The adventure to build one of the most decentralized and fully community-governed DAOs continues for AGLD.

Over a year ago, AGLD had proposed tokenomics and inflation mechanics to incentivize and fund growth of the Loot NFT ecosystem. However, the implementation was significantly delayed due to the multi-signature governance model, where a few individuals holding keys had to approve all decisions.

After over a year since that initial tokenomics proposal, it became clear that migrating away from the multi-sig model to a fully on-chain governance system was crucial for scaling and flexibility. The old multi-sig process created too much friction and bottlenecks for implementing changes and allocating funds to support the Lootverse & AGLD ecosystem.

That's why over the past few months, the AGLD DAO has been working closely with Llama, a battle-tested platform for decentralized governance and treasury management, to architect and vote on a new fully on-chain governance structure.

How DAOs Traditionally Govern

Most DAOs today still rely on multi-signature wallets (multi-sigs) for critical governance decisions and upgrades. With a multi-sig, a group of trusted individuals each holds one of the keys required to approve transactions from the wallet. While beneficial for security, this model becomes cumbersome and prone to human error at scale.

The Need for Fully On-Chain Governance

As the AGLD token has become widely distributed among builders of Lootverse, gaining trust from multi-sig holders to upgrade critical contracts became increasingly difficult due to the concerns. We've also had ambitious plans to further decentralize decision-making and incentivize developers building Within the Lootverse. However, it was impractical to pass every decision through the multi-sig bottleneck.

That's why we decided it was time to embrace fully on-chain governance - a more flexible system where all governance rules, voting mechanics, and treasury management for supporting Loot are encoded in smart contracts on the blockchain itself. No more individuals acting as a point of control or failure.

AGLD's Path to Fully On-Chain Governance with Llama

After exploring various governance platforms, AGLD DAO chose to partner with Llama due to their strong reputation, open source code, multi-audit history, and the fact that Llama had previously worked with Aave, Uniswap, and Lido.

With Llama, we've architected the following system:

• AGLD ERC20 token managed via new contract

• Wrapper allowing AGLD staking for governance

• NFT staking rewards contracts governed by Llama

• Multi-tier treasury for funding Loot developers/grants

  • DAO Holdings (largest) requiring AGLD token votes

  • DAO Budgets for Rewards & Grants with lower quorum

  • DAO Rewards for devs, managed by DAO committee

  • DAO Grants for contributors, managed by DAO committee

• Configurable governance with custom voting strategies

• Full UI for creating/voting on proposals

By encoding all rules fully on-chain with no ability for human override, AGLD DAO will operate the Loot ecosystem with perfect transparency and credible neutrality. You can check out the full details at this link : Loot Talk

The Snapshot Vote

From April 29th to May 1st, the AGLD DAO community voted through Snapshot to approve this transition to fully on-chain governance integrated with Llama. The vote had incredible participation, with 410 individuals voting a total of 8.1 million AGLD token - a whopping 17% of the supply on major CEXs. The proposal passed at block height 19754326 by an overwhelming majority.

This marks a new chapter for AGLD DAO as we become one of the most decentralized and resilient DAOs supporting a community and ecosystem. No individual can interfere or override the governance of the AGLD DAO, eliminating risks of human error or capture. All decisions and the rationale behind them are also transparently recorded on the blockchain thanks to fully on-chain governance. AGLD is now unstoppable and immutable, realizing Web3's full potential.

We're excited to work with the Llama team on implementation and continue pushing the boundaries of what a DAO can achieve for the community! The adventure continues…