Maker Holder DAI-gest: Week 10, 2020
Governance Recap March 5, 2020
Maker Holder DAI-gest is a publication by the community, for the community. While trying to remain completely objective, none of the statements or opinions shared here reflect that of the MakerDAO foundation. The best way to stay informed about governance and risk current events is through engagement with the community. This summary may not present all sides of an issue. You are encouraged to seek further information on topics of interest.
Three-Point Governance Summary:
- Precedent for on-chain polling: No formal signaling process exists for foundation members. How should this be addressed? How should urgent governance issues be addressed which may require immediate action? Are there situations where the signaling process could and should be abbreviated or appended? Community input needed; follow the link to the forum thread.
- Collateral Risk Model: SOMETHING EVERY GOVERNANCE COMMUNITY MEMBER SHOULD WATCH In the call this week, a presentation is given about the collateral risk model and credit risk modeling for considering new types of collateral. Approving new types of collateral is essential to the growth of the system and is a governance issue. This presentation provides an orientation and road map for handing this off to the community. The presentation can be found at 45:00min into the call. #mustseetv
- Important debates are coming up weekly but discussion thread in the weekly call lacks continuity. Food for thought / how to handle?
Executive Votes and Polls
Look for an executive vote to open this week that includes some of the Governance Hot Topics and Poll Proposals.
Open: Executive Vote Activate the Debt Ceiling Adjustments and Set the Dai Savings Rate Spread Link
- Lower the Sai Debt Ceiling by 5 million to 25 million Sai
- Lower the Dai ETH Debt Ceiling by 20 million to 130 million Dai
- Set the Dai Savings Rate Spread to 1%
- Note: This will set the DSR to 7%
Poll: March 2–5, 2020
Dai Stability Fee Adjustment Winning proposal: 8%
Voters can choose the Dai stability fee to be set anywhere between 4% and 12%.
About the Dai Stability Fee: The MakerDAO system is designed to cover excess outstanding loan amounts that may not be covered by the liquidation of collateral. Although this is highly unlikely, it would most likely result from a situation that is unforeseeable. This fee covers the amount of inflation during the time the loan is made, administrative costs of the Foundation, and a credit guarantee fee for Maker Holders who are acting as guarantors of the loan. This fee covers the risk and the risk of risk being risky.
Poll: March 2–5, 2020
Dai Savings Rate Spread Winning Proposal: 1%
Voters can choose the Dai Savings Rate spread to be set anywhere between 0% and 4%.
About the Dai Savings Rate: When the value of Dai goes too far off track from the $1 set-point, adjusting the savings rate is one mechanism for price correction:
- If the market price of Dai is above 1 USD, MKR holders can choose to gradually decrease the DSR, which will reduce demand and should reduce the market price of Dai toward the 1 USD Target Price.
- If the market price of Dai is below 1 USD, MKR holders can choose to gradually increase the DSR, which will stimulate demand and should increase the market price of Dai toward the 1 USD Target Price.
For the voter to decide: A prudent spread for the DSR to be adjusted to be able to respond quickly to the value of Dai going above or below $1.
Poll: March 2–5, 2020
Sai Stability Fee Winning Proposal: 9.5%
Voters can choose the Sai stability fee within a range of 5.5% to 13.5%
About the Sai Stability Fee: The MakerDAO system is designed to cover excess outstanding loan amounts that may not be covered by the liquidation of collateral. Although this is highly unlikely, it would most likely result from a situation that is unforeseeable. This fee covers the amount of inflation during the time the loan is made, administrative costs of the Foundation, and a credit guarantee fee for Maker Holders who are acting as guarantors of the loan. This fee covers the risk and the risk of risk being risky.
Poll: March 2–5, 2020
Adjust DSR Spread Polling Cadence Winning Proposal: YES
Change the polling for DSR from weekly to every other week.
About the DSR Polling Cadence: The MakerDAO platform is intended to be able to take quick action to conditions that increase the risk of loss. DSR is a mechanism to get the value of Dai back on a peg to $1 US. There is a debate that one week between adjustments does not give enough time for the effect of DSR adjustments to be realized due to the high frequency. The goal is to get a better understanding of how DSR adjustments affect Dai peg by giving more time to watch data trends.
Governance Hot Topics
- Sai Governance Security Module: Implementation of a 24-hour delay on single collateral Dai governance smart contracts. This discussion revolved around implementing a similar GSM fix for Sai which has already been approved by voters for Dai.
- Spell expiration: Setting a one-month expiration for proposals that lack ratification. This prevents the activation of outdated proposals as an attack vector.
- Signal Request: Add Ranked Choice Voting as an Option for Governance Polls: Both a forum discussion (follow the link) and discussion topic in the weekly call, providing ranked choice voting so that a proposal which may have multiple values is needed to better represent community choices.
- State of the peg: On average is remaining on target with 1 US dollar, or slightly higher. Trading volumes are strong and consistent with Dy/Dx as the top volume trading exchange. ETH price has been observed as a direct corollary to the Dai peg. Other monetary policy mechanisms have been more difficult to relate to Dai peg.
- A better understanding of the technical details of voting proposals is a trending topic in the forum. Community feedback on this issue would be helpful to steer towards a solid identification of issues around information needs that exist.
- Collateral Risk Modeling: Not enough emphasis can be placed on how important it is for voters to get an orientation to the components of collateral risk modeling. No summary can adequately convey the information presented in this week’s governance call. This covers an important topic relevant to all of the governance community at 45:00min into the call. Assessing the risks and benefits of a collateral type will be one of the key tasks of the governance community. #themoreyouknow
Weekly Governance and Risk Meeting, Ep. 76 March 5, 2020
Here is a guide from MakerDAO about becoming involved in Governance. The meeting is held every Thursday, 17:00 UTC, 09:00 PST, 08:00 CST, 06:00 EST, 18:00 CET
- Understand the issues that are discussed and governance themes that get explored to build a healthy, secure, Maker Platform.
- Get info on how to connect by phone or webcam.
- Explore meeting archives.
- March 4–11, 2020 Blockchain Week London
- March 9–10, 2020 Crypto-Assets Conference Frankfurt, DE
- March 10, 2020, CryptoCompare Digital Asset Summit London, UK
- March 12–13, 2020 Blockchain Summit Latam Panama City, PA
- May 8–9, 2020 Ethereal Summit New York New York, US
- June 16–18, 2020 Money 20/20 Europe 2020 Amsterdam, NL
- Weekly Community Development Meeting — Tuesdays 09:00 PST
- Weekly Governance and Risk Meeting — Thursdays 09:00 PST, 08:00 CST, 06:00 EST, 18:00 CET