Threshold Council Operations Report

August 26, 2022 - @Derek Pierre

The original responsibilities of the Threshold Council were to:

• Set staking rewards for each Threshold application
• Veto any malicious DAO proposals

Nonetheless, there has been scope creep into the responsibilities of the Threshold Council. In the approximate eight months since the creation of the Threshold Council Multisig, the Threshold Council has executed 193 transactions which equate to approximately 24.1 transactions/month in 2022  - this excludes the month of December with only one transaction and includes only a portion of August given the date this report. These transactions include liquidity pool creation, liquidity incentives, KEEP coverage pool top-ups, ETH loan repayments, lender rewards splits, other protocol-owned liquidity (POL) activities, minting of T staking rewards, and DAO Guild budget distribution etc.

This increase in responsibility is not entirely surprising given the large DAO treasury and the vital requirement for safekeeping. Given the longer-term nature of the Council (1-year terms) as opposed to the Guilds (6-month terms), having the Council control the T treasury and POL is probably the safest solution for now. However, some activities can still be transitioned to the Guilds and, whenever feasible, directly to the DAO’s Governor Bravo instance to dispense with multisigs altogether.

This report outlines current operational challenges and provides suggestions to ease the burden on the Threshold Council Multisig for the creation, signing, and execution of transactions. These suggestions are expanded upon later in this report and include:

• Moving liquidity incentives to the Treasury Guild
• Instituting a recommended timeframe for queueing transactions based on the required execution deadline
• Batching transactions for signing
• Piggyback transactions without deadlines onto other transactions
• Creating a repository to document and provide context on Threshold Council operational activities
• Utilizing the Treasury Guild for Coverage Pool top-ups
• Regularly reimbursing transaction fees

Data Collection

The data collection used for this report comprised of three initiatives:

1. A Python script to retrieve on-chain statistics from the Threshold Council’s Gnosis Multisig via the Safe API. The script gathers the following information:

• Overall time to execution statistics, i.e. time from transaction creation to execution