Cross chain governance for Bao

Background:

Bao started on the ETH main net and our governance process is only located there, since then bridges between other chains have been established and Bao is still expanding to more chains. Currently, Bao contributors on the ETH main net hold all the governance power.
When we migrated over to xDai we had no clear path how to include cross chain voting.
In the last few months, we did discover that the xDai STAKE team had found a way to support cross chain voting. We are very thankful we could reuse xDai STAKE their setup !

Due to this we started a pilot, and we now have the possibility to incorporate other chains in the Bao governance process.

Proposal:

We took a look at the requirements for cross chain voting, and we have developed a pilot that contains:

  • A subgraph per chain to calculate the voting power (currently only xDai).
  • A snapshot strategy based on the subgraphs.

The subgraph for xDai can be tested here:
https://thegraph.com/legacy-explorer/subgraph/fabiaz84/baocxvoting?query=OwnBalance

Replace the address with your own to see what your voting power (which is based on your Bao holdings) would be for the following options:

  • Bao holders on xDai
  • Baocx holders on xDai
  • tBao holders on xDai
  • Locked Baocx on xDai

If you have a minus amount don’t worry this will be considered as 0.

The above subgraph was created for multiple tokens located on xDai. This was done because although the 1:1 contract was already functional it was not funded, additionally the Bao:Baocx peg was not 1:1. This changed recently, which means we don’t need the 4 options initially designed, because one can swap freely from Bao <> Baocx <> tBao.

Based on the above we propose the following setup for cross chain voting power, see the options below:

  • Locked Baocx on xDai
    • Equal to Locked Bao on ETH with a 33% value.
    • Locked Baocx * 33% = voting power
  • tBao holders on xDai
    • This needs to be converted to equivalent of Bao based on the tBao/Baocx ratio and based on that accounts for a 33% value.
    • (tBao * ratio) * 33% = voting power
  • LP holders of Bao/WBNB on BSC
    • Following the ETH calculation for the LP contribution but instead of a 300% weighting, it will account for a 25% value
    • (Bao LP Share / User LP Share) * 25% = voting power
  • LP holders of Bao/ETH on Polygon
    • Following the ETH calculation for the LP contribution but instead of a 300% weighting, it will account for a 25% value
    • (Bao LP Share / User LP Share) * 25% = voting power

We excluded normal Bao holders from other chains, we keep this exclusive to the ETH main net. On the other chains we feel that one should put their Bao to work to be considered a contributor to the Bao universe.

Expectation from the community:

  • Discussion on the proposed tokens for voting.
  • Discussion on the vote weightings.

Purpose:

To grant all contributors to the Bao universe a voice in our governance process

Additional information:
The xDai readouts are ready to be deployed, so we can do a staged release of strategies.

Meaning no matter the outcome of this discussion we will incorporate xDai governance which will match the ETH main net Bao governance calculations and will include only:

  • Bao holders on xDai
  • Baocx holders on xDai
  • Locked Baocx on xDai

This time we are trying to keep up instead of falling behind, we are looking forward to your input.

Limitations:
The BSC and Polygon LP’s we still have to develop, if we run into any issues or discrepancies we won’t implement them.

Also and correct us if we are wrong we can only use 5 strategies at a time.

7 Likes

Appreciate your work on this fabiaz! No qualms here!

Just tried the above link, seems that It’s not loading up on my side…

Fabiaz walked me through this the other day, I feel the weights are appropriate as this will increase the number of “whales” holding large balances on the sidechains. Looking forward to seeing the distribution of governance token holders after this measure is approved.

1 Like

I access the link on a mobile and no clue where to paste my wallet address. A screenshot would be great. Will try it on the desktop.

Otherwise support the proposal

Replace every address with your own, and I think mobile doesn’t work as well.