The Future of DeFi Built on Tezos
By: Molly Garofalo | December 18th, 2019
November 5th, 2019 was an exciting day here in Boston, especially for our very own CryptoLiveLeak team! Ken Garofalo, Tezos Boston Chapter President, held the tenth Tezos Boston Meetup. Tezos Community members shared in the glory of security tokens on Tezos. Among the presenters and panel members, our team got to know Jonas Lamis. Jonas, based out of Palo Alto, California is the founder of one of the top Tezos delegation services, Tezos Capital. Amongst the two delegation options offered, Legacy by Tezos Capital and Tezos Capital, Jonas’ bakery has nearly 2,000 delegators which ranks him within the top seven largest bakers.
Jonas has recognized Tezos as being a top chain in this booming technology industry and took inspiration from its attention to on-chain governance to found StakerDAO, the future of decentralized financial governance. The tezos amendment process is an intricate ecosystem involving bakers with formal voting rights, delegators who stake their tezos and therefore delegate their voting rights, and rolls which ultimately determine the proportional size of a baker’s voting power. The Tezos blockchain’s decentralized governance infrastructure, its facilitation of easy formal verification, secure smart contracts, and overall vision align with the StakerDAO mission.
The StakerDAO ecosystem involves key characters including the Staker agora, the Staker ops team, and the Staker council. The Staker governance is an evolution of the Tezos agora in combination with the GOV.1 token standard developed in collaboration with Serokell. The GOV.1 token standard will include an open source modicifation to FA1.2 token standard which will allow future projects to replicate this model to launch a security token with customizable governance framework. GOV.1 is expected to launch before the end of this month and the first cycle is expected set forth in January 2020.
The Staker agora is a monthly governance cycle in which proposals are presented, discussed, voted on and implemented. During the first phase, the Staker ops team pursues leads, some of which are derived from token holders, and develop proposals to be approved by the Staker council with the primary goal of maintaining the StakerDAO asset portfolio and launching new financial products. Potential proposals are discussed and considered amongst community members during the second phase. Once the proposal is submitted to the blockchain by the Staker ops team, the cycle enters its third phase in which the proposal is either approved or disapproved by the Staker council. The Staker council consists of five members, three of which are meticulously elected by the Staker agora and two of which are appointed from the Staker ops team. Each member is elected annually. The Staker council governs decisions regarding assets under management via the third phase of the governance cycle. The fourth and final phase is implementation overseen the Staker ops team.
Jonas sees vast opportunities to come from de-fi governance. Putting decisions in the hand of community members will be a catalyst for a vast variety of new, innovative projects for StakerDAO to manage and launch. The StakerDAO model allows token investors to essentially diversify holdings while reducing risk. While the exact profit model for token holders cannot be precisely predicted due to the not yet defined portfolio of StakerDAO, Jonas hopes to distribute profits by replicating MakerDAO’s deflationary model of buyback and burn.
To join the discussion and participate in the first ever StakeDAO governance cycle, visit https://www.reddit.com/r/Staker_Governance/