Loopring participated in the dxDAO and earned 10.5% of the DAO’s total Reputation (~voting power). We take this seriously and are excited to contribute to this important governance experiment. This post briefly describes how that came about, and what we plan on doing with it.
The dxDAO is a next-generation Decentralized Autonomous Organization for community governance of software protocols. This DAO is an experiment in coordination with an initial focus to govern/guide Decentralized Finance, beginning with taking over control of Gnosis’ DutchX trading protocol.
In May, we participated in the dxDAO initialization by locking up a significant amount of LRC for one month, for which we earned Reputation — our say in the system. The result is that we’ve earned 10.54% of the Reputation, which represents the most held by a single address.
For context, the 2nd and 3rd largest Reputation holders own 8.4% and 7.7%, respectively. 399 addresses participated and received Reputation, with 7 addresses controlling >50%. Further distribution stats can be found here.
The Loopring-controlled address which holds this Reputation is 0xfE3619eEB34501379B479256d3B90dc83CaB8273. This was staked from (and returned to) the Loopring Ecosystem Advancement Fund (LEAF).
Our motivation can best be seen in the tweet thread below, but suffice to say we wanted to get involved because we find it important, interesting, and pertinent given Loopring’s nature as an open DEX protocol — with decentralized governance needs that will eventually call on the community.
It should be noted that Loopring has plans to build a DAO of its own, specific to our protocol parameters and considerations. Excitingly, this LoopringDAO can inherit some of this dxDAO Reputation — and conversely, the dxDAO may earn voting power in the LoopringDAO. Each DAO having a say in the other.
The dxDAO Reputation distribution is complete, and the governance phase is now live! That means anyone is able to put forth a proposal for the dxDAO to vote on, and enact. It also means that the ‘creators’ of the dxDAO have set it free, and it is now a being of its own, ready to make decisions and evolve.
As such, Loopring wants our first proposal to give back to the dxDAO and help with distributing the Reputation more broadly. Specifically, we want to donate/distribute/auction 0.5% of the dxDAO Reputation according to some manner voted on by the dxDAO itself. Please see and help discuss here.
Once rough consensus becomes clear on the most desired distribution(s) of this 0.5% Reputation, we will make a formal proposal to the dxDAO. Of course, we will make and participate in other proposals as well.
A guide on how to submit proposals can be found here. The interface for these governance decisions can be found here. The dxDAO is built on DAOstack technology and consensus protocol.
We are truly excited to take part in this journey and have already learned tons. Governance is a critical component to trustless trading — a tenet Loopring protocol is quite literally built on. Moreover, now that Loopring v3 is handling Ethereum scaling with ZKPs, we feel it is time to turn part of our attention to the mechanisms which will ensure Loopring becomes a ‘super-scalable organization’.
Please get involved in these discussions here on the DAOtalk forum, or via any of our normal channels. We’d love to hear what the community has in mind for other proposals.
Loopring is a decentralized exchange protocol utilizing zkSNARKs to bring highly scalable, non-custodial trading to the masses. You can sign up for our bi-weekly update, and learn more at:
⭑ Twitter: twitter.com/loopringorg
⭑ Reddit: reddit.com/r/loopringorg
⭑ Telegram: t.me/loopring_en & t.me/loopringfans (Chinese)
⭑ Discord: discord.gg/KkYccYp
⭑ GitHub: https://github.com/Loopring
⭑ Kakao: open.kakao.com/o/gJbSZdF (Korean)