- Threshold flexes its muscles in an attempt to acquire wBTC.
- GnosisDAO is not a fan of censorable DAI.
- SafeDAO targets $2.5 million revenue stream.
After a quiet summer, governance activities on DAOs have started to pick up pace.
DAOs, or decentralized autonomous organizations, are digital collectives that administer crypto projects.
These digital communities collectively control more than $22 billion in Treasury funds spread across 2,400 crypto projects.
Delegates hold the power over DAOs to recommend and vote on governance proposals that can have far-reaching consequences not only for their respective projects, but for DeFi as a whole.
DL News has gathered the main DAO movements of the last 24 hours.
Save wBTC
Threshold Network wants to save wBTC, a form of Bitcoin issued by BitGo that can be used on DeFi applications on Ethereum.
Threshold is a competitor to BitGo and is creating its own variant of Bitcoin on Ethereum, tBTC, but its $200 million market size pales in comparison to wBTC’s $9 billion.
So why does a small fish harbor the intention of taking over its huge competitor?
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That’s because BitGo controversially plans to transfer ownership of wBTC to a joint venture that includes Tron founder Justin Sun, raising centralization concerns among major DeFi protocols that offer exposure to the popular token.
The Threshold DAO is now considering a proposal from one of its delegates to dilute its own supply by 15% to fund a $36.4 million acquisition of BitGo’s wBTC.
If approved, Threshold will approach BitGo with a merger offer between their respective Ethereum-based Bitcoin tokens.
Abandon DAI
BitGo isn’t the only company making waves in the DeFi sector.
MakerDAO’s rebranding to Sky sparks backlash from DeFi communities.
GnosisDAO, which controls the Ethereum sidechain Gnosis Chain, is rethinking its use of xDAI as a gas token ― the token used to pay transaction fees on the blockchain.
XDAI is a form of DAI, the dollar-pegged stablecoin issued by MakerDAO.
As part of its rebranding to Sky, MakerDAO has created a new version of its stablecoin called USDS.
The rebranding wasn’t just a name change: The USDS smart contract includes code that allows Sky to freeze the token and impose geofencing restrictions, features not present in DAI.
For some GnosisDAO delegates, this goes against Gnosis’ ethos of decentralization.
GnosisDAO may opt for other more decentralized alternatives, including LUSD and RAI.
Some delegates are pushing for the project’s native token, GNO, to become the gas token on the blockchain, as is the norm in DeFi.
Revenue stream of $2.5 million
Safe Protocol is a DeFi custodian that safeguards over $100 billion in crypto funds.
Its DAO, SafeDAO, is considering a plan to monetize its smart account platform.
DAO delegates debate a proposal to establish specific revenue streams to fund the Safe Ecosystem Foundation’s activities.
The first proposed revenue stream involves licensing fees for third-party applications that integrate the project’s Safe Wallet.
The proposal estimates annualized revenue from the licensing fee regime at $2.5 million.
Osato Avan-Nomayo is our DeFi correspondent based in Nigeria. He covers DeFi and technology. To share tips or information on articles, please contact him at osato@dlnews.com.
