th of August, this clearly meets the 7 day threshold and I do not agree with this challenge of Non-Compliance.

You proposal is short approximately 6 hours to meet the minimum requirement of seven days. If you click on the time stamp it will show the exact time posted and the time this was advised as voting. Based on my timezone UTC +12 I see

Post: 5 August 0602
Vote: 11 Aug 2346

Should have been at minimum
12 August 0602

Also just to clarify @fartunova are you a member of Wildfire DAO in what capacity?

Yes, you are right “there seems to be some confusion” here. Now that @lee0007 has explained, do you understand or do you need an illustration?

For a “meta-governance initiative” perhaps it would be good to read and understand the rules on governance before posting proposals. In any case, for Aragon it is not important if you agree or not with what I have written, rules have to be respected.

Moreover, you did not reply on my point on the ve system. This seems a disrespectful and negative behavior. You write “We believe in transparency, and we operate collaboratively, within our DAO and with all DAOs we work with.” Frankly, this time it does not seem to be the case.

If proposals do not respect the Charter, the Compliance sub-DAO needs to excercise the veto-power. We can’t make exceptions.

Hi Eagle can you please advise if Keneeze must resubmit the proposal for 7 days again or just resubmit the vote now that it is past this time frame? I also would like to know this! Thanks!

@keneeze.eth it would be great if you could resubmit, seems like an honest mistake in relation to the time stamps.

Thank you!

@eaglelex I apologise for the confusion on my end, I will amend this forum post and the proposal to reflect what exactly the ve governance system means, it was a lapse on my part to assume it would not need to be explained.
I do not mean any disrespect to Aragon DAO, I was just caught off guard with your tone and approach to communicating, however rules must be followed, I do not believe I have the power to take down the proposal on Aragon voice, so please do that, I will edit the forum post to briefly explain what veBAL is and put that into the proposal as well.

2 Likes

Perfect, thank you very much! Know that you are good guys. Ben is a superstrong analyst and Lucas is a fren.

@Anthony.Leuts, the forum discussion went on and now enough time has passed. Therefore I think that, in the absence of references in the Charter, this can go directly to Aragon voice.

Only issue is that compliance sub-DAO does not have the power to strike down the vote which is going on. Perhaps we can ask technical support on the issue. In any case, it would be good to eliminate the reference in the forum. Only 4 people have voted so far.

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@eaglelex I will eliminate the reference in this forum and delete the discord post as well.

2 Likes

I will attempt to find out how to take down the vote for @keneeze.eth to repost.

https://voice.aragon.org/processes/#/0x21b2ea5345d2121bd9f46ec5af4271384bbe58192ba32996ddcc0b0000000008

Amended version of the proposal live on Voice please vote.

1 Like

Thank you for your question, Renee. Rest assured that if there were anything worth disclosing, I would have disclosed it :slight_smile:

I do not hold a compensated role within the WildFire community.

As an early community member, I hold an insignificant amount of Wildfire Partner Pool tokens. The token represents a Balancer pool consisting of tokens of projects where WildFire is an active governance participant, namely (Aave, Balancer, RocketPool, ENS, SuperRare, MetaFactory, Gitcoin, and DAOHaus).

2 Likes