Welcome to your weekly dose of DAO news! In this newsletter, we'll cover the most important changes, proposals, and developments within the DAO ecosystem. Stay up-to-DAO with the latest trends and innovations as we delve into the dynamic world of decentralized governance.
DAO News 📰
🥭 Mango DAO Approves $223K SEC Settlement
Mango DAO has officially approved a proposal to offer a $223,228 settlement to the SEC to resolve allegations of securities law violations. The settlement, if accepted by the SEC, requires Mango DAO to destroy all MNGO tokens in its possession within ten days and cease all MNGO-related activities in the U.S. Additionally, the DAO will work to remove MNGO tokens from all trading platforms and refrain from future MNGO offerings unless properly registered under U.S. law. This move follows the 2022 Mango Markets exploit and aims to mitigate ongoing regulatory scrutiny.
Source: cryptodaily.co.uk
🤝 Xai Partners with Gauntlet to Enhance DAO Governance and Treasury Management
Xai, a gaming-focused Layer 3 network associated with Offchain Labs, has teamed up with Gauntlet to develop a stake-weighted governance mechanism for the Xai DAO. The partnership will focus on decentralized governance, including ecosystem budget allocation, protocol upgrades, and treasury management. Gauntlet will implement strategies for liquidity management, risk hedging, and leverage ETH staking.
Source: thedefiant.io
🧐 Curve Finance Founder Faces Community Backlash Over $6.3M Funding Proposal
Curve Finance founder Michael Egorov's request for $6.3 million in CRV tokens from the DAO’s Community Fund has ignited controversy among DAO members. The proposal, intended to support ongoing development and maintain a 25-person team, has been criticized for its lack of transparency, with members calling for a more detailed breakdown of how the funds will be used. The request represents a significant departure from the DAO’s typically conservative approach to resource allocation, raising concerns about long-term sustainability.
In response, Egorov has acknowledged the need for more transparency, proposing bi-annual reports to address these concerns, but the community remains divided on the proposal's approval.
Source: cryptoslate.com
🚨 USDD Removes 12,000 BTC from Collateral Without DAO Approval, Sparking Governance Issues
USDD, the algorithmic stablecoin tied to Justin Sun and the TRON blockchain, has withdrawn approximately 12,000 BTC from its collateral reserves without seeking approval from its DAO. This unexpected move, which contradicts USDD’s prior claims of decentralized governance, has led to significant concerns within the community. The removed BTC was previously listed on USDD’s transparency page but has since been excluded, raising questions about transparency and the stability of USDD’s reserves, which are now significantly depleted.
Source: cryptotimes.io
⚖️ Hong Kong Lawmaker Urges Government to Consider DAO Regulation
Following a landmark ruling by the Hong Kong High Court involving Mantra DAO, lawmaker Johnny Ng has called for the government to establish legal regulations for DAOs. Ng believes that regulating DAOs could strengthen Hong Kong's position as a global Web3 hub, attracting both talent and investment. The court ruling, which ordered the disclosure of financial details in the Mantra DAO case, is seen as a significant legal precedent for the global Web3 industry.
Source: blockhead.co
Weekly DAO Changes 📊
New DAOs State
Over the past week, a total of 92 new DAOs were created, reflecting a 0.05% addition ratio in the DAO ecosystem. The majority were created through Snapshot (51), followed by xDAO (21), Aragon (18) and Colony (2).
Top 3 Biggest Gainers and Losers
This week saw significant movements in the DAO space, with Vow Governance leading the pack by gaining $23,925,892.90, a dramatic 183.83% rise in treasury value, thanks to a strong 183.8% increase in the $VOW token. SuperRare DAO also had an outstanding week, with its treasury value soaring by $44,898,380.68, reflecting a 137.24% increase, largely fueled by a 147% surge in $RARE token value. VIDT DAO rounded out the top gainers, experiencing a $1,039,567.94 increase, which corresponds to a 39.62% growth, driven by a 36.7% rise in $VIDT token value.
On the downside, Spool DAO faced a significant downturn, with its treasury value shrinking by $4,429,020.12, a 43.65% drop, primarily due to substantial fund outflows. Agave DAO also struggled, witnessing a $1,384,761.25 decrease, marking a 36.53% drop, influenced by a 41.1% decline in $AGVE token value. AladdinDAO similarly saw a reduction, with its treasury falling by $531,044.69, a 31.24% decrease, attributed to large outflows of funds.
