First Governance Vote

The Verdict & Explanation

We took a risk when starting to consult the community on some of the decisions we have to make. Not many do this because governance is tricky. Nevertheless, we do not want to compromise our ambition to become a community project thus we will continue openly discussing with the community when making decisions.

We’re grateful to have such a voting turnout and also are touched that so many of you actually care. Let us present how we think about our current governance by Discord and who will actually be refunded.

Explaining how we govern

The governance is not yet set in stone. We have been inspired by the Synthetix community who managed to successfully navigate community decisions via Discord. As we have stated before, it is composed the governance is composed of two main parts:

1. VOTE/SURVEY: We'd like the community to voice their opinions and quantify them

2. ARGUMENTS: We'd like to see the reasoning behind their vote.

The result of the vote/survey is an indication of community sentiment (obviously, it can be gamed in Discord). The second part of the governance - the arguments - are very important to us because they show more effort, explain the reasoning and show knowledge of the problem.

The final decision is a combination of both. Sometimes, popular survey can lose, if the argument part leaning to a different side is stronger. In general, think of this process as non-binding advice from the community. We want to consult the community and are always listening!

Who are we going to refund?

How to refund the LBP gas fees?

🎂 Refund gas for every buy transaction for everybody

🍩 Refund buy transactions gas for current hodlers and Hydraheads including whose all buy transaction failed

🍪 Refund buy transactions gas only for current hodlers

After carefully reviewing the arguments and the actual survey we have come to the conclusion that 🍩 (doughnut - REFUNDING NON-SELLERS) is the way to go.

There are 5486 eligible addresses to claim HDX, from that extra 221 buyers whose all buy transactions failed. 

 221 new (x)HDX holders

~301 ETH refunded 

~6 588 129 HDX (based on the ~average ETH price during the LBP)

Remaining ~56 873 469 HDX going to the treasury.

Why?

We have spent quite a lot of time mulling over this and even made an effort and tried a quantitative approach to weighing arguments (as seen below).

In conclusion: the strongest arguments were weighing by far toward 🍩 (doughnut). Even though the popular vote strongly favored 🍪 (cookie), we realized that those voted for it will not be hurt by the refunding non-sellers. As sik summarized:

And we really like dgold’s take on it:

We believe that 🍩 (doughnut - REFUNDING NON-SELLERS) is the optimal way to go because it demonstrates that tx fee should not be pricing out smaller contributors. This to some extent undermines the premise of permissionless finance. 

On the future of HydraDX governance

Governance is hard. Actually, it is a science. We believe that most people understand this, and also understand the perils of popular vote. There is a reason why there are so many smart people out there researching quadratic voting etc.

We do not want to make it too difficult on ourselves but we feel that we must consult the community on certain issues. We do hope that people who will not get their way will not be buthurt and sour after each vote. At the end of the day that’s why we form a community:

To make compromises, to rely on each other because it is not always us who know the best. Let’s be respectful. Even in disagreements. 

There comes a time when HydraDX governance will become fully on-chain. We hope that by then we become a well functioning and mature community that will handle the on-chain transition. Until then we have to learn from each other. 

We’re looking forward to that journey with you Hydraheads.

Onwards and upwards!