Vote Type
Token holder DAO snapshot with a 7-day vote period
DAO-elected Sponsors
@Eastban , @JohnPackel , @wuji, @EvandroSaturnino
Tldr
We need a DAO-empowered body able to make informed decisions over the thUSD protocol, and oversee activities and contractor roles for thUSD.
Background
Threshold USD (thUSD) is a stablecoin soft-pegged against USD and backed by ETH and tBTC as collateral, with a minimum collateral ratio of 110%.
Threshold USD is a modified fork of Liquity Protocol, built to be self-sustained through a PCV (“Protocol Controlled Value”). There is no equivalent of the LQTY token in Threshold USD. Instead all profits accrue into the PCV. Since there is no token, bootstrapping is achieved through an Initial Protocol Loan.
The idea was born with TIP005 and was launched after two years of brainstorming and development. Since then, there have been many efforts made by the DAO on activities such as expansions, marketing, growth, liquidity and discussions about improvements to the protocol. These activities have been performed by several collaborators from different guilds, but without a specific DAO-empowered entity dedicated to the management of these activities.
Proposal
The DAO has invested significant resources, time, and expertise into developing the thUSD protocol. It synergizes well with tBTC and has substantial potential for economic growth (for reference, Liquity’s revenue to date exceeds $34 million) and significant impact on the DAO.
Currently there are too few individuals focused on matters specifically related to thUSD. For example, ongoing internal discussions suggest the need to hire a dedicated individual for product marketing of the thUSD product. Equally important is delving into the details of Liquity version 2, exploring options to enhance the protocol, and considering the addition of an interest rate.
It is clear there is a need for a dedicated group that discusses, decides, and oversees the thUSD protocol. This proposal will let the DAO decide on the creation of a DAO-empowered thUSD steering committee.
Suggested Structure and Responsibilities of the Committee
This oversight committee would be a group of five active cross-guild DAO members that would be responsible for:
- Steering the protocol
- Overseeing Growth & Development roles in their intersection with thUSD
- Discussing and deciding on overall protocol strategy, roadmap, focus and resource allocation
- Appointing, monitoring and reviewing the activities of a new thUSD Product Marketing role (separate proposal) and/or any other needed role.
Governance Process
To ensure the proper formation and operations of the thUSD Steering Committee, we propose the following governance process:
Proposal Submission and Approval:
This proposal seeks to create the thUSD Steering Committee, which will be submitted to the DAO for approval. This new committee will have 5 seats, and will be governed by the DAO Rules for Guild Committee Elections and Management (TIP-031).
The proposal for the creation of this Steering Committee will first be voted on by the DAO to ensure approval. Upon approval, the process for nominations for candidates to fill the seats of the thUSD Steering Committee will open.
Following TIP-031, the founding committee will be created in a staggered manner with the objective to align with the DAO Guild and Council elections, although this committee will not be classified as a guild.
This proposal to approve the creation of the thUSD Steering Committee will include details on the committee’s structure, responsibilities, and compensation. This will leave the elections of the actual members for a second phase.
Nominations and Elections of Committee Members:
Once this proposal is approved by the DAO, the nominations period for the thUSD Steering Committee will start.
Nominations for committee members will be open to all active Threshold Network DAO community members. In the process of nominations, all candidates must express their willingness to serve on the committee either via self-nomination or via explicit acceptance of someone’s nomination (see TIP-031). Since this is a group that will oversee and manage the thUSD product, it is required a sufficiently good knowledge of the protocol to fill a seat within the Committee.
The nomination period for this founding thUSD Steering Committee will last for two weeks. This period will start the following day to the approval of this proposal. Following this, elections will be held to determine the committee members. To establish a staggered election cycle, the seats will be divided as follows:
- The top half of the elected members (those 3 candidates receiving the most votes) will serve until March 2025.
- The remaining members will serve until September 2024, at which point elections will be held again to align with the standard election schedule.
Subsequent elections for the thUSD Steering Committee will coincide with the DAO Guilds’ elections, ensuring a consistent and organized process.
All selected committee members must meet the required commitments described below.
Committee Operations:
- The committee will hold weekly calls for synchronous discussions and decision-making.
- Asynchronous discussions and polls will be conducted via Telegram.
- Committee members are expected to commit 4 hours per week, compensated at the standard DAO rate of $85 per hour.
Monitoring and Accountability:
This committee will provide regular updates to the DAO on their activities, decisions, and progress. The updates can be of different nature, all of them will help the transparency of this body’s operations:
- Contributions to the monthly reporting process implemented by the DAO.
- Periodical updates of the official documentation.
- Weekly participation in the thUSD catch ups.
- Participation in talks, X spaces, podcasts, etc. strongly encouraged.
- Frequent collaborations with the DAO Marketing Guild.
The performance of the committee and its members will be reviewed bi-annually during the election period.
Amendments and Adjustments:
Based on feedback and operational experience, amendments to the committee’s structure and processes can be proposed and voted on by the DAO.
The thUSD Steering Committee is not considered a DAO Guild; it does not manage a budget, and the time commitment required is less than that of a Guild. However, the proper operation of this committee is the responsibility of the DAO. If the committee fails to perform its duties effectively, a no-confidence vote can be initiated to dissolve the body. This vote can be triggered by any Guild Committee in full or the Council. Additionally, the committee can self-dissolve or be dissolved by a DAO vote initiated by any Council member or Guild Committee member.
This ensures that the committee remains accountable and operates in alignment with the DAO’s standards and expectations.