Element DAO

References:

https://optimism.showkarma.xyz/ Github https://www.showkarma.xyz

Sentence Summary

This proposal aims to implement an Analytics suite for DAO governance contributions, providing Element Finance with tools to take data-driven actions that increase engagement, accountability and, ultimately, foster DAO governance automation.

Paragraph Summary

Karma aggregates and analyzes governance contributions such as voting (on-chain and off-chain), delegation, Discord / Forum discussions and any other sources the DAO uses for governance. Aggregated data is then transformed into actionable insights displayed via a custom dashboard. This provides visibility into delegation activity, helps token holders make delegation decisions and allows delegates to monitor their own activity.

Karma also has the functionality to generate contribution scores that can be used for a number of governance actions, such as building custom voting vaults to assign additional voting power, assigning access & permission, distributing rewards (governance mining) and assisting with compensation (see https://forum.element.fi/discussion/7316-egp-phase-1-gsc-compensation).

The following sequential work packages outline the project scope:

1. Indexing Contributions

Karma will index Element Finance sources relevant to DAO governance contributions. These include (but are not limited to):

• Delegation stats
• Snapshot voting stats
• On-chain voting stats
• Forum activity (proposals initiated, discussed, posts discussed, likes received etc.)
• Discord activity

2. Scoring Contribution (Optional)

For a simplified review of governance activity and possible follow-up actions, Karma will aggregate Element’s different contribution data and optionally calculate respective scores. However, since governance contributions vary from DAO to DAO and have different significance in them, the scoring will be customized in close coordination with the DAO.

You can find the scoring model Gitcoin uses here https://github.com/show-karma/reputation-scores/blob/main/src/score/gitcoin-health-score.provider.ts

Note: the scoring logic is open source, so the Element Finance can audit and verify the scores themselves. The aggregated data is exposed through APIs and can be freely integrated with other applications as needed.

3. Actionable Insights via Contribution Dashboard

A governance dashboard (hosted on Element Finance’s subdomain) can be set up to display contributor stats. Features include:

• Display high-level voting stats
• Display voting history from Snapshot/on-chain
• Display delegate commitment message
• Display delegate voting reason for each proposal
• Optional display of Contribution Scores to summarize all activity, incl. proposing, commenting etc.
• Token Delegation right from the dashboard

https://optimism.showkarma.xyz/

https://optimism.showkarma.xyz/profile/0x406b607644c5d7bfda95963201e45a4c6ab1c159#statement

https://optimism.showkarma.xyz/profile/0x406b607644c5d7bfda95963201e45a4c6ab1c159#votinghistory

4. Governance Action & Automation via Credentialing

Based on the contribution scoring, governance credentials can be minted as non-transferable NFT badges (SBTs). Here, it has proven useful to define threshold values and assign corresponding memberships (e.g., GSC). Triggered actions can be, for example, the allocation of rewards and compensation.

Note: Karma is fully composable and believes in the power of DAO Governance Legos. Further permissioning based on scores (such as token-gating communication channels) could be added in collaboration with players such as Guild.xyz, Hats protocol or others.

Motivation

The Governance Steering Council (GSC) has been set up as a key governance body through which the community governs the DAO’s decentralization. GSC - a group of elected representatives and equipped with delegated voting power - mitigates the need for individual voters to actively participate in governance and thus reduces the risk of voting fatigue.

However, delegation often comes at the expense of transparency and accountability. The monitoring of a delegatee’s performance takes time and cognitive effort. Further, existing tools and information sources are not geared towards DAO-specific delegation requirements.

Karma fills the gap and provides Element Finance with a modular, expandable solution for governance (contribution) analytics. The resulting visibility layer enables informed governance actions & automation.

Previous Work

The Karma team is experienced in building high-quality, scalable software systems and has deep expertise in DAO governance. Mahesh Murthy - the founder of Karma and responsible for Technology, Product & Operations - has built complex software systems from the ground up. Kathleen Olstedt, Business Generalist & Governance Strategist has advised Web3 organizations with Bankless Consulting and was part of Idle Finance’s Treasury League.

A few notable implementations are:

• Optimism: Karma has been commissioned to revamp the Optimism Delegation Dashboard, and add new visibility features in an iterative process.
• Gitcoin’s steward health cards are powered by Karma. All the stats are calculated by Karma and exposed through API that is rendered by their frontend.
• ENS DAO uses Karma’s discourse forum plugin to display governance stats of DAO participants inside their forum profile.
• Idle Finance uses Karma for governance mining to reward active governance participants.

Grant Size & Distribution

This project is solely to improve the governance of Element Finance by providing more visibility into Governance Contributions. We are requesting a grant of $15k in ELFI to support the development and maintenance of this project and do not plan to distribute the tokens.

We are aware that ELFI is currently illiquid, so we are willing to wait till the token unlock event occurs at which time we can be awarded an equivalent amount of ELFI based on the market price of token. We will wait until the ELFI price is stable.

Milestones

1. Set up a dashboard with delegation function, snapshot and forum integrations and any additional sources which may be defined in interaction with the community. ($7.5k)

2. Define and set up Scoring based on feedback from the community ($3.75k)

3. Set up Minting for Governance (Contribution) Credentials as non-transferable NFTs ($3.75k)

Accountability

Just as Karma brings accountability to DAO governance, we also place the highest demands on ourselves.

As the implementation is done on behalf of the DAO participants, accordingly we will transparently report each milestone here in the forum and address open questions. You can find our accountability thread on Optimism here.

After completion of the project, we will conduct a survey to assess the quality and possible suggestions for improvement. In addition, we will be available as consultants for future additions and extensions.

Next Steps

1. Discuss concerns or questions regarding the Analytics Suite 2. Conduct a snapshot poll to approve the implementation 3. Mile-stone-based Implementation