In the spirit of the OctoFi manifesto, OctoFi is owned by its community, therefore, should be governed by the community. However, it's observed that in the recent votings the participation rate is low (none of the proposals had over 30K OCTO voted with 350K OCTO in circulation) and the proposal has not been well received and discussed before the voting took place.
Hence, I'm proposing to formalize the governance process as a guide for the community to follow so that inputs can be collected and meaningful discussions could take place before it's put up for voting. The below OIP lifecycle process takes references from the governance process of a few popular DeFi projects. Feel free to provide your inputs and suggestions.
The OctoFi governance process involves forum discussion and voting on proposals held on the OctoFi Snapshot. At this stage, only proposals posted by the core team (i.e. OctoFi founders and Octagon) are considered binding if passed with a quorum.
The steps for a successful governance proposal are:
- Creating a Request For Comments (RFC) on the Governance forum and receiving community input.
- If the RFC is non-contentious, then submitting an OctoFi Improvement Proposal (OIP).
- The OIP is voted by the OCTO holders and considered binding if successfully passed with a quorum
RFC is the first step in the governance process. Anyone can participate in the Governance forum via Den. When submitting an RFC on the governance forum, the post should cover all the information of the potentially final OIP. This will allow the community to absorb the proposal, provide feedback, improvements, and if rough consensus is reached. The core team will finalize and convert it into an OIP on the OctoFi Snapshot.
At a minimum, the RFC should include:
- Short and concise title of the RFC.
- A short and concise description of the proposal.
- The rationale for the RFC, e.g. why?
- The title of the forum post must include 'RFC:' with the short title. E.g. RFC: Formalizing the OctoFi Governance Process
- A community poll that community members can use to vote (optional)
Once posted on the governance forum, all questions and comments should be replied to and taken into consideration, to further improve the RFC.
If your proposal can gain enough traction and reach a rough consensus, the core team will create an OIP for voting on our snapshot voting platform, where the community will vote with OCTO token to decide the outcome. OCTO token is our voting metric, 1 OCTO represents 1 vote, currently, only OCTO token held in the wallet can be used for voting. For a vote to pass and becoming binding, it must gain a quorum of at least 50K OCTO (14% of the circulating supply).
Although an OIP is considered binding once successfully passed, considering the limited resources of the project at this stage the core team reserves the rights to determine the best timing for implementation.
