Author: marls88☀
[REDACTED] is focused on acquiring governance tokens so let’s jump in and talk about voting and how DAOs are governed. It’s like that civics class your parents took, but more fun and with a lot of money at stake.
Token holders of CRV, FXS, TOKE, etc. are not only voting on protocol improvements (made famous by BIP “Bitcoin Improvement Proposal”), but also on gauges, which are how protocols distribute their token for rewarding actions that are beneficial to the DAO such as providing liquidity. For example you can see in the Curve Gauge below MIM has been able to win the largest allocation of rewards. Once you’ve finished here be sure to check out The Curve Wars [link to [REDACTED] Curve Wars article].
Curve Gauge: https://dao.curve.fi/
https://lh5.googleusercontent.com/Veb1wd_mMZuRRi8EseY5hqbPyvPAZY-glBNszodJJH-MRKjMnSYECw_-qcoORPmhy181KxFA1PbTOVwd_jLPKfFrovPvXjXjOLN3ikHzOe3s2giAeq1KdHl1rgQbldoWmMlL9zPc
Frax Gauge: https://app.frax.finance/gauge
https://lh6.googleusercontent.com/FWPPDJYFLltGYt9MW8_4U8xXj82y3votSL6BSg9oTzSoPRcALgY0GoqxKcKmburoXG3Qh3IjWkZmyDXk6ARA1UATaIbJvFdy4cG5uG7laO6vECJLgnQ8UCuGlouR1v-wWndL77BX
Tokemak:https://www.tokemak.xyz/
https://lh3.googleusercontent.com/JrwfPfMVDzqX2mZeMdyxoDhgEaiMTpBGIFwyih4ziYFalxWff_AbjXWGrtNv9Xtv5AptCaG3RQeKEmTKdTcI8tJHVpzOuiBZrYPvd_nrqHYbMwatxOqeV9yYYzEpcVFbps-LtD2V
These votes are valuable beyond just the immediate economic value of emissions. For example MIM and FRAX are vying for DeFi dominance - the protocol with the deepest liquidity will have an advantage so a common strategy is to “bribe” voters with more than just the emission to swing a gauge or vote their way.
Tokemak deserves its own article, but needless to say TOKE votes are valuable, as evidenced by Votemak.
If [REDACTED] is successful in acquiring these governance tokens we’ll have a large amount of power in the ecosystem. For example we could vote for FRAX and swing the balance from MIM to FRAX. What’s the best way for us to govern these votes (I know, very meta)?