As leaked earlier this month, the Tokemak team has been working on introducing additional governance mechanics to the protocol. TOKE holders are currently able to vote for candidates during Collateralization of Reactors Events and utilize their power to direct liquidity to various venues, but traditional Snapshot-style proposals have been missing.
Today, the team has proposed the formation of the "Tokemak Foundation," a legal entity that will work towards the best interests of the DAO and allow the protocol to function more autonomously. This structure follows in the footsteps of MakerDAO, and is essential to ensuring the long term success of a decentralized protocol.
In practice, this change would allow the Tokemak team to transfer legal ownership of existing assets and intellectual property to a purpose-built company that is mandated to serve the Tokemak Protocol. The foundation would have a respected lawyer acting as the local director to handle meat-space responsibilities, with Liquidity Wizard appointed as the DAO representative to oversee the foundation.
The formation of the Foundation will be the first Tokemak Improvement Proposal put forth to the community, and will mark the beginning of a new era of governance by the Tokemechs.
We anticipate that this new governance system will also be used for proposing and ratifying new Reactors after the (final?) C.o.R.E.4 round. Combined with ACC and accTOKE, which will enable DAOs to permanently deposit assets into the protocol and gain boosted voting power via staking, a whole new power dynamic may emerge.
Join us in the new #dao-governance channel to take part in the decentralized revolution! If you are interested to hear a bit more about the challenges of governance, check out the latest episode of the Starbased Podcast.