DAO Improvement Proposal #001 - Delegation of MMG Tokens for Governance Voting

PROPOSAL CHAMPIONS Eskender Abebe, Product Manager Cam O'Donnell, DAO Strategist April Kim, Product Analyst - Decentralized Autonomous Organizations (DAOs) Erikson Herman, DAO Strategist

SUMMARY This proposal describes a delegation system for MMGDAO tokens with the goal of boosting participation in the DAO's governance. By enabling highly invested members to publicly advocate to increase their vote weight, they can act as proxies and serve on behalf of the community. By allowing token holders to delegate their tokens, less engaged members can still participate via their elected proxy. As a result, the DAO will be better able to engage its members and fund worthwhile initiatives.

MOTIVATION The primary goal of this proposal is to increase involvement and participation in the governance of the DAO. There may be token holders who are unable or unwilling to participate in governance actively but still want to have a say in the direction of the DAO. Delegation helps to mitigate this issue by providing a simple method to involve currently idle MMGDAO tokens and/or ConsenSys employees in the governance process.

Delegation also helps to increase token participation through direct representation. Common delegation mechanisms allow the token holder to withdraw delegation at any moment. Presenting the process with natural checks and balances. Moreso, this aids in lessening voter apathy–the increased strain of burnout from casting many votes–which is a significant problem in DAO governance models.

MISSION & VALUES ALIGNMENT This proposal aligns with the DAO's mission of diversifying governance participation by empowering interested members to seek delegation and offer differentiated ways of participation; whether that be direct or passive governance. These members should understand each proposal and act as a bridge between proposals, vote outcomes, and related stakeholders. Delegates will ideally transparently promote the DAO’s core values.

Delegation framework The proposed framework for delegation is to leverage a simple 1 token-1 vote framework, executed through the Snapshot platform.

Snapshot delegation offers a number of key benefits for users and decentralized organizations, which are as follows:

Encouraging participation: By allowing token holders to delegate their voting power, Snapshot increases overall participation in governance processes, ensuring that more voices are heard and that decision-making is more inclusive.

Empowering expertise: Delegation enables individuals who may not have the time or knowledge to vote on every proposal to entrust their voting power to those with more experience or domain expertise, leading to more informed decisions.

Reducing voter fatigue: Delegation helps combat voter fatigue by allowing token holders to delegate their voting power to someone else, reducing the need for them to stay up-to-date on every proposal and vote on each one.

Enhancing security: Since Snapshot is an off-chain voting platform, delegating voting power does not involve transferring token ownership, allowing users to maintain full control over their tokens while still participating in governance.

Gasless voting: Snapshot's gasless voting feature eliminates the need for on-chain transactions, saving users from paying transaction fees, making governance more accessible, and promoting broader participation.

Cons

The delegation of tokens from one wallet address to another requires a gas fee (gas fees are also required if one wants to rescind their delegation)

Solution

We will be creating a Google Sheet where DAO members who have delegated their vote via Snapshot can request an ETH reimbursement

ROADMAP / NEXT STEPS

In line with many of the initial comments regarding this proposal and given that the true end goal of delegation is to achieve the best decision possible, we would like to introduce a more inclusive approach to grant application curation at the top of the funnel while simultaneously introducing the option for one to be able to delegate their voting power.

In this manner, MMG token holders have the option to either keep utilizing their tokens for voting (with the increased utility of grant application curation) OR to simply delegate their voting power.

We would also like to point out that we will be utilizing the "delegation" strategy within Snapshot (https://snapshot.org/#/strategy/delegation), meaning that if the person who delegated their Voting Power decides to cast a vote, the vote of the delegate will not count.

If MMG holders vote yes (and approve the usage of Snapshot delegation), the delegation process will be executed as follows:

Phase One (May 5, 2023):

Snapshot Voting Delegation Introduced

A Google Sheet will be created where all potential delegates will be encouraged to add key information about themselves (Delegate name, brief description of their role at ConsenSys and within the web3 ecosystem and why they would like to be a delegate, wallet address)

MMG token holders will be free to delegate their voting power to whomever they prefer (there will not be a vote to select a specific number of delegates)

*Process for delegating $MMG voting power within Snapshot:

Once one has decided on a suitable delegate, MMG token holders can visit the MMG Snapshot page, connect their wallet to Snapshot, and select the ‘delegate’ option on the upper left side of the page *Note: delegation is not currently enabled so the ‘delegate’ option is not currently present

While on the delegate page, input the address of your chosen delegate, and select ‘confirm’. This will bring up a wallet transaction that occurs on-chain that you will need to sign (this will cost gas)

Once the transaction is confirmed, you have delegated your voting power

If you wish to un-delegate your votes, you can navigate back to the ‘delegate’ page and a list of all of your delegates will appear along with a button that allows you to un-delegate your votes (this will also cost gas).

Finally, please note that your $MMG tokens never leave your wallet during this process (this process simply transfers the voting power of your tokens…plus the tokens are soulbound :P)

Background Information

Snapshot Delegation Background https://docs.snapshot.org/user-guides/delegation

Governance Performance Indicators (GPIs)

Generally speaking, governance performance should map out clear, growth-focused, and trackable metrics to determine successful operations. Some of these metrics include total token participation, wallet participation, and communication throughout the governance decision-making process.

The following GPIs are subject to feedback:

GPIs Targets Grow the monthly MA token participation by 10% Increase wallet participation, measured through delegation or direct voting

50% positive feedback from a DAO-sampled population

These can be measured by tracking the number of tokens delegated for voting purposes and the number of votes cast through delegation. These GPIs will indicate whether the collective cost of governance is decreasing.

PROPOSAL SUCCESS CRITERIA The success of this proposal is evaluated in two steps. First is the discussion regarding delegation design, the formal design, and subsequent voting. Second, if passed, the implementation, monitoring, and growth of MMG governance delegation.

AUTHOR BACKGROUND Eskender and Cameron both work at ConsenSys and are members of MMGDAO. They believe that delegating MMGDAO tokens for voting purposes is a step in the right direction toward achieving the DAO's mission and values.

April Kim is a Product Research and Development team member at ConsenSys and co-leads operations of MetaMask Grants DAO.

Erikson Herman is a DAO Strategist at ConsenSys and co-leads operations of MetaMask Grants DAO.