Forth DAO Charter?

By the middle of next month, we can expect the Forth DAO to control upwards of $27M of treasury assets. There have already been some conversations about how these assets can be used and there are some idea boards being shared around about how to further develop the governance system.

However, I think if we want to focus our activities in the best possible way, it’s worth considering putting together a charter for the Forth DAO. This wouldn’t have any direct impact on the execution of smart contracts on chain, but it would go a long way in strengthening a collective and cultural agreement within the community about how to allocate capital, how to balance short and long term goals, what to work on, and generally how to prioritize.

And I don’t think it would need to be very long, probably just a few sentences would do the job really well.

As I mentioned in the proposal for the first FORTH mint, the main points I’d propose to be in it are:

  • Funding protocol operations
  • Investing to generate yield and grow the DAO treasury for long term sustainability
  • Grants to encourage development of the Ampleforth protocol and broader Elastic Finance ecosystem
  • Provide incentives for liquidity and market growth

In one sense, this approach is a bit like how a University approaches an endowment. What do others think? Are there any other ideas?

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I think a charter makes sense.

I think investing some of the Forth to generate yield makes a ton of sense for long term sustainability. Maybe 20-30%.

I think there should be some small reward (2-3% of treasury) for those in the community who have remained active with the AMPL protocol in some capacity (could be continued geyser usage on different chains, buy-selling, lending, etc).

Market growth incentives also makes sense to me. Doesn’t need to be super large in scale but taking the same approach that’s be used with Aave on other lending platforms. Since AMPL is now on avalanche, i think it would make a ton of sense to have AMPL available for lending and borrowing on Avalanche on both Aave and Banker Joe. The Trader Joe team is constantly trying to innovate and having AMPL on their lending platform seems like a great way to get that community into AMPL as an alternative to stables.

I also think some additional marketing/education videos should be created to educate people about all the recent changes and additions to AMPL such as wAMPL, understanding what borrowing and lending an elastic asset means for you etc.

The overall goal is to get AMPL adopted as a regular means of exchange rather than stables, which i think is important.

Maybe include a simple mission statement with the big picture idea. Something like, “The mission of the Forth DAO is to build and promote an uncensorable unit of account that is accessible to all people, and to fund development of elastic decentralized finance.” Or something along those lines.

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I agree with the fact that a clear vision is needed to become approachable and to make the community grow. To gain adoption we must keep an eye on simplicity & user experience.

The DAO should focus on the third point and hire, if necessary, qualified developers to improve current tools and to integrate Forths’ DAO main features in Ampleforth’s website.

For example, the current voting registration system is not user friendly. That is probably one of the reasons why there are so little voters on the proposals.

In addition, the oracle rate lacks of transparency as some members of the community pointed out after the recent oracles divergences. An updated aggregated oracle rate is needed and should be visible 24/7 to the community members.

Moreover, an AMPL revenue/tax calculator is a must to clarify operations within different rebase periods. Unless the community finds a way to simplify the accountability of Profits & Loss of operations held in AMPL, our beloved coin will never become a truly Unit of Account.

Still, I am very positive with AMPL’s new role, after “sAMPL” is launched.

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Agree the first FORTH mint , Agree burn the unclaimed FORTH.
Don’t sell the unclaimed FORTH anyway!!!

I am in favor of a narrow well specified mission for the DAO. Riffing off of what @ducc said, I’m tempted to go as far as saying “The Forth DAO should be solely dedicated to the growth and adoption of AMPL”.

It can do so through many initiatives like liquidity mining, buying and owning on-chain liquidity, funding ecosystem development, investments in direct marketing or through new innovative ways members of the community come up with, all of which are in service of said mission.

This would also create a tighter coupling between between both assets, i.e) AMPL and FORTH.

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This token literally has no sustainable value and keeps declining to lower lows. When will you guys make an incentive to invest in this governance token. Remember , the treasury holds 3.5m+, either burn some, have a lock up to stake, or do something to gives this coin more value.

They will sell because they need the money to find ‘other projects’ meanwhile the value of FORTH continues to decline, and they continue to mint more for some odd reason

I’d like a narrow charter too. The means how to achieve “growth and adoption” probably change in the future again and IMHO the charter should not determine the actions the ForthDAO will take but rather the goals it wants to achieve.

However, now the team released more pieces of information about their plans for SPOT, which should also be governed by the ForthDAO (see here). The question arises, is it still correct to state it’s only dedicated to AMPL?

What do you think about something like: “The Forth DAO is dedicated to the growth and adoption of AMPL as well as selected protocols within the Ampleforth ecosystem”?

Which protocols the ForthDAO selects to support would need to be decided on by voting. I’d argue that this would also mean that there should be a vote on whether the ForthDAO even wants to support SPOT.

(As a small sidenote, my long-term goal for the rhAmple protocol is an incubation into the ForthDAO as well. This could then be an additional “selected protocol”.)

I also like @aalavandhan1894 's narrower scope. It’s clear, honest, and easy to apply.

@pascal-merkleplant :

However, now the team released more pieces of information about their plans for SPOT, which should also be governed by the ForthDAO (see here). The question arises, is it still correct to state it’s only dedicated to AMPL?

SPOT demand drives AMPL demand, so I think it’s well within scope.

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