Modernising Euler Governance

Euler DAO Foundation
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Euler is now over five years old. In that time, it has weathered challenges with resilience and grown into one of the leading protocols in DeFi, achieving major milestones over the past year. Yet while the protocol has matured, its governance model has not kept pace. Many newer projects operate with founder-led or foundation-led structures that can make executive decisions and deploy treasury resources quickly, giving them a competitive edge in striking deals with institutions and hiring top talent. By contrast, Euler’s DAO-based governance is seen to potential partners as slow and overly bureaucratic, from a bygone era. Proposals bounce between Euler Labs, the Euler Foundation, and the governance forum, slowing execution and frustrating stakeholders and would-be counterparties who do not want negotiations made public. This limits the project’s competitive ability to secure partnerships, attract investors, and hire/retain critical contributors.

To keep Euler competitive, we propose modernising DAO governance by granting the main value driver for the project, the Euler Foundation with support from Euler Labs, a clear mandate to manage and execute treasury decisions. This would enable the Foundation to work closely with stakeholders to act decisively on opportunities such as:

  • Investments and partnerships with DAOs and corporates

  • Relationships with exchanges and fintech partners

  • Renewing vesting schedules and long-term incentives for senior contributors whose grants are expiring (for example, Euler Labs co-founders have had no increase in five years and current vesting schedules end in December)

Delegating this authority does not reduce accountability. The Foundation retains its mandate to run as a not-for-profit entity overseeing the protocol and to do what’s in the best interests of the DAO at all times, and will continue to operate transparently and in consultation with the DAO, as it does today. Indeed, Euler recently scored 39/40 on Blockworks’ token transparency framework thanks to work carried out by the Euler Foundation and Euler Labs, underscoring this commitment. If this proposal passes, the Foundation will provide quarterly spending reports to show how treasury resources are being deployed and to gather community feedback for future spending plans.

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Source: https://blockworks.co/token-transparency

What this proposal achieves is agility: equipping Euler with the ability to convert today’s momentum into long-term dominance. The project stands at a pivotal juncture. By empowering the Foundation and Labs to lead, the DAO can secure the partnerships, talent, and capital required for the next five years of growth.

2 Likes
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We are in favor of an executive led management coupled with vigorous accountability and transparency. The Euler team has earned our trust over the years with their conduct and how they have gone about building and delivering Euler products under very difficult circumstances.

Lemniscap supports this proposal.

1 Like
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We at CMT Digital have known Michael and the Euler team since 2022. Their commitment to transparency and accountability, coupled with the ability to execute and ship on their vision of Euler v2, has proven to us they are one of the highest quality teams in DeFi. This proposal will go a long way to make governance more efficient and over the long run, will continue to solidify Euler as one of the most utilized protocols in the onchain lending environment. Enabling Euler to convert its current momentum achieved with growing TVL to +$3b, into dominance for years to come, is critically important, and this proposal will go a long way in making this a reality. The team has operated with a high degree of transparency and has showcased their ability to execute in real-time this year, and because of this, I support the proposal.