Governance Participation Program
As Synthetix Ambassadors, we have made it our mandate (per SIP-157) to act on behalf of the interests of SNX holders in the broader DeFi ecosystem by participating in the governance of external protocols. Our governance participation comes in the form of proposal reviews, forum discussions, signal polling and, ultimately, token voting.
When it comes to formal decision making, many protocols resort to on-chain voting as a means of consensus. However, direct token voting does not always reflect the entire community’s opinion, and voting power can often end up concentrated among a handful of large holders and delegates.
In an attempt to mobilize dormant voting power held by smaller token holders who support the Synthetix Ambassadors’ governance philosophy, we are introducing a 32,000 $SNX incentive program in cooperation with the synthetixDAO that will retroactively reward wallets that delegate $UNI tokens to the ambassador multi-sig for the duration of a a 30 day epoch. A technical explanation of the Governance participation program can be found here and a recording of the SIP presentation is available here.
The ambition of this program is to help equip the ambassadorDAO with additional voting power needed to fulfil our mandate by encouraging indirect participation from smaller token holders who would have otherwise forewent their governance privileges. As Synthetix ambassadors, we will engage in public forum discussions and communicate our opinions through various means to further the interests of the community supporting us.
In light of the recent governance activity happening in the ecosystem, and in the spirit of future integrations, the Governance Participation Program will be a pilot project, the first of many iterations aimed at encouraging smaller token holders to overcome voter apathy and delegate their tokens to more active participants whose goals align with their own (the aDAO).
Individuals who have delegated their $UNI tokens to the Ambassadors as of September 13th, 04:00 UTC 2021, will be eligible to receive retroactive rewards based on their pro-rata share of total delegated votes. Delegators may delegate at any time after the start of the first epoch, however delegators who withdraw their delegation at any point before the epoch ends will NOT be eligible to receive any incentives.
$UNI holders may delegate through SynthetixEmbassy.io without their tokens ever leaving their wallet, making this an extremely low risk transaction. At any point, should the delegators feel they no longer wish to participate, they may withdraw their delegation through the same portal or simply transfer their tokens without incident.
Once community members have delegated their $UNI to the aDAO, they will immediately become eligible to accrue rewards. Delegators can track their share of delegation power through the aDAO portal, but the amount of rewards they’re accruing won’t be viewable in real time. Due to the fact that users can’t see any advertised reward data, we believe people will be deterred from purchasing UNI off the market with the sole purpose of delegating it for rewards, then selling it when the epoch ends. Our goal is to maintain sustainable governance practices and reduce voter apathy at the same time, and at no point will delegators be locked into the program or restricted in any way. Delegators remain in full custody and control of their tokens throughout the duration of the program and are under no obligations.
Thank you all for the continuous support, we look forward to what the future has in store!
Sincerely, Synthetix Ambassadors.
aDAO portal: https://synthetixembassy.io/
SIP 163 – Governance Participation Program: https://sips.synthetix.io/sips/sip-168
SIP presentation recording: https://anchor.fm/synthetix/episodes/SD024---SIP-168-e15gde1