[Core] Approval of Payments to Unifi DAO Guardians

Allocation of Unifi DAO Guardian Rewards

Background

UNFI community governance unanimously approved the referendum authorizing the establishment of Unifi DAO Guardians. The passing of that referendum authorized Unifi Labs to create the Unifi Guardians DAO. As with all Unifi Labs’ projects, the Unifi Guardians DAO model is experimental and will be refined and modified as it evolves.

Unifi Guardians will be the first group to oversee and execute parameter changes to Unifi Protocol smart contracts. This is a needed contract security enhancement to allow the next phases of the DAO to be developed.

As outlined in the documentation describing the creation and initial availability of UNFI, the Liquidity Providers and Ecosystem Development fund (LPED) was established to provide funding for ecosystem development and governance. Additional information on the LPED as well as UNFI token allocations can be found in Binance Launchpool's research, as well as on Unifi's website.

Points of consideration

There will be 3 to 7 Guardians as the DAO starts, with the numbers being adjusted as the security is examined and consensus is tested. Guardians will be selected by the Unifi team and include trusted partners who are also invested in ensuring the safety of the Protocol.

Initially, a high level of interaction will be required by Guardians to facilitate testing and the launch of the DAO. It is estimated a total budget of 1000 UNFI per month will be enough to secure active Guardian participation in this process. These UNFI tokens will come from the designated and already established LPED, as referenced above. Most governance models provide some sort of reward to those who perform work in the furtherance of governance and Protocol security. Unifi has planned for this type of reward system since the Protocol’s creation.

Small scale experimentation as will be conducted with the Unifi Guardians DAO is needed to allow progression towards governance rewards for UNFI holders as the GGM matures.

Referendum Question

Should 1000 UNFI per month be allocated from the existing LPED fund to compensate Unifi DAO Guardians for their participation in Unifi Lab’s development process for the DAO?

Yes - Approve the token allocation for Guardian rewards

No - Do not approve the token allocation for Guardian rewards