Submission Date: 15.11.2022
RFC: Governance Procedure for Extraordinary Situations
This proposal offers to introduce a special fast-track governance procedure for the DAO to be able to react to emergency situations.
Comprehensive, profound and inclusive discussion lies at the core of the Euler DAO values. That is why, there has always been a silent consensus in place that any proposal created on the Forum should take as much time as it is necessary to let all the interested members of the DAO to express their views and concerns. Such an approach guaranteed the mission-oriented approach and contributed to the strategic vision of the EulerDAO.
However, since the launch of the DAO accompanied by the relatively neutral market conditions, the crypto world has dramatically changed. The prolonged down-trend exposed the vulnerability of the system with some, previously considered too big to fail players, collapsed. New reality requires the EulerDAO to constantly adapt to the changing environment.
The most conspicuous example is the ongoing bankruptcy of one of the largest and trusted exchanges FTX that led to the users loss of about $8 billions and extreme depreciation of the FTX native token FTT.
The DAO reacted resolutely and fast by introducing a proposal to Blacklist FTT from EUL gauges to preventively maintain security of the protocol from the technical, financial and legal point of views. Despite the proposal being published relatively quickly, the current governance system did not allow the DAO to take necessary urgent measures.
Another example of an extraordinary situation is the Ethereum Merge. Without any doubts having a completely different nature in comparison to the FTX situation, nevertheless the pre-Merge and the very Merge resulted in a series of serious challenges from the risk assessment perspective.
All the mentioned above got the community thinking that a special procedure for extraordinary situations is required.
The general flow of the governance process is as follows:
- Discuss the idea/draft proposal in the Euler Discord #governance channel
- Draft & create a RFC (Request For Comment) Proposal on Governance forum for further feedbacks
- Contact a forum moderator to create a eIP (Euler Improvement Proposal) on the Governance forum
- eIP created on Snapshot (off-chain voting)
This requires 7-14 days for the so-called temperature check on the Forum, 6 days voting via Snapshot resulting in 13-20 days for a proposal to pass. Plus the implementation time, which in case of the eIP 25 - reduction of UNI and LINK collateral factors could take up to 30 days.
In this respect the following Governance Procedure for Extraordinary Situations is proposed:
- Accept the discussion initiated in Discord as a part of the governance process.
- Set a formal RFC discussion time for 24 hours.
- The Proposal is put on a vote automatically 24h after the RFC is posted.
- The Snapshot voting time should decreased to 48 hours.
- Instruct the EulerLabs team, as the execution agent of the DAO’s decision for the DAO Phase 1, to start necessary preparation for the proposal execution once the RFC is published.
- Given the short time, the aggressive announcement campaign for a proposal subject to the fast-track procedure should be implemented by notifying the EulerDAO community via Discord, Twitter and Telegram channels [and, probably, on the app].
- The extraordinary procedure should be launched by a tentative vote, for example via for and against emojis, initiated by the CEO of the EulerLabs team. The decision should be taken by a simple majority with at least 25 people participating in the voting.
“Yes” - Introduce the Governance Procedure for Extraordinary Situations
“No” - Do nothing