This LEAP proposes V1 of Lyra's governance.
The essence of V1 governance is a five-seat representative council elected by the LYRA token holders. This group is known as the "Lyra Council" and has the mandate to administer the LEAP framework, which seeks to ensure that changes to the protocol are transparent and well-governed. The Lyra Council sits for three calendar months, after which a new Council is elected.
The Lyra Launch Council, established here and extended in LEAP-10 is coming to a close. Having launched the LYRA token, it's now possible for token holders to elect the new council. In preparation, we would like to codify the processes that have been running informally since the inception of the Lyra Launch Council and define the election process.
Governance is crucial to get right and yet very complex. As such, we intend the evolution of Lyra's governance to be an iterative process, moving progressively toward more decentralisation. By enabling LYRA token holders to elect the Council, V1 provides a meaningful advance over the Lyra Launch Council.
Lyra will be governed by a five-seat representative council that is elected by LYRA token holders. The Lyra Council will administer the LEAP framework, which controls how the protocol changes and how community tokens are allocated.
The representative council model has worked well for Lyra so far, allowing the core team to iterate quickly whilst transitioning control to the community.
A LEAP is a proposal to change part of the Lyra Protocol and can be created by anyone in the community. For a complete description of what a LEAP is, please see LEAP-1. Some examples include:
- Listing new markets (LEAP-2, LEAP-5 or LEAP-9).
- Allocating the LYRA token (LEAP-3, LEAP-4 or LEAP-6).
- Modifying the governance process itself LEAP-10.
- Adding new features or improvements to the protocol.
Passing a LEAP requires a majority of votes in favour (i.e. 3/5).
Token Holders are community members that hold the LYRA token or one of the related tokens listed below. Token holders are eligible to vote in council elections. Tokens that are controlled by the Lyra DAO are not eligible to vote.
|LYRA L1 Holders||1x||0x01ba67aac7f75f647d94220cc98fb30fcc5105bf|
|LYRA Optimism Holders||1x||0x50c5725949A6F0c72E6C4a641F24049A917DB0Cb|
|WETH/LYRA 1% Uniswap V3 Optimism||1x||0xf334f6104a179207ddacfb41fa3567feea8595c2|
|Escrowed LYRA Holders||0.25x||Multiple vesting contract addresses|
The Lyra Council is a five-seat council that will sit for three calendar months at a time. During this time, the council will be responsible for voting on LEAPs. Sitting on the council is expected to take on average 100 hours of time per month, which includes, but is not limited to:
- Overseeing and promoting discussion and community involvement in the LEAP process.
- Voting to pass or deny LEAPs in a timely manner.
- Keeping up to date in Discord and in the broader DeFi community.
Given the above, this is an incentivised role and each council member will receive the following each month:
- 5000 LYRA
- $2000 worth of LYRA, using the open price on coingecko on the first of each month. If this price is less than $0.05, the DAO may pay council members in USDC.
The election process begins one week prior to the conclusion of the current council period and consists of two distinct phases:
- Nominations (4 days)
- Voting: (3 days)
At the end of the voting period, the five nominees with the highest number of votes will receive a council NFT granting them the right to vote on LEAPS.
Candidates must nominate themselves in Discord and must have been a Discord member for over three months to be eligible for nomination. Candidates should provide a short write-up of why they would be a suitable member of the Lyra Council as part of their nomination. Voting will take place on snapshot with a custom strategy that enables eligible groups to vote.
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