PIP-54- Delegate Program Trial Period

Abstract

This proposal introduces a 3-month pilot delegation program, establishing a framework in which interested delegates can present their public platform using a specific template, with minimum participation expectations outlined.

The program is designed to address a critical issue identified in ParaSwapDAO, as highlighted in our report, whereby despite ParaSwap ranking among the top 3 DeFi aggregators and demonstrating strong activity metrics, the DAO itself suffers from concerningly low participation levels and a high concentration of voting power.

Thus, this proposal seeks to address two primary objectives: to increase both the quantity and quality of participation and enhance diversity of voices. It also allows token holders who are unable or unwilling to actively participate in governance to delegate their voting power to active delegates aligned with their vision, promoting a more balanced distribution of voting power.

Goals & review

The objectives of creating a pilot delegation program are as follows:

• Increase the quantity, diversity, and quality of participation and discussions in the forum
• Enable active community members to deepen their involvement by receiving voting power from tokenholders
• Facilitate active participation from new members and delegates interested in joining the DAO
• Boost the amount of $PSP used in voting processes
• Strengthen the DAO’s resilience and security by raising the number of governance participants, thereby making decision-making mechanisms more robust

TL;DR

The proposal comprises:

• Implementing a 3-month pilot delegation program
• Creating a delegation platform with a template that interested delegates must complete when presenting themselves in the forum
• Defining minimum participation requirements for delegates
• After the 3-month trial, evaluating the program’s results and impact to allow the DAO to decide whether to discontinue, renew, modify, or expand it. If the DAO finds the outcomes favorable, a pilot incentive system could be designed to reward committed and aligned delegates who have contributed value and shown high levels of participation.

Rationale

Experience has demonstrated that the delegation system is a vital tool in fostering participation and promoting good governance practices. One of the key challenges in governance is voter apathy, particularly when it comes to participating in votes. This problem is exacerbated when governance participants do not contribute to the creation and deliberation of proposals that ultimately determine the DAO's direction.

A delegate system allows token holders to delegate their voting power to dedicated individuals or groups who are well-versed in the protocol. This leads to increased participation and attracts informed and responsible contributions, enhancing both the quantity and quality of participation. Incorporating new voices and decentralizing voting power among various actors strengthens governance, improving its quality and making it capable of blocking malicious initiatives.

Delegate Platform

The Delegate Platform allows for interested delegates to express their principles, vision and aspirations, becoming the main communication channel for $PSP stakeholders to leverage potential delegations and monitor the overall delegates activity.

Criteria for becoming a Delegate:

• Create a Delegate Thread in the Delegation section of the forum, which should include the following items:
  • Name:
  • Wallet Address:
  • Snapshot Delegation Profile Page (and complete it):
  • Contact Information (website and/or mail and/or social media, etc.):
  • Introduction (Unipersonal or representing an organization, background, expertise, WoW and any relevant information)
  • Driver and Values (reasons of why to become a ParaswapDAO delegate, objectives, aspirations)
  • COI Disclosure (Inform potential conflict of interests and if you are currently a delegate in any other DAO)

Expectations

It is expected that delegates interested in participation in DAO governance uphold significant levels of participations, consisting of:

• Keeping a minimum 80% participation rate in votings
• Informing the community of 100% of the voting rationales and decisions within their Delegate Thread in a 7-day window after the end of each voting.

Duration

The Delegate Program Trial will last for 3 months.

Evaluation

Prior the 3 month due date, results and impact of the program will be presented in order for the DAO to asses it’s renewal, deprecation or modification.

Metrics tracking

In sight of ParaswapDAO not having a Facilitation Squad or similar structure, the DAOs team should be responsible of the upkeep of delegates metrics (participation and rationales). Being that said, we’d like @0xytocin to confirm this as viable.

SEEDGov is willing to collaborate with metrics monitoring as well as presenting a comprehensive report prior the program trial end. We expect the report to provide sufficient information regarding results and impact for the community to leverage. It’s worth mentioning no budget is requested for this task.

Next steps

• Proposal discussion and feedback
• Snapshot vote - if approved:
  • Application period - 7 days: Although any delegate willing to participate in the DAO may present itself freely in the forum, to the ends of the Program Trial only applications within the 7 day period prior the 3 month trial will be considered. Delegates who present themselves after such period may apply for a second round if the continuity of the program is approved.
  • Program Trial Start: The day after the 7 day application period.
  • Program Trial End: 3 months after the Program Trial Start.
  • Metrics monitoring timeframe: 3 months.
  • Final impact report: 15 days prior the Program Trial End.

Means

This proposal does not requires to come to life any budget or additional development.

Implementation Overview

We do not foresee any potential negative outcome of the present proposal and it is not expected for the DAO to derive any associated implementation action. The duration of the proposal will be of 3 months since it’s approval.

The only requirement for the DAO will be that the team currently in charge of Governance Facilitation takes responsibility for tracking the participation metrics of the delegates involved in this pilot program.

If after this 3-month pilot period, the DAO finds the outcomes favorable, a pilot incentive system could be designed to reward committed and aligned delegates who have contributed value and shown high levels of participation.