Proposal: Should the DAO financially support DAO voting via Eidoo by subsidising voting/staking gas costs?
Summary: This proposal would introduce incentives for both staking and voting on DAO proposals using the Eidoo App. Specifically, the DAO would subsidise all on-chain transaction fees for those members staking and voting via Eidoo, fully absorbing those costs paid to the Ethereum blockchain.
Abstract: DAO staking and voting are essential components for any decentralised decision-making to happen. While network fees are currently subsidised for users of the Eidoo App who stake (partial subsidy) and vote (total subsidy) through it, this is a loss-making operation that the Eidoo project has decided to embark on with the purpose of growing its users-base. DAO incentives on staking and voting via the Eidoo App would guarantee a medium-term reduction of gas-related costs on the above mentioned pNetwork DAO transactions for users of the Eidoo App.
Introducing such a subsidy is aimed to increase active participation in the project without high gas prices becoming a burden for the users.
Motivation: An incentive for operating on the DAO via Eidoo would benefit the pNetwork community in terms of cancelled costs on the DAO members’ side when actively participating in decentralised decision-making and engaging with the pNetwork ecosystem. Its aim is to encourage active contributions to the success of the project, while funnelling a new audience towards one of the pNetwork ecosystem’s facilitators, the Eidoo App.
High gas fees on Ethereum are a well-known burden on the ecosystem that projects have sometimes decided to pay on behalf of their users to facilitate their onboarding to the DeFi ecosystem. A notable example, the Argent project has introduced gas costs reductions for their users to make crypto more accessible. However, they had to reconsider such an operation due to increasing Ethereum gas prices, which made the expenses for the campaign higher than its benefits.
Having the DAO taking over on the subsidizer role would avoid short-notice interruptions of such incentives and guarantee its continuous operation.
Specification: The DAO fund aims to grow the pNetwork ecosystem. A way to achieve this goal is to be inclusive of the community within the project’s strategy and to boost the adoption of the Eidoo App. This proposal proposes to direct part of these PNT funds towards subsidising network fees on all voting transactions whose goal is to determine the path forward for the project and how to contribute to the overall decentralized ecosystem.
The pNetwork governance system is structured as an Aragon-based DAO that is composed of a set of smart contracts, one of these specifically designed to enable voting. The voting smart contract is available on Etherscan for anyone to review. If approved, this proposal would have the DAO pay for the Ethereum gas cost of broadcasting voting transactions into the network. The cost of sending one voting transaction to the Ethereum network is currently approx. 160,000 in terms of gas.
Note that, if approved, the proposal would not exclude the possibility of future changes in the voting structure (examples: further code optimization, Ethereum L2 migration, future DAO proposals on this same topic). It does, however, give a medium-term guarantee of cost reduction on the DAO voters’ side when they engage with the pNetwork ecosystem.