Summary
This thread is to provide an overview of delegation and discuss our views on delegation at Jet Protocol.
Time is scarce, and it is unlikely that individuals will be able to participate in each governance system. Delegation helps solve that issue.
Delegation allows unused voting power to be employed in the day-to-day management of protocols. Especially when each vote matters, it is essential to provide a system where voting power can be delegated to trusted individuals so the everyday user of a protocol can not worry about these issues.
Delegates are essential participants of a decentralized ecosystem, and it is a tool that we should introduce to Jet Protocol.
Brief Introduction to delegation
Delegation allows a token holder to delegate the voting power of their tokens (not the actual tokens) to another individual who has signed up to be a delegate.
There is a low participation rate of voters, so naturally, delegates became a more sustainable role for protocols, as so much voting power went unused. Instead, individuals can delegate their voting rights to trusted individuals who should act in their interest.
Individuals also can revoke their delegation and re-delegate or even run as delegates themselves.
Delegation in Web3
Delegates are currently being used in a variety of protocols such as MakerDAO, ENS, and Gitcoin, etc.
Each delegate program works uniquely, but we can learn from these protocols to identify how we envision Jet Protocol’s delegation program.
- Delegate commitments
An application process similar to Balancer or Optimism. This is a great way to gauge the interest of individuals who want to be delegates at Jet Protocol.
Here is an example of what it could look like.
- Name
- Address or ENS
- I have read and understood the delegate process
- I understand that becoming a delegate requires a significant commitment
- My Vision for Jet Protocol
- My reasons for wanting to become a delegate
- My Web3 Interests
- Languages I speak and write
- My skills and areas of expertise
- Other Web3 projects I am involved in
This is an example, and the Jet community should have a discussion for details regarding the delegate application.
- Simple workflow
Both MakerDAO and Element Finance have a simple workflow for individuals to delegate their voting power. Currently, this is not a common practice, with some protocols using Snapshot as their main delegation website.
I suggest that Jet Protocol opt for a delegation page similar to MakerDAO. Since Element Finance uses CommonWealth, it is harder to replicate that.
Using a page similar to MakerDAO allows Jet protocol to provide an overview of the delegates, aims, and voting power. In contrast, other protocols lack this web page. This creates obstacles for an individual, as they need to look through the forum to find out about delegates their objectives, making it a more fragmented process.
- Compensation
Initially, delegates won’t need to be paid whilst working at a young protocol, since generally there is a lack of activity. However, in the long term, the role of a delegate will become more active, having to participate in forums, community calls, and voting, which in itself can become a part-time/full-time role. We should consider providing some form of compensation for delegates.
We believe that one common failure of delegation is the failure of compensation as it does not encourage fair retention of delegates. MakerDAO is the only protocol that actively compensates delegates, with a few other protocols working on their compensation program.
Delegation can’t be a volunteer role in the long term, and we encourage Jet Protocol to explore this further.