LEAP-35: Lyra’s DAO Expansion

Author
StatusApproved
Created2022-01-09

Simple Summary

This LEAP proposes to expand Lyra’s governance.

Abstract

Lyra Governance V1, established in LEAP-15 and expanded in LEAP-17 has given the token holders the right to elect Lyra’s Council, and GrantsDAO.The Lyra Council is mandated to administer the LEAP framework, which seeks to ensure that changes to the protocol are transparent and well-governed. Lyra’s governance is intended to be iterative; this LEAP is an expansion of Lyra’s current DAO structure and not a final form of governance.

If adopted, this proposal seeks to delegate authority to two new Lyra charters based on their objectives: Treasury Council and Operations Committee

Motivation

This LEAP expands Lyra’s governance functionality by ensuring the day-to-day operations run smoothly and that Lyra’s Treasury is managed appropriately for the long-term success of the Protocol. To maximize efficiency, the Lyra Council shall ratify two additional charters. This LEAP proposes the establishment of Lyra’s Treasury Council, and The Operations Committee, whose functions will be laid out in separate LEAPs. The Lyra token holders and therefore Lyra DAO will retain dominant authority including the ability to modify or remove multisig members via future on-chain votes. On-chain management of multisigs will be implemented as soon as feasible and be outlined in future LEAPs.

Specification

Overview: Council Elections

Elections: Lyra’s Treasury Council will serve in 6-month epochs and follow the voting methods outlined in LEAP-15. The Operations Committee nomination process will vary from that laid out in LEAP- 15 and be described in a subsequent LEAP. An individual may serve on only one Council per epoch, this excludes members of the Operations Committee who may serve on the Operations Committee as well as one Council but may only receive incentives for one role at a given time.

Rationale

Streamlining Lyra's treasury management and operations creates the clarity and consistency necessary to operate effectively.

Overview: New Councils

Lyra's DAO currently has several responsibilities better suited for execution by elected groups.

Lyra’s DAO functionalities:

  1. Treasury Management
  2. OTC and Strategic Deal Making
  3. Metagovernance Participation
  4. Governance Stipends
  5. Funding Initiatives Approved by Council VIA the LEAP Framework
  6. Providing Budgets for Grants DAO
  7. Issuing Discretionary Incentives
  8. Partnership Operational Costs
  9. Funding Operational Costs of the Lyra Protocol
  10. Core Contributor Payments and Discretionary Bonuses
  11. Management of Lyra’s Road-map and Vision
  12. Core Contributor Engagement and Disengagement
  13. Core Contributor Incentivization
  14. Core Contributor Resourcing & Prioritization
  15. Formalizing the qualification process and retention packages for future contributors
  16. Establishment of Lyra’s working Teams

The division of these responsibilities between the new charters is as follows:

Treasury Council:

  1. Treasury Management
  2. OTC and Strategic Deal Making
  3. Metagovernance Participation
  4. Governance Stipends
  5. Funding Initiatives Approved by Council VIA the LEAP Framework
  6. Providing Budgets for Grants DAO
  7. Issuing Discretionary Incentives
  8. Partnership Operational Costs
  9. Funding Operational Costs of the Lyra Protocol
  10. Funding the Operations Committee

Lyra’s Operations Committee:

  1. Core Contributor payments and discretionary bonuses
  2. Management of Lyra’s Road-map and Vision
  3. Core Contributor Engagement/Disengagement
  4. Core Contributor Incentivization
  5. Core Contributor Resourcing & Prioritization
  6. Formalizing the qualification process and retention packages for future contributors
  7. Establishment of Lyra’s working groups

Any remaining tasks not specifically outlined in a LEAP or that may arise in the future that are not defined here, shall be the responsibility of Lyra’s Council to either perform that functionality or delegate responsibility to a new or existing governing body within the Lyra DAO.

Rationale

This LEAP clarifies which responsibilities will fall under the newly established charters. Once core functionalities of each new charter are agreed upon, the implementation, delegation of powers, checks and balances between these groups, and on chain management of Lyra's governance will be defined in further LEAPs. To ensure a smooth transition and simplify the governance process, we must agree to a high-level structure before moving forward with specific details of each new governing body.

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Implementation

This LEAP requires no additional implementation beyond the adoption of new processes utilizing the platforms currently active within Lyra. Further specifications for the delegation of power to Lyra’s Treasury Council and Operations Council and on-chain management of Lyra’s governance are to be outlined in subsequent LEAPs.

Technical Specification

References

This LEAP draws heavy inspiration from Synthetix, Yearn, and multiple other successful governance structures. Ref YIP 41, YIP 61, SIP 155

Configurable Values

Treasury Council Election term = 6 months

LEAPs

  • LEAPs

Lyra Enhancement Action Proposals (LEAPs) describe standards for the Lyra Protocol, including core protocol specifications, client APIs, and contract standards.