GIP-5: Remove Gnosis Impact from the GnosisDAO Governance Process
- Let’s remove Gnosis Impact!
- Let’s make Gnosis Impact optional!
- Make no change!
GIP: 5 title: Remove Gnosis Impact from the GnosisDAO Governance Process author: Anna George status: Phase 3 type: Meta created: 2021-02-10
Gnosis Impact is currently an integral component of the Gnosis governance process. The current implementation of Gnosis Impact has known flaws and poses uncalled-for obstacles to pass proposals through the governance process. I therefore propose to exclude the obligatory utilization of Gnosis Impact as part of the GnosisDAO’s governance process phase 3 until a proposal passes amending its shortcomings.
The GnosisDAO governance process currently consists of three phases:
- Informal discussion on Gnosis Forum regarding potential proposal
- Creation of a GIP in the Gnosis Forum, including a Forum poll
- Creation of proposal on Snapshot + creation of two prediction markets on Omen, with one market collateralized in GNO and the other collateralized in a stablecoin + setting up the Gnosis Impact plugin.
(More details here)
As described above, phase 3 of the GnosisDAO Governance process is complex and cost intensive, making it less attractive and accessible for individuals to move their proposal forward to the final and essential governance stage that will decide on the implementation of a proposal.
Other than the complexity of setting up Gnosis Impact, the tool itself currently has a few inherent flaws:
- Due to Omen’s Fixed Product Market Maker (FPMM), all funds provided to set up the prediction markets are lost: once it becomes clear how the vote will turn out traders will buy all the winning tokens. This is making any proposal very cost intensive.
- As setting up Gnosis Impact is very capital intensive, it is not worthwhile to process any proposal that involves less than $100k. (More details here)
- Price impacts projected by Gnosis Impact are not very accurate as a) the market prices for the outcome tokens can only be found as long as it is still open which decision will be made on Snapshot and b) because potential profit opportunities are debilitated by Omen fees and gas fees. (More details here)
Only two proposals have so far been processed through phase 3 since GnosisDAO went live in November of last year, underlining the complexity of passing proposals through the final stage. Removing Gnosis Impact as a mandatory step will make GnosisDAO’s governance process simpler and economically viable and will allow more individuals to push their proposal to the final stage of governance.