TrueFi DAO is currently voting to change its Snapshot voting power strategy from the sum of balances of both TRU and stkTRU to delegated voting power.
According to the initiator of the proposal, Tyler Loewen, there is a current disparity between off-chain and on-chain voting. On one end, the protocol’s on-chain voting is safe from governance attacks because it employs a Compound-like governance system that uses its stkTRU contract tracking voting power. This ensures that only individuals with a stake in the system are allowed to vote.
On the flip side, TRU token holders, who may not have a stake in the system, are allowed to vote during off-chain governance involving Snapshot. He said:
A robust DAO governance mechanism is necessary for a decentralized protocol to be successful. The protocol’s course can be steered in various ways when no one party is in control. We must make certain that voting behavior is in line with the protocol’s long-term success to ensure it is guided along the proper path.
Tyler argues that changing the voting power to only stkTRU holders will not just increase the security of the ecosystem but also increase accountability and give more voice to those with a stake in the system. The proposal also introduces a secondary benefit in the form of delegation. Tyler said:
Governance is hard, and complexity rapidly grows as more people and property are added to the system. It can take a lot of time to stay on top of everything, and this can lead to voter exhaustion, apathy, and ill-informed decision-making. Delegation is a great way to combat this.
If passed, TrueFi DAO will replace the Snapshot voting strategy with new comp-like-votes parameters.
As of press time, all five wallets that voted on the proposal were in support of the idea. Voting will stay open until December 5.
Update: This proposal has been passed following 92.79% vote in support of the motion.