Governance Activity
The past 7 days, a total of 229 new members joined the DAO ecosystem, representing a minor increase of less than 0.01% in total DAO voters. Additionally, 229 new proposals were submitted, marking a 0.05% increase in overall proposal activity.
Proposal Participation Highlights
DEFI DAOs
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Arbitrum DAO: Should the DAO Create COI & Self Voting Policies? - 1,741 voters.
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Equilibria Finance: [Epoch #63] Weekly Pendle Gauge Vote - 253 voters.
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Floki: Invest $200,000 from the Floki Treasury in the Simon's Cat token - 174 voters.
NFT DAOs
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The Sandbox DAO: SIP-11: The DAO to fund The Sandbox Ambassador Program - 181 voters.
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The Sandbox DAO: SIP-12: Run a Sandbox Academy in the Philippines - 177 voters.
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Apecoin DAO: AIP-489: Restoring Balance - 41 voters.
Noteworthy Active Proposals 💡
🎊 Delegate Gitcoin’s GloDollar for Public Goods Funding
Gitcoin is proposing to delegate $100K worth of GloDollars to fund public goods over a 12-month period. The yield generated from these stablecoins, under GloDollar's "Automatic Public Goods Funding" mechanism, will be directed towards charities such as Gitcoin, Giveth, and Protocol Guild. This move aligns with Gitcoin's broader mission to support impactful projects through decentralized finance tools. The community will be informed of developments, with an option to reclaim the $100K USDC at the end of the delegation period.
Voting ends on August 22, 2024.
Full Proposal: Delegate Gitcoin’s GloDollar to fund public goods via GloDollar
🎓 Empower Filipino Students Through Sandbox Academy
The Sandbox DAO is considering launching Sandbox Academy in the Philippines, aiming to equip college students with practical game development skills on The Sandbox platform. This initiative, requesting 51,560 SAND, will span six months and include both on-site and online workshops across multiple universities. By fostering collaboration among creators and enhancing the skill set of students, the program seeks to contribute to the growth and engagement within The Sandbox ecosystem while empowering participants to excel in the digital gaming industry.
Voting ends on September 04, 2024.
Full Proposal: SIP-12: Run a Sandbox Academy in the Philippines
💼 Arbitrum DAO Weighs New Treasury Management Strategy
Arbitrum DAO is reviewing a proposal to establish the Arbitrum Strategic Treasury Management Group (ASTMG), which would manage 250 million ARB tokens under the guidance of karpatkey. The plan aims to ensure long-term financial sustainability, enhance ecosystem growth, and maintain transparency through oversight by a DAO Oversight Committee. The proposal includes a 1% management fee for karpatkey and an annual $180,000 ARB budget to support the committee's operations. Key priorities include optimizing yields, expanding liquidity, and diversifying the treasury to safeguard against market fluctuations.
Voting ends on August 23, 2024.
Full Proposal: Strategic Treasury Management on Arbitrum
🚀 Launch an EtherFi/Stablecoin Aave v3 Instance
Aave DAO is discussing the potential deployment of a specialized Aave v3 instance focused on facilitating stablecoin borrowing for weETH holders. The current demand for borrowing stablecoins using weETH as collateral has outpaced supply, prompting the need for a dedicated instance. This proposed market would include assets such as weETH, USDC, pyUSD, and FRAX, with dynamically managed risk parameters to ensure efficient liquidity. Additionally, a stablecoin deposit incentive program is suggested to improve liquidity in this new instance.
Voting ends on August 23, 2024.
Full Proposal: [ARFC] Deploy an Etherfi/Stablecoin Aave v3 Instance
⚡ Boosting Governance Participation at SafeDAO
StableLab is proposing a comprehensive strategy to enhance governance accessibility and participation within SafeDAO. The proposal seeks $35,000 in USDC funding to support activities such as regular governance updates, onboarding sessions, and community engagement initiatives. These efforts aim to increase voter turnout, reduce abstention rates, and encourage more high-quality proposals, ensuring that SafeDAO governance is more inclusive and effective.
Voting ends on September 2, 2024.
Full Proposal: [SEP 38] [OBRA] Governance Accessibility and Participation Enhancement at SafeDAO - StableLab
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⚠️ Disclaimer: The information provided in this newsletter is for informational purposes only and should not be considered as financial advice. Readers are encouraged to conduct their own research before making any investment decisions.