An overview of the essential mechanisms and actions that empower community members to actively shape the future of a stablecoin protocol through its governance forum.
How to Participate in a Stablecoin Governance Forum
Core Governance Concepts
Forum Participation & Discourse
Governance forums are the primary discussion hubs where proposals are debated before on-chain voting. This open dialogue is crucial for building consensus and refining ideas.
- Feature: Users post topics, ask questions, and provide feedback on improvement proposals.
- Example: On MakerDAO's forum, users extensively debate parameter changes like Stability Fees before a formal vote.
- Why it matters: It allows all token holders, regardless of stake size, to contribute their expertise and influence the direction of the protocol in a transparent setting.
Proposal Lifecycle
The proposal lifecycle defines the structured journey of an idea from initial discussion to on-chain execution, ensuring thorough vetting.
- Feature: Stages typically include: Temperature Check, Consensus Check, Formal Submission, and On-chain Vote.
- Example: A proposal to add a new collateral type to Aave undergoes weeks of forum debate and signal voting before a final Snapshot or on-chain vote.
- Why it matters: This process reduces governance attacks and ensures only well-considered, community-backed changes are implemented, protecting the protocol's stability.
Voting Power & Delegation
Voting power is typically derived from the amount of governance tokens held or delegated, determining influence in decisions.
- Feature: Users can vote directly or delegate their voting power to trusted experts or representatives.
- Example: In Uniswap governance, UNI token holders delegate to delegates who vote on their behalf, similar to a representative democracy.
- Why it matters: Delegation enables engaged participation without requiring constant attention, while direct voting gives ultimate control to active, informed token holders.
Signal Voting (Temperature Checks)
Signal votes are informal, off-chain polls used within the forum to gauge community sentiment on an idea before drafting a formal proposal.
- Feature: Often conducted using tools like Snapshot, they require no gas fees and have lower participation thresholds.
- Example: A forum post might include a Snapshot poll asking, "Should we increase the DAO's grant funding budget?"
- Why it matters: It prevents wasted effort on proposals lacking support and provides critical early feedback, making the formal governance process more efficient and focused.
Governance Parameters
Governance parameters are the adjustable rules of the governance system itself, such as voting periods, quorums, and proposal thresholds.
- Feature: These rules define how proposals pass and protect against low-participation or malicious attacks.
- Example: A protocol might set a quorum of 5% of total supply and a voting period of 7 days for all major decisions.
- Why it matters: Properly tuned parameters balance efficiency with security, ensuring decisions are legitimate and the system can adapt over time through meta-governance proposals.
Role of the Core Team
The core team or developers often facilitate the forum, implement passed proposals, and provide technical analysis, but ultimate authority rests with token holders.
- Feature: They may post Request for Comments (RFCs), write technical specifications, and clarify implementation details.
- Example: The Lido team frequently publishes detailed analysis on forum proposals related to stETH parameters or treasury management.
- Why it matters: This separation of powers ensures the community drives strategic direction while leveraging the team's expertise for safe execution, promoting decentralized and informed decision-making.
The Forum Onboarding Process
A step-by-step guide to joining and actively participating in the governance discussions for the Stablecoin protocol.
Step 1: Acquire and Prepare Governance Tokens
Obtain the necessary tokens and set up your wallet to participate.
Detailed Instructions
To participate in governance, you must first acquire the official governance token (STBLGOV). This token grants you voting rights and forum access. You can purchase it on major decentralized exchanges like Uniswap V3 on the Ethereum mainnet.
- Sub-step 1: Purchase STBLGOV: Swap ETH for STBLGOV using the correct contract address:
0x89205A3A3b2A69De6Dbf7f01ED13B2108B2c43e7. Ensure you are on the correct network. - Sub-step 2: Verify Token Holdings: Check your wallet balance to confirm you hold at least 1,000 STBLGOV, the minimum required for proposal creation.
- Sub-step 3: Prepare for Gas Fees: Allocate sufficient ETH in your wallet (e.g., 0.05 ETH) to cover transaction fees for voting and forum interactions.
Tip: Use a hardware wallet for enhanced security when storing governance tokens long-term.
Step 2: Connect to the Governance Forum
Access the official forum platform and link your Web3 wallet.
Detailed Instructions
Navigate to the official Stablecoin Governance Forum hosted at https://forum.stablecoin.org. This platform is built on Discourse and integrated with Web3 for identity verification.
- Sub-step 1: Visit the Forum: Go to the URL and click the 'Connect Wallet' button in the top-right corner.
- Sub-step 2: Authorize Connection: Select your wallet provider (e.g., MetaMask, WalletConnect) and sign the authentication message to prove token ownership without spending gas.
