QuickSwap Governance Proposal: The Clarity Act

Over the past two years, QuickSwap has evolved from a single-chain decentralised exchange into a multi-chain ecosystem operating at the forefront of DeFi innovation. From the introduction of dynamic fee hooks and modular Algebra V4 pools to the implementation of deflationary tokenomics and expansion across multiple chains, the protocol has consistently demonstrated its ability to adapt and grow.

This progress has been driven by the community through active governance participation and a shared commitment to long-term success. However, as QuickSwap continues to scale, so too does the complexity of its operations, treasury management, and contributor ecosystem.

To support this next phase of growth, it is both timely and necessary to formalise and clarify the structures that underpin the protocol.
This proposal introduces a clarity framework designed to improve transparency, strengthen alignment, and clearly define how DAO ownership, Foundation responsibilities, and operational processes function today.

Why This Matters
As the protocol expands across chains, partnerships, and product offerings, informal governance structures begin to introduce inefficiencies and ambiguity. Establishing clearer frameworks ensures that QuickSwap remains scalable, accountable, and aligned with the community’s long-term vision.
Importantly, this proposal does not introduce disruptive change, but rather formalises and strengthens practices that already exist, allowing them to operate more effectively at scale.

Next Steps:

1. After reading the full blog post, please join the official QuickSwap Telegram discussion forum to share your feedback and cast your vote on Snapshot.

2. Governance discussions on the official QuickSwap Telegram community and voting on Snapshot will run concurrently until Monday, May 25, at 12:30 PM UTC.

TL;DR
This proposal introduces a vote to strengthen DAO Governance, Operational Efficiency, and Transparency across five core areas:
• Operational Cost Optimisation
• Contributor Focus & Conflict-of-Interest Policy
• Token Supply Reduction Framework
• Foundation Mandate & Role Definition
• Transparency & Reporting

A “Yes” vote will formalise and adopt this framework.
A “No” vote will maintain the current informal structure.

The Clarity Framework

1. Operational Cost Optimisation
As QuickSwap continues to grow, the efficient allocation of treasury/foundation resources becomes increasingly important.

Following approval of this Proposal, the Foundation will conduct an initial operational review and implement an ongoing evaluation process to improve efficiency, accountability, and resource allocation.

Periodically, we will:
• Review existing third-party vendor and contractor agreements
• Reduce or eliminate unnecessary external costs where appropriate
• Internalize core operational functions within the Foundation when this improves efficiency or accountability
• Establish periodic review of all contributor agreements based on cost, scope of work, and measurable output

2. Contributor Focus & Conflict-of-Interest Policy
This framework introduces a structure in which contributors are expected to prioritise QuickSwap relative to their level of involvement/compensation, while allowing flexibility through disclosure of external engagements where relevant.
The goal is to strengthen alignment, ensuring that contributors remain focused on delivering long-term value to the ecosystem.

Proposal:
• Core contributors are expected to prioritise QuickSwap as their primary operational focus relative to their compensation
• External protocol work may be permitted, but must be disclosed
• Material external engagements may require DAO awareness or governance approval
• Contributors remain subject to periodic performance and alignment reviews

Rationale: This framework ensures that contributors receiving DAO funding remain appropriately aligned with the success of the protocol relative to their contribution.

3. Token Supply Reduction Framework
It is important to ensure consistency and clarity in how DAO-held assets are represented. To that end, any legacy or “OLD QUICK” tokens currently held within the DAO treasury will be converted into the current QUICK token.

The DAO will instruct its multisig signers to convert any legacy OLD QUICK holdings into the current QUICK token and to transition these holdings to upgraded multisig infrastructure to enhance security and operational robustness going forward.

The framework introduces a structured mechanism through which token supply reduction may be implemented via governance. Any proposed token burn, staking, or other utilities will be subject to a formal DAO vote, ensuring that all such decisions are transparent and aligned with the long-term interests of the protocol.
Importantly, this mechanism is not intended to just enforce regular burns, but rather to provide the DAO with a flexible tool that can be used responsibly in response to evolving market conditions and protocol needs.
Under this framework:
A certain percentage of QUICK DAO-controlled token supply may be considered for usage/burns
The DAO retains full discretion over the usage of treasury held tokens
The DAO may consider formally ending the OLD QUICK conversion process through a future governance vote.

This approach introduces a structured method for improving token supply dynamics while preserving full DAO oversight and flexibility.

4. Foundation Mandate & Role Definition
The Foundation plays a key role in executing the day-to-day operations of the protocol. However, as QuickSwap matures, it becomes increasingly important to clearly define the distinction between governance and execution.
Under this framework, the Foundation operates as an execution layer responsible for implementing DAO-approved strategy, managing contributors, and supporting operational functions.
As part of this evolution, the operational structure will continue to align with active contributors and DAO-defined priorities, ensuring that execution remains efficient and responsive to the needs of the protocol.

Objective:
Clearly define the operational role of the Foundation within the DAO ecosystem.

Proposal:
• The Foundation manages day-to-day protocol operations
• Oversees operational contributors and infrastructure
• Executes initiatives approved through governance
• Major strategic decisions must be approved through governance processes

Rationale: Clear role definition helps ensure both operational efficiency and decentralized governance. The DAO provides strategic direction, while the Foundation executes operational responsibilities.
This framework serves to clarify operational structure and does not replace or invalidate prior governance decisions. All existing roles, responsibilities, integrations, and mandates remain in effect unless updated through future DAO votes.

5. Transparency & Reporting
Transparency is a critical component of effective decentralised governance. The community should have consistent visibility into how resources are being managed.
This framework introduces regular reporting covering treasury balances, revenue and expenditure, and key operational updates. These reports will enable more informed participation in governance and strengthen trust across the ecosystem.

Proposal:
The Foundation will publish regular transparency reports covering key operational and financial metrics, including:
• DAO treasury balances
• DAO revenue and expenses
• Operational updates and protocol priorities

Rationale: Transparency strengthens trust between the DAO, contributors, and the broader community and ensures governance decisions remain informed.

Conclusion
QuickSwap has reached a stage where clarity becomes increasingly important. This proposal does not change the direction of the protocol, but strengthens and formalises the structures that already support it.
By improving transparency, defining roles more clearly, and formalising processes, the DAO positions itself for continued, sustainable growth.

🐉 Make your voice heard, dragons.