[DAO Phase I] Approval of Unifi Guardians DAO

Start of Unifi’s DAO system

Background

Unifi Protocol's governance took its first step towards a DAO Global Governance Model (GGM) with the launch of the UNFI governance token in November of 2020. UNFI premiered on Binance after being selected as Binance Launchpool’s 8th project. As reported by Binance in June of 2021, UNFI was among the top 5 performing Binance Launchpool projects.

Unifi Protocol was created by an experienced team in the blockchain industry who came together with an intent to create a new type of Organization within the DeFi landscape. Revolutionary concepts such as a 100% backed and redeemable liquidity provider rewards token, creating a multi-chain protocol, and community governance not tied to one blockchain were unheard of at the time. Almost a year later, other projects in the blockchain industry are starting to copy these ideas. Unifi currently operates DeFi or staking services on 8 blockchains and has multiple platforms available for use.

Many other well known governance tokens only offer limited DAO style functions. They limit their governance token holders to voting on contract parameters or other items that are 100% on chain. UNFI holders have already voted on a wide variety of topics including blockchain node operations and staking, major acquisitions, UNFI staking rewards, and a wide variety of other tokenomics and ecosystem development issues.

Unifi Protocol was created to become a DAO. In order to do so, incremental steps will be needed. Unifi Protocol has identified several steps to be used as general guides in the evolution of the DAO. The below list does not include all required steps, and order of the steps will be determined as the UNFI GGM continues to evolve. It is also possible more than one step may be accomplished simultaneously.

• First version of DAO is deployed to enhance contract security
• Control of select contracts turned over to the DAO
• Community input on GGM evolution and further refinement
• Upgrade to Referendums system for governance actions outside of smart contracts
• Larger numbers of DAO participants
• Smart contract parameters changes include a time lock
• UNFI holders gain control of specified smart contract parameters (can be via proxy)
• UNFI holders vote to gain control over additional parameters

Points of consideration

Unifi Labs has been researching DAO security to ensure the smoothest transition possible into DAO smart contract control. This referendum authorizes the creation of the Unifi Guardians DAO, as recommended by Unifi Labs. As with all Unifi Labs’ projects, this DAO model is experimental and may be refined, modified, or otherwise changed as needed.

Unifi Guardians will be the first group to oversee and execute parameter changes to the Unifi Protocol’s smart contracts. These contract security enhancements must be completed in order to allow the next phases to move forward.

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.

Once this creation is authorized, there will be an additional referendum to cede control of specific contracts to the DAO.

This is a large step forward in the journey towards UNFI DAO GGM community governance.

Referendum Question

Should Unifi Protocol create the Unifi Guardians DAO as recommended by Unifi Labs?

Yes - Take this step towards UNFI community governance

No - Do not take this step towards UNFI community governance