- Sub-step 3: Set Up Profile: Complete your public forum profile by adding a username and verifying your STBLGOV holding address is displayed correctly. Your voting weight will be visible next to your posts.
Tip: Bookmark the forum URL and join the announcement channel on Discord to stay updated on new discussions.
Step 3: Engage in Discussion Phases
Learn the discussion lifecycle and contribute effectively to proposals.
Detailed Instructions
Governance follows a structured discussion lifecycle: Temperature Check, Consensus Check, and Formal Proposal. Each phase has a specific purpose and duration.
- Sub-step 1: Review Active Topics: Start in the 'Temperature Check' category. Read the Problem Statement and Proposed Solution of active threads.
- Sub-step 2: Post Constructive Feedback: Use the forum's reply function to provide detailed feedback. For technical suggestions, include code snippets. For example, a parameter change might look like:
code// Proposal: Adjust stability fee StabilityModule.adjustFee(newFeeBPS: 150); // Changing from 100 BPS
- Sub-step 3: Signal Support: Use the forum's poll feature to vote 'Agree', 'Disagree', or 'Abstain' on ideas during the Consensus Check phase.
Tip: Focus on providing data-driven arguments and reference previous successful proposals (e.g., Proposal SCP-12) to strengthen your point.
Step 4: Create and Submit a Formal Proposal
Draft a complete governance proposal and submit it for an on-chain vote.
Detailed Instructions
Once a forum discussion reaches consensus, you can draft a formal governance proposal. This is a structured document that will be executed on-chain if passed.
- Sub-step 1: Use the Proposal Template: Copy the template from the 'Proposal Drafts' section. It requires sections like Motivation, Specification, and Risk Analysis.
- Sub-step 2: Include Executable Code: For technical changes, your specification must include the exact calldata for the transaction. Example for a treasury transfer:
codeTarget: 0xTreasuryVault Value: 500,000 USDS Calldata: transfer(address to, uint256 amount) Data: 0x0x1234...abc, 500000000000000000000000
- Sub-step 3: Initiate On-Chain Vote: Submit your final draft using the
Governor.submitProposal()function from the governance portal, which requires a 0.5 ETH deposit. The voting will last 7 days.
Tip: Have your proposal reviewed by at least two other delegates in the forum before submission to catch errors and build support.
Major Stablecoin Governance Forums
How to Participate in a Stablecoin Governance Forum
| Forum Name | Primary Platform | Participation Requirement | Proposal Process | Voting Mechanism |
|---|---|---|---|---|
MakerDAO Governance Forum | forum.makerdao.com | Hold MKR token | Forum discussion, then on-chain vote | MKR token-weighted voting |
Aave Governance Forum | governance.aave.com | Hold AAVE or stkAAVE | Temperature Check, then Consensus Check, then on-chain | AAVE token-weighted voting |
Compound Governance | Hold COMP token | Forum discussion, then on-chain proposal | COMP token-weighted voting | |
Frax Finance Forum | gov.frax.finance | Hold veFXS token | Forum discussion, then Snapshot, then on-chain | veFXS time-lock weighted voting |
Liquity Frontend & LQTY | liquity.org/blog | Hold LQTY token | Community discussion, then Liquity Improvement Proposal (LIP) | LQTY token-weighted voting |
DAI Savings Rate (DSR) Forum | forum.makerdao.com/c/dsr | Hold DAI in DSR | Forum discussion integrated with MakerDAO process | MKR token-weighted voting (via MakerDAO) |
Participant Perspectives and Strategies
Getting Started
Stablecoin governance is the process by which a decentralized community makes decisions about a stablecoin's parameters, such as collateral types, interest rates, and fee structures. As a beginner, your primary goal is to learn, observe, and start contributing thoughtfully.
Key Points
- Lurking and Learning: Before posting, spend significant time reading forum archives, governance proposals, and discussion threads on platforms like the MakerDAO forum to understand the community culture and key debates.
- Understanding the Stake: Recognize that governance often involves voting with tokens. For example, holding MKR grants voting power in MakerDAO. Start by understanding how proposals affect the stability of the underlying asset, like DAI.
- Initial Contributions: Begin by asking clarifying questions or providing non-technical feedback on proposal summaries. This helps you build reputation without needing deep technical expertise.
Example
When participating in a Compound Governance forum, you would first explore past proposals to see how changes to interest rate models or supported assets are debated. Your first post might be a question about how a proposed new collateral asset could impact the safety of the protocol.
Navigating the Proposal Lifecycle
A step-by-step guide for effectively participating in and influencing a stablecoin protocol's governance forum.
