Staking in dxDAO

[lrettig]

dxDAO is launching in a few days and it's in a bootstrap period right now where you can stake ETH or other tokens to gain reputation when the system goes live. It's a pretty exciting DAO and I think we should study it and participate in it to learn from it. We currently have 29,000 DAI in our multisig. I propose that we stake it for 30 days to gain reputation points in the new DAO. Here are the concrete steps:

1. Create a new Gnosis Safe account - I believe these can be shared among several people
2. Transfer DAI from the multisig into it
3. Use it to stake in dxDAO
4. 30 days later, claim the tokens back

Thoughts?

[timbeiko]

@lrettig Interesting proposal. A few questions:

• Where are the 29,000DAI from? The ProgPow audit?
• What is the goal of having the new Safe account? To create a proper ECH "reputational" account?
• Given the smart contract bug risk, does it make sense to only stake part of the funds?

Obviously, before taking such a decision, we should definitely air it on an ECH call. When is the deadline to stake on dxDAO?

[lrettig]

Where are the 29,000DAI from? The ProgPow audit?

Most of it is, the rest is just the ordinary funds we collect via the Gitcoin subscription.

What is the goal of having the new Safe account? To create a proper ECH "reputational" account?

Yes, since reputation is tied to an account and cannot be transferred, we want it tied to an account that we can share, like the multisig. My understanding is that this is precisely what the Gnosis Safe is designed for.

Given the smart contract bug risk, does it make sense to only stake part of the funds?

This risk always exists. I think @Souptacular needs to weigh in on this.

Obviously, before taking such a decision, we should definitely air it on an ECH call. When is the deadline to stake on dxDAO?

For sure. We have seven days left (https://dxdao.daostack.io/stake-for-your-vote).

[timbeiko]

Thanks! Let's add this to the agenda for the next call and act fast afterwards if we have agreement. It'd be great to have you on the call, @Souptacular, if you are available :-)

[wschwab]

I'm concerned about the ethics of staking funds specifically given for the audit. I feel like funds given towards a specific task should only be spent on that task. As for the other funds, though, I'd say it's fair play.

[lrettig]

I feel like funds given towards a specific task should only be spent on that task

I agree with this - and I'm not proposing spending, only staking. We'd get the funds back :)

(Yes, there is always a risk associated with a new DAO, but the code in question has been audited. We don't have to stake 100% of the funds.)

[lrettig]

Let's add this to the agenda for the next call and act fast afterwards if we have agreement

Gas prices are likely to shoot up quite high in the final day or two of the staking period - it would be better to make this decision earlier, if at all possible. Maybe we could do a vote on the Aragon DAO or something? :)

[wschwab]

I agree with this - and I'm not proposing spending, only staking. We'd get the funds back :)

I should've been more specific - I mean that I don't think the funds should be used in any way other than their allocated purpose. Staking, even if it will be returned, is not what the funds were explicitly given to the Cat Herders for. I personally feel like we're banking with other people's funds, even if it's for non-financial investments (using the funds to invest in reputation).

[timbeiko]

Gas prices are likely to shoot up quite high in the final day or two of the staking period - it would be better to make this decision earlier, if at all possible. Maybe we could do a vote on the Aragon DAO or something? :)

IMO it's probably better to pay a few dollars extra in gas over doing this in a rushed / non-consensus way. Clearly, at least @wschwab has concerns, and I think we want to align before taking that decision, even if it costs a few more gwei 😅

[brianventuro]

It would be extremely inappropriate to use funds that we contributed for the ProgPoW audit for anything but the ProgPoW audit. That is not money that we allocated to be used in testing your staking model.

[lookfirst]

Those funds are intended to pay for auditing that was supposed to already have started. There hasn't been clear communication at all about the status of the audit.

This idea borders on embezzlement of funds, which is totally inappropriate! Who cares if you get it back, this isn't your money to use for these purposes!

[sneg55]

I'm concerned about the ethics of staking funds specifically given for the audit. I feel like funds given towards a specific task should only be spent on that task.

+1. It sounds unfair that you are going to use the money raised for audit(while audit not even started)

[donamelo]

you have proven that the ethereum democracy is not existing. a group of technocrates doing what they want and calling it decentralised.

[jean-m-cyr]

you have proven that the ethereum democracy is not existing. a group of technocrates doing what they want and calling it decentralized.

Only additional proof... the technocracy has been fairly obvious for some time now! The main reason I've given up on ETH.

@lrettig - what is your link to DxDAO? Why this one, of the many experimental "investment" DAOs?