the token episode part 2 || DT Weekly #32
why governance tokens are necessary, SEC claps DAO hacker, on-chain governance is so in
salutations my DAO loving friends!
this is DAO talk weekly. but you probably already knew that, if you didn’t: welcome to DAO talk weekly. this is your one stop shop for everything DAOs. we scour all the week’s DAO happenings, governance debates, & twitter hot takes and distill it until a short, sweet, & sassy weekly newsletter.
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enough chit chat, let’s get to the DAO news.
🧠 those sweet, sweet governance tokens
if you’ve been with DAO talk studios since the beginning, you are no stranger to the governance token debate. we have aggressively called out the financialization of governance & will continue to do so but the complete dismissal of app-layer governance tokens is naive.
0xdoug puts it beautifully in this 10 tweet thread, “without transferable tokens governance power is locked and bounded to its original holders. That’s neither sustainable nor decentralized.”
governance token value accrual is not inherently evil, “governance without rent extraction compromises the economic security of the protocol. No value accrual means low barriers to ‘highly profitable traders’ attacking the protocol.”
going even further, builders should not balk when designing their governance token value accrual mechanism but instead invest significant resources into the process, “thinking hard about how a rent extracting governance token fits into the protocol design is the only way to build a long-term sustainably decentralized app layer.”
the system isn’t flawed. humans are flawed. financial exploitations of governance tokens aren’t inevitabilities as the narrative would have you believe but a consequence of poor design & a nascent industry. we’ll keep you posted on the projects building better systems!
🚓 don’t f*ck with the SEC
turns out you shouldn’t manipulate a protocol, steal millions of dollars, and then brag about it on twitter. who told this mans the U.S. government takes nicely to being taunted?
🗳️ Some governance is good governance
governance = good (even when you don’t think it is)
markets change, humans change, users change, tech changes. change change change change. as CLG put’s it: “launching immutable code is fucking scary, you better be damn confident your code is pristine and assumptions valid.”
go deeper: the pioneer of ‘ungovernance’ Ameen Solemani (former DAO Talk guest) laments the pitfalls of Reflexer’s current ungoverned predicament
📈Ethereum upgrades soon™️
big year for Ethereum. *send tweet*
👻 Aave votes on-chain
Aave votes ON-CHAIN to activate V3.0.1 on main-net
gg team!!! looking forward to what the Aave gigabrains cook up next
⛰️ DAOs at Denver is the DAO event of ETH Denver
Eth Denver is right around the corner & the team that brings you DAO talk is throwing an intimate DAO event on February 28th from 2pm-6pm! Would love to see you there!
upcoming Rehash season 4 schedule is packed with elite DAO builders!
what a time to be a alive.
that’s it from DAO talk weekly #32. let us know if you liked/loved/hated/ this edition. all feedback is welcome and appreciated!
see ya next week!
your friendly neighborhood DAO talk bois
Gm Gm, Really loving this piece and the work you do here. I also run a web3 news substack for underrepresented creators called Facesofweb3. Would you be open to a recommendation exchange? Our subscribers need to be able to find each other!
Great job, once again!