PIP-62 - Velora Governance Task Force

[SEEDGov]

Taking into account feedback received from some delegates and stakeholders in regards this proposal, we believe it is necessary to make a clarification and express consistency with our activities since joining the DAO:

The administrative tasks that we, as the Governance Task Force, are proposing to take on as a result of the remarkable increase in the DAO’s activity that we have promoted, are not an end in itself, as its intended purpose is to have an impact on the growth of the Protocol, its activity, volume and revenue. In other words, organizing, structuring and professionalizing the DAO and attracting talent is not the endgame, but a necessary starting point and solid foundation for the DAO to provide real value and generate concrete impact for Protocol’s growth and success.

@SEEDGov

Oversee and coordinate the alignment and prioritization of the strategic proposals needed for the DAO to drive the protocol’s growth and coordinate efforts accordingly.

@SEEDGov

Our goal remains the same: to strengthen the DAO, enhance its activity, and help it become a driving force behind the protocol’s growth. We believe the DAO has immense potential and want to contribute by coordinating efforts to accelerate its transformation.

@SEEDGov

With the focus on driving the DAO forward and contributing to an informed, engaged, and active community, we’ll commit to exploring initiatives to expand participation and attract talents that make up the Velora growth.

@SEEDGov

Our focus will be on fostering better decision-making, strengthening DAO structure, raising the quantity/quality of debate, attracting talent, increasing partnerships, and identifying areas where the DAO can actively collaborate to support and drive the protocol’s growth.

@SEEDGov

Strengthening these initiatives will help establish more predictable and robust structures, fostering effective collaboration among stakeholders to drive the growth of both the DAO and the protocol.

Our role has been — and will continue to deepen — with the sole objective of ensuring that the DAO has a tangible impact on the growth of the protocol and this has been our approach from the very beginning.

Our first major involvement with the DAO was the post, not coincidentally called ‘Driving Protocol Success through Optimized Governance’, which was a research and a comprehensive report on the state of the Protocol and the DAO towards mid to late 2024, and the path we the DAO should take to effectively make an impact on the growth and success of the Protocol.

@SEEDGov

The landscape we’re about to present is a call to action for the community, particularly for the DAO and all interested parties in ParaSwapDAO. The DAO must be a driver of the protocol’s success, in coordination with the Foundation, Laita, and the core team, to capture market share and users, addressing current challenges and contributing to the future of ParaSwap.

It is with this objective in mind that we have taken the initiatives we have, in particular the formation of the ParaSwap Growth Working Group (PGWG), whose purpose is that ‘the DAO engage, collaborate and provide support with @Laita and ParaSwap @foundation in developing initiatives to support the growth of the ecosystem’ and ‘provide a framework for the DAO to execute the growth tasks that are identified and to follow the right path’.

The PGWG will be soon presenting its final work proposing the creation of a Growth Committee with a detailed framework, looking towards designing strategies for the growth of the Protocol. We as the Governance Task Force aim to have an important presence and participation (non-compensated) in this structure to coordinate its efforts and be the liaison with the other structures of the DAO, the Foundation, Laita and other stakeholders to avoid overlap and maximize its value.

Coincidentally, we have structured our payment proposal so that the amount of the performance payment depends solely on the protocol revenue, so that if the protocol revenue goes down, our payment will go down, and if the protocol revenue goes up, our payment will go up, but in that case setting a low cap (60,000usd/year).

@SEEDGov

As far as the budget is concerned, we are defining the cost structure as proposed, with a part in PSP token depending on the performance of the protocol, since our activity, in addition to the administrative tasks, is aimed not only at increasing the activity of the DAO as an end in itself, but also at having an impact on the profits of the protocol. This is the goal that motivated the creation of the PGWG and the Growth Committee, whose main objective is to generate growth for the protocol and new partners/integrations. Similarly, establishinhg the role of the Treasury Manager is not only to manage the treasury but also to ensure that it generates returns and income. Similar is the case of the Grant Program to be developed to attract talent to develop solutions for the Protocol, with the logical ulterior purpose of achieving a better product to expand its market share and revenues.

In other words, if we achieve the desired impact, with the performance amount in PSP token our incomes can increase (with a cap) according to the increase in the protocol’s revenues, i.e. without increasing the proportion or share of the DAO’s expenses to its revenues, and with the low cap (which is achieved with an increase of only 10% of the protocol’s revenues) our performance incomes will not increase much even if the protocol’s revenues do. On the contrary, if despite the expected increase in governance activity, this doesn’t impact in the Protocol’s revenues, or worse, market conditions negatively affect the Protocol’s revenues, our incomes will decrease despite the increase in our work, so our performance incomes will never be a greater weight in relation to the Protocol’s flow and revenues, and may even be reduced accordingly. This is the alignment we are trying to get across, we are totally committed to the Protocol.

In summary, we would like to reinforce once again that our task will continue to be to strengthen and professionalizing the DAO as a means, becoming the driving force for initiatives with concrete impact on the growth of the Protocol, its activity, and its revenue, and to be aligned with this, part of our payments will be tied to our success in achieving this.