Step 1: Research and Forum Engagement
Lay the groundwork by understanding the governance process and community sentiment.
Detailed Instructions
Before drafting a proposal, you must conduct thorough research on the forum. This involves understanding the protocol's governance framework, active discussions, and historical proposals.
- Sub-step 1: Review Governance Documentation: Locate and read the official governance documentation, often found in the project's GitHub repository or documentation hub. Identify key parameters like proposal thresholds, voting periods, and the smart contract addresses for the governance token and governor.
- Sub-step 2: Analyze Past Proposals: Browse the governance forum's history. Look for successful proposals, failed ones, and the community's reasoning. This helps you gauge acceptable proposal formats and community priorities.
- Sub-step 3: Participate in Discussions: Engage in existing threads. Ask clarifying questions and provide constructive feedback. Building a reputation as a thoughtful participant increases the credibility of your future proposal.
Tip: Bookmark the forum URL (e.g.,
https://forum.exampleprotocol.xyz) and the relevant Snapshot space (e.g.,snapshot.org/#/exampledao.eth) for easy access.
Step 2: Draft and Socialize the Proposal
Create a structured proposal draft and gather community feedback before formal submission.
Detailed Instructions
This step focuses on creating a clear, actionable proposal and socializing the idea to build consensus and identify potential issues early.
- Sub-step 1: Use the Template: Most forums have a standard proposal template. Adhere to it strictly. It typically includes sections for Title, Abstract, Motivation, Specification, and Voting Options.
- Sub-step 2: Write the Specification: This is the most technical part. Be explicit. If your proposal involves a parameter change, state the current value and the proposed new value. For example: "Change the
stabilityFeein theVaultEnginecontract from4%(400000000124368065) to3.5%(350000000109322057)." - Sub-step 3: Post a Draft Thread: Create a new thread in the forum's "Ideas" or "Proposals" category with a title like "[DRAFT] Proposal: Reduce Stability Fee to 3.5%". Clearly mark it as a draft and invite feedback for a specified period (e.g., 5-7 days).
Tip: Use code blocks to present smart contract function calls or configuration snippets cleanly, making it easier for developers to review.
Step 3: Formal Submission and Snapshot Signaling
Finalize the proposal and create an official Snapshot vote to gauge broad community sentiment.
Detailed Instructions
After incorporating feedback, you will submit the formal proposal and create a non-binding Snapshot vote. This tests support before an on-chain transaction.
- Sub-step 1: Finalize the Proposal: Update your forum draft based on the feedback. Change the title from "[DRAFT]" to "[PROPOSAL]". Ensure all links, code snippets, and values are correct.
- Sub-step 2: Create a Snapshot Vote: Connect your wallet (e.g., MetaMask) to Snapshot. Navigate to your DAO's space. Click "New proposal." Fill in the details, linking to your finalized forum post. Set the voting options (e.g.,
For,Against,Abstain), voting period (e.g., 5 days), and the snapshot block number (a recent block before the vote starts to determine token balances). - Sub-step 3: Promote the Vote: Announce the live Snapshot vote on the forum, social media, and community chats. The Snapshot vote result is a critical temperature check that informs whether to proceed to an on-chain vote.
Tip: The Snapshot proposal ID and link (e.g.,
https://snapshot.org/#/exampledao.eth/proposal/0x123...) must be added to the main forum post for transparency.
Step 4: On-Chain Proposal and Execution
For proposals requiring on-chain changes, a delegate or the proposer must submit and execute the transaction.
Detailed Instructions
If the Snapshot vote is favorable, the proposal must be submitted to the on-chain governance contract. This step requires holding or being delegated the minimum proposal threshold of governance tokens.
- Sub-step 1: Prepare Calldata: Encode the function call for the proposed change. For example, to call
setStabilityFee(uint256)on theVaultEnginecontract at0x742d35Cc6634C0532925a3b844Bc9e..., you would generate the calldata.
code// Example using ethers.js const iface = new ethers.utils.Interface(engineABI); const calldata = iface.encodeFunctionData('setStabilityFee', ['350000000109322057']);
- Sub-step 2: Submit the On-Chain Proposal: Interact with the Governor contract's
proposefunction. You will need the target contract addresses, values (usually 0), the calldata array, and a description hash (often the IPFS hash of your proposal). This action locks your proposal tokens for the duration of the vote. - Sub-step 3: Monitor and Execute: After the voting and timelock delay periods pass, anyone can call the
executefunction on the Governor contract to enact the proposal. Monitor transaction status on a block explorer like Etherscan.
Tip: Gas costs for
proposeandexecutecan be high. Some protocols have grant programs to reimburse successful proposers.
Governance Forum FAQ
Further Reading and Tools
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