Diva Staking

DIP-03 has been curated by Moss, Ainsley To and Mona El Isa, all representing Avantgarde Treasury. They form part of the Avantgarde group which spans Asset Management, DeFi Development (eg. for protocols like Enzyme) and DAO Governance.

As per governance DAO guidelines, the proposal is brought by toast.eth, who represents 1M+ delegated DIVA tokens and therefore meets the criteria to submit a binding DAO proposal.

Scope of DIP-03

This proposal outlines the intention to enable the transferability of DIVA tokens at a future date, pending a final vote to determine the specifics of the implementation. The proposal aims to provide token holders with increased flexibility and utility while maintaining the integrity of the token ecosystem.

TL;DR

• ⚠️ What: to enable transferability for DIVA tokens, with the exact ETA to be determined, but at latest at the end of the Early Stakers’ initiative as described in DCP-01 and outlined in DIP-02 (pending approval)

• Why: To support DIVA utility models and further redistribution of ownership

Motivation

The motivation behind this proposal is to enhance the liquidity and usability of the DIVA tokens within the ecosystem.

Transferability of tokens can facilitate a more vibrant and active ecosystem environment, attract a broader range of DAO participants, and potentially increase the overall value proposition of the tokens.

The potential utility of DIVA tokens has been explored in this research piece and linked community discussion, recommending utility models for Node Operators. Transferability would be a necessary prerequisite for models involving DIVA staking, liquidity mining, etc.

This move aligns with the dynamic nature of staking protocol DAO assets and reflects a commitment to adapt to market trends and TVL growth while avoiding short-term price distortions ahead of the protocol finding its Product Market Fit.

RFC - Tempcheck Status

You can find the RFC on Commonwealth here, which was published on July 28th 2023.

The non-binding Tempcheck vote on the T&Cs has been closed out with 100% YES and 0% NO.

Description of the Proposed Future Action & Implementation

The primary objective of this proposal is to declare the intention of enabling token transferability latest at the end of the Early Stakers’ initiative described in DCP-01 and DIP-02.

The specifics of the implementation, such as the exact date for transferability commencement and technical integration, will be determined in subsequent steps following the Diva Staking DAO Community Guidelines, which currently recommend the following steps:

1. Community Discussions, to be carried in channels like Discord and/or Commonwealth.

2. Proposal Drafting, proposing the final parameters, any conditions and restrictions and any necessary technical adjustments.

3. Non-binding Temperature Check to seek full community alignment.

4. Submit DAO Proposal, including the final executable smart contract instructions.

5. Voting. It is expected that transferability will require XX quorum and XX% voting approval.

6. Execution after the Cool-down period. Necessary updates will be made to the smart contracts and any associated systems.

This process will ensure a democratic decision-making process and ensure alignment with the interests of the majority.

Conclusion

This proposal sets the stage for enabling the transferability of DIVA tokens in the open market by committing to a deadline in the future. The final decision and details remain subject to a final DAO vote that will determine the specifics of the implementation.

By providing token holders with the opportunity to trade their holdings openly, the DAO aims to enhance the overall value proposition of the tokens while maintaining a structured and democratic decision-making process. We believe that this move will foster a more dynamic and engaging token ecosystem.

Classification

As per Diva DAO community guidelines, this is a Low-Impact Diva Improvement Proposal (DIP), requiring 50% positive votes to be enacted. Low impact DIPs are intended to distribute governance power among communities and/or seal strategic partnerships, without any modification of a configurable feature of the Diva Staking protocol or update of core infrastructure that may require some code implementation.

Risk assessment

The potential risk to enabling transferability is that, if done too early before the protocol is mature enough to create liquid markets, the price of the tokens might drop to low levels. This has the downsides of:

• Lowering the value DIVA incentives, making the DAO treasury less effective

• Making the DAO vulnerable to governance takeover, as other DAOs have experienced

Therefore, the recommendation would be to enable transferability as late as possible, aligned with major development milestones like mainnet release or reaching certain TVL levels. The pros and cons of early vs late transferability should be discussed by the community.

Copyright waiver

Avantgarde Treasury, as the owner or rights holder of certain creative works, hereby waives specific rights under copyright law in favour of Diva Staking DAO. This waiver pertains to the works described as governance proposals, and includes the rights of reproduction, distribution, public display, and creation of derivative works. This waiver is granted for the purpose of this governance process. Proper attribution to us shall be provided by the recipient whenever the works are used or displayed. This waiver does not extend beyond the rights explicitly stated.