Gitcoin

We currently see ~10 large GTC token holders 8 with the majority of on chain voting power, and ultimately decide most on/off chain decisions. I want to change this, and one of the first steps will be to lower the thresholds so that smaller token holder’s voices will have a larger presence in the process.

We have needed to keep a number of folks above 1MM to ensure proposals can be created, but by lowering the thresholds, we can lower the amount of GTC of individuals and enable the community to more broadly decide and participate in impactful ways.

It is hopefully no secret that token delegation from larger GTC token holders is why the top 10 have the token delegation allocations they do. This has largely been to empower those with the most context to help lead and guide governance. What this actually created though is a group that feels they cannot dissent, and a community that has a diminished voice in the process.

Our current v3 gov process outlines the following:

There are two kinds of votes, off-chain and on-chain:

• Off-chain voting takes place on Snapshot and is required before any vote can be moved to an on-chain vote (if necessary). The vote period is 5 days. Use this template for reference
• On-chain voting is required in addition to Snapshot voting for proposals that would move GTC from the DAO treasury or make other key changes to the structure of the DAO. Gitcoin will be using Tally to upload on-chain proposals. The vote period is 5 days.

There is also a call out on post about quorum requirements – ie, a need for 2.5M GTC to participate in all votes for the vote to be considered valid.

Risks

Lowering the voting threshold opens us up to more governance attacks if large amount of tokens are acquired. This can be mitigated through delegation to a couple of key long term steward token holders who perhaps don’t activate those wallets unless an attack is visible. This is common and you can see this with Uni when key votes haven been decided by largely silent voters to help protect the network.

Proposed Changes to Governance

1. New quorum threshold of 1MM GTC instead of 2.5MM GTC for both on chain and off chain voting
2. Lower initial proposal threshold down to 150k GTC from 1MM GTC
3. Maintain time and duration process as outlined above**

Establishment of Guardian Stewards

The section below outlines the details of a new role that will be introduced in order to mitigate potential risks of this proposal.

1. Purpose and Function of Guardian Stewards

Role: Guardian Stewards will act as a defensive mechanism against governance attacks in the DAO. They will remain largely passive but will be authorized to activate their voting power in case of a detected attack or threat to the integrity of the DAO’s governance. Activation Criteria: Clear guidelines will be established to define what constitutes a governance attack in a separate post/thread, ensuring that the Guardian Stewards’ power is exercised judiciously and transparently.

2. Election Process for Guardian Stewards

Nomination: For the first term, Guardian Stewards will be assigned by the Gitcoin Foundation. In the future, Stewards and Core Contributors will be able to nominate candidates for the role of Guardian Steward. Nominees should have a demonstrated history of long-term involvement and a deep understanding of the DAO’s mission and governance. Voting: Once we have our first elections, Guardian Stewards elections will be conducted via a special DAO Core Contributor vote, separate from regular governance votes, to ensure fairness and transparency and that elected members are being selected by high context individuals. As we get closer to election time, there is possibility of opening up this election beyond Core Contributors.

3. Source of Tokens for Guardian Stewards

Allocation: A specified amount of GTC tokens will be allocated to the Guardian Stewards. This allocation could come from a dedicated fund or reserve within the DAO’s treasury, specifically earmarked for governance defense.

Token Stewardship: The tokens will remain under the control of the Guardian Stewards but are to be used solely for the purpose of defending the DAO’s governance process.

4. Roles and Responsibilities

Monitoring: Guardian Stewards will be responsible for monitoring voting activities and identifying potential threats. Decision to Act: The decision to activate their voting power must be unanimous among all Guardian Stewards to prevent misuse. Transparency and Reporting: Guardian Stewards will be required to provide transparent reporting on any actions taken, including the rationale behind activating their voting power.

5. Term and Accountability

Term Length: Guardian Stewards will serve for a fixed term of six months, after which new elections will be held. Guardian Stewards can run for reelection as many times as they would like. Accountability: They will be accountable to the broader DAO community, with mechanisms in place for the community to recall a Guardian Steward if necessary.

6. Title and Recognition

Title: Members of this group will be formally recognized as “Guardian Stewards” of the DAO. Recognition: This role will be documented and maintained in the Governance Manual and will be entrusted to Stewards in high esteem in the Gitcoin Community.

7. Budget

Funding: This role will not be funded due to the little amount of action that will be required.

Roles & Responsibilities if the Vote is Passed

• The Governance Coordinator will work with CSDO to ensure that the new thresholds are applied and that the Wallet Guardians are selected and allocated tokens
• The Governance Coordinator will ensure that the Governance Manual is updated with the necessary documentation to reflect this new aspect of governance
• The Governance Coordinator will keep the community updated on progress in the Governance Forum