Delegates for Jet Protocol

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.

  1. 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.

  1. Name
  2. Address or ENS
  3. I have read and understood the delegate process
  4. I understand that becoming a delegate requires a significant commitment
  5. My Vision for Jet Protocol
  6. My reasons for wanting to become a delegate
  7. My Web3 Interests
  8. Languages I speak and write
  9. My skills and areas of expertise
  10. 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.

  1. 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.

  1. 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.

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Good suggestions. Agreed with everything you said.

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Great to hear, let me know if you have any suggestions!

Great thread @Bobby_StableNode, thank you for the information sharing.

What does StableNode think would be an optimal # of delegates for JET governance to work efficiently?

Do you believe it is important to have a balance among the delegation between enthusiastic individuals (i.e. smaller JET stakeholders) & whales/early capital investors etc.? Why or why not?

Looking forward to reading your thoughts.

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Hey, @soze thanks for your questions!

What does StableNode think would be an optimal # of delegates for JET governance to work efficiently?

Everyone should have an opportunity to become a delegate so we don’t believe there is a specific number. In fact, we believe it is more important to have delegates who actively contribute, whether that be a small or large number.

What makes an effective delegate, is a question we should try to focus on. More effective delegates are more important than a certain number, and we should encourage delegate contribution by making it a more attractive role.

Do you believe it is important to have a balance among the delegation between enthusiastic individuals (i.e. smaller JET stakeholders) & whales/early capital investors etc.? Why or why not?

Having a diverse pool of delegates is important, as it gives a range of different views. We support having delegates from a range of different backgrounds and prefer it, however, we do recognize the limitations of both being an individual delegate and a VC.

This is why it is good to have a range of delegates as each type of delegate has its own benefits and drawbacks.

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Thank you for thoughtful reply @Bobby_StableNode !

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Is there any update on this? Should folks post in this thread if they are interested in becoming a delegate?

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Not in this thread, this was just for discussion about delegates. We only had 2 responses so it would be good to hear your thoughts about it. More feedback and support behind this can help move this.

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