Wrote this article after observing Terra’s governance, and hearing about it potentially becoming a DAO.
As Terra prepares to welcome many more community projects, I hope it resonates with the community and that some of the checks and balances I mention can be implemented!
Some other topics I believe the community should discuss more:
What should we do with the community fund (Ozone doesnt have to be the only option), and should it take the form of a Treasury rather then just a small fund to help Terra initiatives.
How to incentivize efficient governance
Have we explored all opportunities that IBC opens to Terra
Agree that the community funds should be used to diversify risks (swapping some tokens for stable coins or other protocols coins: LIDO, YEARN, UST/USDC/USDT/DAI) otherwise if we enter a bear market we will end up adding extra selling pressure when the funds are needed or the community pool value will have a significantly lower value.
There should be a way to incentivize smaller size validators to avoid concentration.
There should be a way of penalizing validators that don’t vote for proposals, that should add some dynamism. If the validator I’m using doesn’t vote the way I want I might re-delegate.
There should be more visibility on how each validator votes on a given proposal so I know which ones are aligned with my ideas.
Agree we should ask for more info before handing out grants to new protocols and maybe TFL should handle the vesting for those new protocols, and new funds should only be vested if a milestone is hit. If not, the we should vote a new proposal to release those funds.
I created a topic around protocol/dAPP launch standards, and discovered this post after that. You touch on many of my concerns around decentralization. It is both necessary for Terra to grow beyond its current governance, and a huge risk if not done properly. I focused specifically on disclosure rules for new protocol/dAPP launches and would love feedback on the idea. I think governance and decentralizaiton of governance around validators voting, community pool spend, project funding, and disclosure for approval of project launch are paramount for us to become more decentralized. Thank you for writing this article, and happy to be getting more involved here.
-Evan