What is StakerDAO
StakerDAO is DeFi on Tezos, inspired by both Tezos and MakerDAO.
"StakerDAO is a platform for governing financial assets in a decentralized, secure, and compliant manner."
StakerDAO combines 3 strengths in 1:
- Tezos' on-chain governance (Using the staker governance token "STKR". Later more about STKR.)
- Tezos' provable secure smart contracts (by formal verification, the same methodology used to ensure safety in mission critical settings, such as in aerospace technologies and the $500 billion semiconductor industry)
- MakerDAO's concept of offering Decentralized Financial products.
StakerDAO works with "a multi-token model, one token that governs and other tokens that deliver financial products to their users. While doing so, we acknowledge that some of these tokens offer an expectation of profit and that there are regulatory responsibilities that come with that understanding." This means that StakerDAO's tokens are registered as a security tokens and issued according to applicable regulations.
StakerDAO creates and distributes tokenized financial assets. One of the first tokens created, is BLND, which was voted on in February this year. BLND tracks Proof of Stake tokens and is described as "The easiest way to go long on the best Proof of Stake networks." BLND is an ERC20 tokem but will also be distributed on Tezos in a later stage.
The STKR token
Any changes or additions to the StakerDAO platform are decided on through a governance model. This model is quite like the Tezos governance model. Biggest difference is that STKR holders do not vote directly on proposals. They vote for council members that will do the voting for them for a certain period. The first council is already selected without STKR holders voting, STKR is only just distributed and StakerDAO has been live since Q4 last year. But the first voting round for a new council is expected to take place in Q1 2021.
Right now, STKR holders can propose new ideas for products that can be selected to be formal proposals.
On-chain voting process
The council voting process and the voting process by STKR holders for a new council is on-chain and runs on Tezos. This is great for transparency and very cost-effective. (Cost of registration of a legally binding vote is a few cents.)
Voting by STKR holders for council members happens once a year. Proposals for changes or new asset tokens can be injected every month. Voting on these proposals is only done by council members. Here you can see the governance cycle of new proposals on StakerDao:
The votingprocess can be followed here: https://governance.stakerdao.com/stage. During the evaluation phase, the council members can get a feel for what the community wants. The proposal can be discussed on the StakerDAO discussion forum. For example for proposal 005: https://forum.stakerdao.com/t/proposal-005-blend-on-tezos-5l8lwmfqc/101
If we take a look at the voting round for proposal 005, we see the five current council members with votingrights: Olaf Carlson-Wee, Polychain; Luke Youngblood, Coinbase Custody; Shaishav Todi, Lemniscap; Spencer Noon, DTC Capital; Jonas Lamis of StakerDAO. We see for example that council member Olaf Carlson-Wee has voted on May the 20th this year, which we can see on-chain on this blockexplorer:
There is a total of 1,500,00 STKR tokens live on Tezos:
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