The third Streamr and first Data Unions DAO governance round has come to its conclusion. Let’s take a look at the proposals and results of the vote.
Table of Contents
Streamr Improvement Proposals (SIP) 7 and 8
SIP-7 proposes to instate a node incentive reward mechanism to bridge the gap between the Brubeck Mainnet and the launch of the full Network tokenenomics, coming in the Tatum Milestone. The rewards will work similarly to the testnets, but with the new addition of staking.
The key points are summarised as follows:
- The centralised reward mechanism built for the testnets is reused, and a similar process is continued in the Brubeck mainnet.
- To supply the mining rewards, inflate the supply at an annualised rate of 2%.
- The process is continued until it is replaced by the decentralized and open incentive mechanics of the Tatum milestone, expected in late 2022.
- Participating miner nodes earn a share of the rewards based on their DATA stake.
SIP-8 offers a solution to the problem of high gas fees on the Ethereum Mainnet, which have made creating Data Unions or making purchases on the Streamr Marketplace prohibitively expensive.
The proposal is in two steps:
- As a quick fix, move the Marketplace as-is to the xDai chain. Why xDai? The current Data Unions exist on xDai, and it’s probably best to maintain compatibility between existing Data Unions and the Marketplace at all times.
- Implement a multi-chain approach, where the Marketplace, Data Unions, and other Streamr smart contracts will exist on multiple EVM chains, creating an ecosystem that spans across different sidechains and L2s.
SIP voting results
Both SIPs have been approved by DATA holders.
- SIP-7 received an approval of 100%, with 33.51 million DATA.
- SIP-8 received an approval of 97.75%, with 32.71 million DATA in favour, and 752,090 DATA against it.
Voter turnout and DATA weighting was less than the previous Streamr governance rounds, with an average of 30 million DATA staked on this round’s proposals, compared with an average of 130 million for Streamr governance round one, and 50 million for round two. A minimum of 30 million DATA is needed to make a vote effective.
Data Unions DAO improvement proposals (DUIP) 1 and 2
As well as the SIPs, DATA holders also voted on the first governance round for the recently launched Data Unions DAO, which was created as a result of SIP-3 with the task to govern and further develop the Data Unions framework.
DUIP-1 proposes to set the Data Union protocol fee to 1%. The protocol fee works like a tax, with revenue collected on money that passes through the data union smart contract, which can be directed towards a buy and burn mechanism or used for a development fund.
The suggested rate of 1% was arrived at by collecting feedback from other Data Union builders.
DUIP-2 offers to allocate 10% of the Data Union DAO’s token, UNION, to be supplied to active DAO contributors.
UNION will soon replace DATA as the token used in governance voting and incentivisation for builders and for investors in the upcoming Data Union Springboard platform. Currently, 40% of the initial UNION supply will be allocated to DATA token holders to enable the spin-off, while the remaining 60% is as yet unallocated, and should be eventually decided upon by the DAO.
DUIP-2 proposes for 10% of these tokens to be used to incentivise DAO contributors to grow the ecosystem.
These are the details:
- 10% of the initial UNION supply is earmarked for team building.
- The Streamr team is mandated to install a Project Lead and Project Co-Lead / Deputy, and negotiate their compensation packages, including an allocation of tokens that vest over a period of several years, provided that the persons continue to contribute to the project.
- The Project Lead and Co-Lead are mandated to allocate the rest of the 10% to new contributors that join along the way.
DUIP voting results
Both DUIPs were approved by DATA holders.
- DUIP-1 received an approval of 100%, with 30.88 million DATA.
- DUIP-2 received an approval of 99.95% with 30.27 million DATA in favour, and 16,040 against it.
Follow the latest news and discussions related to Streamr governance by visiting the #governance channel on Discord.