Suggestions for the Creation of Governance Support Working Group

Ideas
2

In preparation for the Governance Support Working Group, StableLab would like to share the status of the current Compound Governance landscape.

Voting Activities

Of the 53 total votes in the last 6 months, 42 (79%) were executed as a result of voting, 3 (6% were canceled, and 8 (15%) failed.

Failed Votes:

  1. Compound Growth Program 12-Month Term
  2. Compound V2 Deprecation Phase 11 (Apr. 12, 2024) (240) - Rerun Compound V2 Deprecation Phase 11 (Apr. 22, 2024) (243)
  3. OpenZeppelin Security Partnership - 2024 Q2 Compensation (232) - Rerun: OpenZeppelin Security Partnership - 2024 Q2 Compensation (237)
  4. V2 Deprecation (Phase 10) (Feb. 27, 2024) (222) - Rerun: V2 Deprecation (Phase 10 Part 1) (Mar. 11, 2024) (227) , V2 Deprecation (Phase 10 Part 2) (Mar. 18, 2024) (230)
  5. Ethereum V3 USDC and Polygon V3 USDC.e - Interest Rate Curve Recommendations (Dec. 21, 2023) (209) - Rerun: [Revote] Ethereum V3 USDC and Polygon V3 USDC.e - Interest Rate Curve Recommendations (Dec. 21, 2023) (211)
  6. Add wstETH as a Collateral on Ethereum Mainnet
  7. Compound V2 Deprecation (Phase 6) (Dec. 4, 2023) (208) - Rerun: Compound V2 Deprecation (Phase 6) (Dec. 24, 2023) (210)
  8. Comet Vulnerability Disclosure (Patched) - Bug Bounty Program Reward - Rerun: Comet Vulnerability Disclosure (Patched) - Bug Bounty Program Reward (203)

Quorum Situation

Quorum is currently set at 4% in favor (400,000 COMP) of the total supply (10,000,000 COMP). It appears that of the 8 recent quorum failures 6 (75%) resulted in passed reruns, indicating that quorum could be causing inefficiencies. While lowering the quorum would likely improve the passage rate of proposals that are operationally necessary or ultimately desirable, it would decrease the cost of a malicious governance attack and so should be carefully considered along with other options.

Working Group Compositions

  • There is a Compound Growth Program supporting AlphaGrowth following a 4 month trial that recently narrowly failed to pass a vote for 12-month renewal.
  • The Compound Grants Program was an endeavor to fund 27,000 COMP across 4 domains (Protocol Ideas & dApps, Dev Tooling, Multi-Chain Strategy, Security Tooling). This program failed to renew in July of 2023.

Delegate Landscape

Recently active top voters appear evenly distributed, with about 50k COMP voted by the top 10 or so delegates:

  • Wintermutegovernance.eth
  • gauntletgov.eth
  • InstaDApp
  • Calblockchain.eth
  • She256.eth
  • 0x070341aa5e…9b1a46b4961b
  • Michiganblockchain.eth
  • 0x590f636a0e…ef82fdb5d954
  • 0x7b3c54e17d…e2f50c4ecc33
  • Blockchaincolumbia.eth
  • TennisBowling

Other active voters in the 25k COMP region:

  • pgov.eth
  • Kyber Network

Around half of the votes are typically by voters that are voting less than 1 COMP.

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