Agenda

Staking contract upgrade
Governance per application
Rules for proposals: request for comments
Grants program
Paladin

Discussion

Staking contract upgrade: TIP-033.
- Minor changes and bug fixes.
- Upgrade: increase the complexity of the status in the staking contract.
  - Staking contract currently cannot slash stake, needs to update to change the behaviour.
  - Gas efficiency - [John packel] can it be quantified? → Piotr’s comments on the PR introduce the numbers.
    
    Before this change:
    
    for group size 64, gas cost: 3 142 093, for group size 100, gas cost: 4 860 500. After this change:
    
    for group size 64, gas cost: 1 720 849, for group size 100: gas cost: 2 639 758
  - Change the behaviour of the staking contract in case an app receives a decrease authorization (e.g., reduce the stake size), the app decides whether the decrease is authorized.
  - Allowing top-up a stake: e.g., in a single transaction claim the rewards and re-stake.
  - Minimum stake 40K: they were not allowed to stake 40K (before needed to be 40K and a little bit more).
- Procedure: the council owns the staking contract, currently we don’t have the Stake DAO deployed, therefore after acceptance of the upgrade in Snapshot, then the council will do the upgrade.
- [Vict0r] PR-87: current approach - if your are slashed, it is in only one app, the other apps would be affected depending on the authorization size you have.
Per application rewards split: TIP-032.
- tBTC v2 will start with rewards that are smaller than PRE and slowly increasing the amount.
- The increases will coincide with big milestones for tBTC v2.
- Make sure the staking clients and partners are ready to support the network before the rewards ramp-up completely.
- Additional reason: quick-minting is ready.
- [East] From a node operator perspective: what are the steps to not skip rewards?
  - Staking client: when it is ready they will start to onboard node operators.
  - The proposal would need more clarity in this sense → ask in the forum to allow the discussion on this issue.
  - [East] Post the proposal in the council Telegram group.
Rules committee:
- Draft for rules and proposals: addendum to TIP-026: process and flow.
- Working document: https://docs.google.com/document/d/1SdCqYy-CgInFFgHv5vuzei0elQPtPDjtWzkHjk3RKYw/edit
- Suggestions and comments are welcome.
- [East] What’s the role / responsibilities of the sponsor? → Gate keeping before it goes to a vote. A community member should agree it is worthy of consideration and sponsor it. No responsibilities to agree with it, it is not endorsement, just second it.
  - The language on the proposal should be reviewed to facilitate understanding.
  - Elaborate on sponsor: to avoid information / vote fatigue. → There should be some process to decide what goes to a forum post (e.g., Xanadu Network).
Do the council agree to create assignees for the Snapshot admins? It is not part of the original responsibilities for the council:
- Rewards split
- Veto functionality of proposals.
- Additional: managing the multisig transactions (very hard job that takes multiple hours a day for the council members)
- Continue discussion async on #governance.
Grants Guild Discussion:
- Strategical move for the DAO, a next step to have a Grants Guild, for the long-term success of Threshold.
- Discuss what do we want to push forward via grants, e.g.,
  - building on top of PRE, tBTC v2, thUSD.
  - Building for the DAO the new subgraph development.
- Next steps?
  - Suggestion: joint committee as in rules - subcommittee.
  - Needs more dedication than the original 8h from the committee members.
  - Start a new channel in Discord to start discussions. Forum feature in discord?
  - Have a look at other grant programs created by other strong entities in the space, to look for applicable ideas for us.
Alejandro from Paladin:
- Partner from September 2021.
- Quests for the last three months.
- Threshold was the first quest creators.
- Reviewing the numbers for the last quests of Threshold (high APR).
- Help spread the word through twitter.
- https://app.warden.vote/quest/
- Explanation: We have a T-ETH pool ~$10M and the DAO owns ~80%
  - Each week we get rewards from Curve in CRV. Different weight for each pool.
  - CRV holders lock their CRV for veCRV and they can vote for each pool with their voting power and the rewards get assigned according with these votes.
  - There are tools such as Quest (Warden) that help us acquire this voting power in a bi-weekly basis.
  - Different protocols offer the same functionality, and the system is quite complex.
- https://twitter.com/Paladin_vote/status/1560654515975557120
Kudos for today: fill the form in the voice chat channel: https://tally.so/r/w81kkl

Action Items

[ ] Continue discussion regarding assignees for Snapshot proposals on #governance.
[ ] Start discussion and conversation in a new channel in discord for the grants committee.