Transition MuesliSwap into a DAO governed by MILK

Dear MuesliSwap Community,

We have been working hard over the past few months to come up with a future-proof roadmap that will benefit all stakeholders in the MuesliSwap ecosystem. Our commitment to MuesliSwap’s future and its complete decentralization remains unwavering. Today, we want to propose a natural step in the evolution of the MuesliSwap DEX: transitioning MuesliSwap into a fully Decentralized Autonomous Organization (DAO), a pioneering move to establish MuesliSwap as Cardano’s first real DAO and a leader in DEX innovation. We share our outline for the DAO transition below and appreciate feedback from all community holders before moving to an official vote.

The core idea: Transition to a DAO Governed by MILK
Our vision is to evolve MuesliSwap into a DAO where governance and decision-making rest with the community, especially MILK token holders. This shift is aimed at reinforcing our dedication to decentralization and empowering our community. By removing central control over MuesliSwap DEX components, we aim to secure the project’s sustainability, governed through the MILK token.

Ensuring Community Governance:

  • On-Chain Voting System: Introducing an on-chain voting mechanism that allows MILK token holders to directly influence protocol decisions in a decentralized manner, with corresponding adjustments made on-chain. This requires updating all relevant contracts for compatibility with decentralized on-chain voting solutions. We have already started extensive development into this area in the past months and have already made the initial design choices of an on-chain voting protocol available: GitHub - MuesliSwapTeam/muesliswap-onchain-governance: An on-chain governance protocol with enforceable voting results.

  • MILK Token as a Governance Instrument: Elevating MILK tokens as a vital governance tool, granting holders substantial influence over the platform’s direction.

  • Community Tenders: These initiatives encourage innovation and development focus, inviting contributions from everyone, including the MuesliSwap team. The Muesli team’s role will shift to being one of many contributors, emphasizing the collective decentralized responsibility in steering MuesliSwap’s direction. This change ensures the DAO’s effective fund management, talent acquisition, and swift, reliable protocol progress. Our team will continue to offer expertise and guidance without holding a controlling stake, fostering a collaborative environment where every community member, including us, has a voice.

Financial Transparency and Control:
Establishing a transparent, community-driven on-chain treasury for financial oversight. The treasury, controlled by MILK token holders, will manage all protocol revenues and transparently fund development and expenses. Moreover, additional revenue sources on the protocol level could be introduced by the DAO once the structure has been established.

Matchmaker Governance Model:
Licenses Managed by the Community: Proposing a system where matchmaker licenses are introduced and overseen by the DAO, improving our market-making ecosystem and liquidity. DAO governance will ensure equitable matchmaker management, generating additional revenue for the DAO.

Empowering Community-Led Development:
Open-Sourcing for Collaboration: Making interface and analytics endpoint components publicly accessible for collaborative development. The interface should be hosted on IPFS for transparency, with backend components being additionally operated by various community members, incentivized by the DAO.

This post is an invitation for open discussion. Please share your thoughts, concerns, and suggestions. Together, we can facilitate a transition that truly reflects our collective vision for MuesliSwap. We understand that this transition is a major step and want to ensure that it is executed with the highest regard for security, efficiency, and community involvement

10 Likes

I think decentralization is an amazing idea, it will ensure the continuity of the project for years!
Kudos to you for the thought!
MUESLISWAP DAO :milk_glass::trophy:

4 Likes

Amazing idea!!! This would be a really good step to say the least :slight_smile:

1 Like

Yes! Been waiting for ages.

I absolutely love this idea. I’m all for it. However did have a few questions:

  • Would the current Muesli Team remain primary support in the event of an errors, minor, or (fingers crossed never happens) major errors?
  • Will the Muesli Team still be responsible for updating, maintaining, and implementing new features?
  • What work would need to be conducted if this was to pass a vote?
6 Likes

If this were to pass, I’d be keen to see a treasury page added to the Muesli site so community members could easily track the treasury balance. This would have to include:

  • Current balance
  • Treasury income for the day/week/month/year/all time
  • Treasury expenses and outgoing transactions

Essentially clear and concise analytics surrounding the treasury

8 Likes

I generally like the idea and the proposal, however my main questions are regarding:

The Muesli team’s role will shift to being one of many contributors, emphasizing the collective decentralized responsibility in steering MuesliSwap’s direction.

  1. Who will remain responsible for the project then? Namely eg. support when something doesnt work or is broken.

  2. Also from the technical perspective - I guess muesli team will still manage devops and main development, right?

3 Likes

Dear developers, I propose to solve the issues one by one. We voted a year ago to make the milk token divisible. A year has passed, well, almost a year, but it has not been done. Please finish at least this. And then start dealing with other issues.
You have been promising a snow utility for a very long time, but it has also not been done.
Do at least that, and then you can think about some more global things.

5 Likes

Great that something new and with a long view into the future is being brought up.
It’s great. I think the next thing we should do is to do the token migration as now our market trend has been declining. Then we can have a fresh start with new divisible MILK tokens and it won’t hinder us at all. Also allowing price development, fee distribution to farmers, swappers etc. way better than indivisible MILK.

After that we could focus better on these already decided and/or these future governance decisions. Some planned timelines would be also great to increase the transparency of the development. It’s also easier to market for the community and Muesliverse-entusiasts.

Good questions Ben! I can also stand behind these.

1 Like

Snow has not been promised to have any utility, but I agree 100% with the MILK token divisibility.

I think the future of the SNOW could be good given for the MILK DAO governance.

It’s a great idea, but there are a few things to bear in mind. Do you have a dao that you want to transfer muesli to?

act faster! everything is too slow here!

Hi @Ben,

  • Would the current Muesli Team remain primary support in the event of an errors, minor, or (fingers crossed never happens) major errors?
  • Will the Muesli Team still be responsible for updating, maintaining, and implementing new features?

As outlined in the proposal, the MuesliSwap Team remains committed to the project. In order to develop the decentralization of the platform, we are further allowing third parties to enter and join forces on the development, while being legitimized through the DAO governance.

  • What work would need to be conducted if this was to pass a vote?

We are currently working on a fully on-chain decentralized DAO governance system that supports all features outlined in the proposal. The governance system is partially funded by Catalyst Fund 10 and MuesliSwap Team efforts (see for more details DAO Treasury & Protocol Parameter Management via On-Chain Governance - By MuesliSwap)

This protocal needs to be fully developed and audited. After the audit, a DAO will be set up through this platform. Further there will be the need to migrate the pools into a setup that supports being managed through the DAO (i.e. for controlling staking, pool fees and batching licenses). These are the main steps to execute for the DAO to take effect.

2 Likes

We are currently working on a fully on-chain decentralized DAO governance system that supports all features outlined in the proposal. The governance system is partially funded by Catalyst Fund 10 and MuesliSwap Team efforts (see for more details DAO Treasury & Protocol Parameter Management via On-Chain Governance - By MuesliSwap)

1 Like

Thanks for answering my questions Niels. Great answers and I’m looking forward to the future of Muesli :milk_glass:

1 Like