Collectively, UDT holders are members of the Unlock DAO. The Unlock DAO aims at governing the Unlock Protocol. In order to facilitate decision making, the Unlock DAO uses OpenZeppelin's Governor contracts which can be found at these addresses:
- Governor Contract (
0x440d9D4E66d39bb28FB58729Cb4D3ead2A595591): where proposals and votes are handled
- TimeLock Contract (
0x17eedfb0a6e6e06e95b3a1f928dc4024240bc76b): where proposals are executed and funds are managed.
We recommend the use of Tally's front-end application to delegate votes, submit proposals as well as vote on the proposals previously submitted.
The governor contract has been configured with the following initial characteristics:
- Anyone can submit a proposal (no ownership threshold)
- Voting length: 8 days
- Quorum: 12,500 votes
- Time lock duration: 7 days.
All of these settings can be changed by the Unlock DAO community through an onchain proposal.
As part of the launch of the DAO, Unlock Inc. has allocated the following to the Time Lock contract (which manages the funds of the DAO):
- 5,000 UDT available immediately (tx1, tx2)
- 95,000 UDT streamed over 1 year (sablier)
- 170.23 Uniswap Liquidity Provider tokens from the UDT/Eth pool (tx1, tx2)
- We have also subsequently transfered the remainder of the first community airdrop to the DAO.
As of April 2023, the Unlock DAO owns and manages about 92,450 of its own UDT tokens.
In June 2023, the Governor contract was upgraded from
0x440d9D4E66d39bb28FB58729Cb4D3ead2A595591 via a DAO proposal that the community approved and executed onchain. This upgrade is the result of a vulnerability in the OpenZeppelin library and the new Governor contract is now upgradable.
The DAO can execute any transaction as long as the transaction was approved by token holders. These transactions range from transfering some if its own tokens as grants, to upgrading the core protocol, or even changing its own governance parameters.
Making a proposal
A proposal is code that will be executed by the TimeLock smart contract if it has been approved. A proposal can then only include onchain actions, such as "transfer X to tokens to address A", or "upgrade contract to be using implementation X"... etc.
At this point, anyone can make a proposal by submitting it to the DAO contract. The Tally UI offers and easy way to make these proposals, but you are welcome to use any other relevant tool as well.
Once the proposal has been submitted, the delegates (see below) have 8 days to express their preferences, between voting in "favor", "against" or "abstain". Proposals have to be carefully tested by each delegate to assert what impact they will actually have, and if they are indeed desirable for the protocol. Given their unstoppable nature, and the fact that a rogue or buggy proposal could not be reverted, it is absolutely critical that every single vote is done thoughtfuly. Additionaly, some delegates might want to consult the token holders who have delegated to them before making a final decision.
Given how much scrutiny is expected by voters, we strongly advise anyone who intends to make a proposal to advertise it before submitting it in order to raise as much awareness as possible and give enough time to make a decision. This can happen on the Unlock forum website, on Discord, or any other place where community members and delegates are expected to be able to ask questions and get answers.
We expect the DAO to make frequent decisions. Voting onchain has a gas cost associated. In order to reduce the collective cost, the DAO has a delegation mechanism and only delegates are actually voting. Every token holder is invited to delegate their tokens. Token holders can delegate to themselves or to another address. If they delegate to themselves, they will then be expected to vote.
Delegation is done by address, which means that there is no need to delegate again when the balance of tokens of an address changes.
When a delegation was submitted, the "weight" of each address's vote is based on how many tokens have been delegated to them, at the time of the proposal submission.
Unlock Labs Delegation
Unlock Inc. has indicated that we will not use the company's owned tokens to vote on proposals for as long as we own a majority of the governance tokens. However, in order to facilitate governance, we have delegated some of the tokens we own to multiple entities, including some of our investors, some projects that we're partnering with, as well as other DAOs and communities that the Unlock Inc. team feel bring valuable diversity of opinion, culture and help promote adoption of the protocol.
As of April 2023, our delegates are the following:
- E2C Collective
- Cherry Ventures
If you or your team is interested in becoming a delegate, please reach out.
Even though offchain votes are non-binding, we suggest the use of Snapshot as a way to get a a "temperature check" from the community.
The Unlock contract has been deployed on multiple networks. In Q2 2023, we will introduce a mechanism for the DAO on Ethereum mainnet to control the Unlock contract deployed on each of these networks. Stay tuned.