A few days ago, we had shared a three-month progress report on DFYN.
In line with the natural evolution of DFYN, the team is proud to announce the release of its governance portal. This launch is another step in the direction of transitioning DFYN into a community-owned and operated project.
The community will now be able to participate in voting to drive the overall direction of DFYN.
What is Decentralized Governance?
A quick primer is in order for those unfamiliar with DAOs. Unlike most traditional companies with corporate structures that centralize authority with in a small group of executives and board members, DeFi protocols often opt for a different organizational strategy: the DAO. Decentralized Autonomous Organizations operate as a network of contributors spread across the globe. While this physical decentralization is important, DAO’s take decentralization a step further by also spreading out decision-making power. In the case of Dfyn, this power will be placed in the hands of $DFYN token holders.
Decentralization is critical. It ensures that the community’s voice is heard, and creates a meritocracy where the best ideas rise to the surface. Anyone can contribute ideas, create proposals, and vote so that the best of these bubble to the surface and become a part of the product.
Governance will also play a key role in shaping the upcoming Dfyn staking vaults. Similar to the xSushi model, this will allow DFYN holders to stake their holdings into a single asset vault, mint xDfyn, and share a part of the AMM fees.
Dfyn’s mission is to create a thriving multi-chain ecosystem and onboard the next wave of crypto users into DeFi. A healthy and highly engaged community is imperative to achieving this mission and making it a reality.
The launch of governance is a major step toward achieving this goal. In addition to being a concrete use case for the DFYN governance token. Decentralized governance will also add a degree of transparency and a measure of broader debate around important decisions related to product strategy or product features. With the DFYN DAO, the community members are not just passive spectators but active participants in the product’s journey and evolution.
What can we expect with Governance
The governance portal is now live on Snapshot.org, allowing the community to create new proposals and vote using Dfyn tokens. A governance discussion forum will also be launched shortly, allowing in-depth discussions on governance-related topics.
A #governance channel has been added in the Discord channel of the Dfyn community to allow focussed discussions related to governance. You can join the Discord channel of Dfyn following this link.
The Dfyn community will also be able to discuss and vote on decisions related to the farming programs, roadmap, and important topics, like the next chain Dfyn should launch on. In extreme cases, the community will also be able to intervene in existing farms and vote for a change of parameters or discontinuing existing farms if there is a consensus. With our governance module, the community will become key participants in the Dfyn decision-making process.
Upcoming First Governance Proposal
Dfyn’s Proposal voting page at https://governance.dfyn.network.
The initial version of the governance platform will be launched via Snapshot.org. Initial governance discussions will be held within the Dfyn Discord server under the #governance channel.
The first topic of discussion to be voted on by the community will be regarding platform revenues and buybacks. We recently conducted a $600k buyback, which is currently sitting in a 50/50 DFYN/USDC LP. The community will decide if:
- 300k USDC should be used to buyback additional DFYN
- 300k USDC should stay in the liquidity pool
- Redistribution of the bulk of fees to Dfyn stakers once xDfyn vaults are ready.
(xDfyn will be similar to xSushi/veCRV model — Dfyn holders will be able to stake Dfyn in a single asset vault and will be able to earn a share of the fees)
- (Option 4) Some other option proposed by the community (on Discord in the #governance channel)
One advantage of buying back would be significantly less DFYN on the market. The downside would of course be removing liquidity from an active market pair.
Let the debate begin! We are excited to facilitate the transition of DFYN from a fledgling product taking its tentative steps into something that the community can now actively mold and shape and grow going forward.
The proposal will be open for discussion on Discord until August 23 (Monday) at 1 PM UTC after it — the most popular suggestions for Option 4 will go live on the snapshot proposal for voting next week, along with the other three options mentioned above.
Dfyn is a multi-chain AMM DEX currently functional on the Polygon network. Dfyn nodes on various chains act as liquidity entry and exit points into the cross-chain liquidity super mesh that is being enabled by Router Protocol.
Discord : https://discord.gg/yjM2fUUHvN
Telegram Announcements: https://t.me/dfynofficial