On-chain Governance Reimagined

The Strudel protocol is taking a step towards community governance by partnering with deora.earth. Deora’s governance rollup solutions enable secure, on-chain execution without the need to pay gas for each vote.

Collecting votes on a rollup

Until now, governance parameters and contract upgrades have been in the hand of the multi-sig signers. A delay of 24h and 7 days respectively before governance actions go into effect has been the only safety for protocol users.

Starting this Friday, Strudel users will be able to lock their $TRDL token to receive voting power over future protocol changes. When locked, the tokens will be transferred into a dedicated layer-2 network producing governance outcomes for the protocol through voting. All decisions by the community will be fully transparent and executable without any involvement from the multi-sig signers in the future. This gives full autonomy to the Strudel community.

Governable protocol aspects:

  • Dev-fund share for all mint operations.

Current Governance Solutions

Mainnet Voting
Voting on the Ethereum Mainnet is secure and executable on-chain. Due to the recent DeFi projects and transaction volume, this ability comes at a very high voting cost with slow confirmation rates. Additionally, it is affected by flash loan attacks due to the pure nature of composability. Just recently a governance vote from MakerDAO was altered by an uncollateralized flash loan resulting in a $7 million MKR voting power.

Snapshot Voting
The optimistic voting workaround from Snapshot allows on-chain execution but with a catch. A third party, the Aragon Court, is still needed to resolve any disputes that have been opened during a timelock period before the governance decision is taking into effect.

The Road to Full Community Ownership

The downsides stated above are the main reasons for testing new innovative governance frameworks. The cooperation of deora and Strudel allows a new level of flexibility and complex feature sets. It is the first step towards a fully decentralized and community owned protocol that every DeFi protocol wants to achieve.

Release

Strudel is planning to release the governance tool this Friday, November 6th. A separate announcement with more information will follow then.

Join the Strudel discord and let’s chat about governance: https://discord.gg/fBuHJCs

Receive announcements on Telegram: https://t.me/STRUDEL_OFFICIAL

Read more:

📜 Have a look at the Strudel Manifesto.

Strudel Finance is the first and only one-way, trustless bridging protocol linking Bitcoin (BTC), Bitcoin Cash (BCH), and other centralized assets to DeFi.

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store