Should the DAO implement a mechanism to delegate VP to multiple wallets?

by 0x511a22cdd2c4ee8357bb02df2578037ffe8a4d8d (ginoct)

Linked Draft Proposal

Should the DAO implement a mechanism to delegate VP to multiple wallets?

Summary

This proposal is about implementing a multi-address voting power delegation mechanism in Polygon and Ethereum which will allow members to delegate their voting power to multiple delegates.

Abstract

This proposal suggests implementing a new smart contract for a multi-address voting power delegation mechanism in Polygon and Ethereum to enable members to delegate their voting power to multiple wallet addresses. The proposal aims to lower gas fees, increase transparency, and enable a more representative decision-making process. This will be achieved by creating a new multi-delegation contract, deploying it to Polygon, creating a new snapshot strategy, and updating the Governance dApp. The proposal will also contribute to the decentralized ecosystem by making it available to other DAOs.

Motivation

Currently, voting power delegation in our DAO is limited to delegating to a single wallet address. That means that if a wallet has 1000VP, it can only delegate the totality of that VP to another address. At the moment, the walkaround to delegate VP to multiple users is first to transfer your tokens to multiple wallets and then delegate VP from each one of those wallets. This, and the fact that delegation is only available in Ethereum Mainnet, increases the cost of delegation due to the need for multiple transactions (At least one for transferring tokens and another one to delegate).

Specification

This proposal has two main objectives:

• Create a new smart contract to delegate VP to multiple wallets, instead of a 1:1 delegation. The way this delegation will work is going to be using an even split, where the VP in a wallet will be delegated evenly between all the delegates the delegator wants to choose.
• Deploy this contract in Ethereum Mainnet and Polygon. The rationale behind this is to use an L2 network to lower the gas fees even more, but also to honor the existing delegations and to give users the choice of where they want to perform the delegation transaction.

Impacts

• Lower gas fees: Delegating to multiple addresses will require fewer transactions, leading to lower gas fees for members. Also deploying the smart contract in Polygon will lead to even lower fees than delegating in Mainnet.

• Increased transparency: Allowing members to delegate to multiple addresses will make it more transparent for anyone to see another user's different delegates.

• Improved voting power distribution: Allowing members to delegate to multiple addresses will enable a more distributed voting power, resulting in a more representative decision-making process.

-Contribution to the decentralized ecosystem: This will be available for any other DAO that wants to use it. Currently, the reference smart contract for 1:1 delegation has been built by Gnosis SAFE (Now SAFE DAO). With this contribution, we will be putting the Decentraland DAO as a reference in decentralized governance technologies.

Implementation Pathways

• Create a new multi-delegation contract that will enable a user to delegate to several addresses.
• Deploy multi-delegation contract to Polygon as it has lower transaction fees than Mainnet.
• Deploy new subgraph indexing events from the new multi-delegation contract. Tentatively it may be a hosted service in TheGraph, but as TheGraph is sunsetting the hosted services, we will need to use another indexer.
• Create a new snapshot strategy in snapshot-strategies repo. This strategy should read previous delegations from the already existing snapshot-subgraph, according to the space network configured, and from our new delegations subgraph in Polygon. This will enable us to keep supporting already set delegations, while at the same time enabling multi-delegation. VP will be evenly split between all delegated addresses. (E.g: If an address with 150VP delegates to three addresses, each address will receive 50VP)
• Update the Governance dApp Display all delegates based on the new subgraph on the profile Delegate user will use the new multi-delegation contract

Conclusion

The proposed solution to implement a multi-address voting power delegation mechanism in our DAO will address the limitations of the current delegation mechanism, resulting in a more efficient and transparent delegation process. By enabling members to delegate their voting power to multiple wallet addresses and in cheaper networks (Polygon), we can reduce gas fees, increase transparency, and enable a more representative decision-making process.

This proposal is summarized due to technical limitations. To view it complete and vote on it, visit the DCL DAO Governance dApp