PastaDAO Update — April 2021

Hey folx,

It’s been a couple weeks since my last post on PastaDAO, so it’s high time for another update.

🗳 Governance

Proposal 1: Activate PASTA foodbank (treasury) — Passed ✅

This authorized setting the PastaDAO multisig as the initial treasury address, with support in a Snapshot vote and on chain proposal. The multisig is currently set up as 2 of 3, with myself (monetsupply.eth), mubaris, and andy8052 serving as the signers.

Proposal 2: Custom emojis for the discord server — Passed ✅

This snapshot proposal supported spending $100 per year towards boosting the PastaDAO discord server, which allows for more features like custom emojis.

Proposal 3: Donate PASTA to public goods — Passed ✅

This snapshot proposal confirmed general community support for granting funds from the treasury towards public goods matching (eg through Gitcoin) and other donations. An additional proposal will be submitted soon to confirm final donation amounts and scope.

Proposal 4: Move to new snapshot voting page — Passed ✅

This snapshot proposal (mirrored on the new page here) authorized holding future governance votes in the pasta.eth snapshot space, which allows for voting with PASTA held in Uniswap LP positions.

Proposal 5: Authorize PASTA liquidity mining — Passed ✅

This snapshot proposal authorized spending up to 100,000 PASTA from the multisig towards a 1 week incentive program focusing on the Uniswap PASTA/ETH pool. Incentives have not yet begun, but will be announced in Discord at least 24 hours before the start of the rewards period.

The liquidity incentives use a mechanism developed by mubaris, where reward funds are transferred directly to the liquidity pool, which eliminates the need for staking LP tokens in a contract to receive rewards (saving users gas ⛽)

Proposal 6: Reimburse DAO expenses — Passed ✅

This snapshot proposal authorized transferring 8,128 PASTA to monetsupply and mubaris as reimbursement for DAO setup expenses, including gas costs, discord boost incentives to follow through on proposal 2, and purchase cost of pasta.eth ENS domain. Costs were benchmarked at a price of 4 Pasta per $1, or 7,200 PASTA per ETH.

Proposal 7: Fund development grants —Ongoing until April 4 @ 3:00 UTC ⏳

This snapshot proposal would authorize transferring a total of 120,000 PASTA from the multisig to parties who contributed to the PastaDAO codebase or foundational open source infrastructure. Mubaris would receive a grant of 60,000 PASTA (30,000 upon approval, 30,000 released 3 months afterwards), while Compound and Uniswap governance would receive 45,000 and 15,000 PASTA respectively once the price of PASTA reaches $1.

🏗 Development / Operations

The liquidity incentive and governance contracts are complete! Take a look and please reach out if you have any feedback.

Next step will be contract deployment. The liquidity incentive contract is fairly simple and can be used freely after launch, but the governance contracts will be deployed with certain immutable values which we want to get right the first time to avoid unnecessary governance migrations. These include:

  • Proposal submission and quorum thresholds — we can follow Compound and Uniswap’s lead with 1% and 4% thresholds, or choose different values.
  • Voting period — currently leaning towards a 5 day voting period, which strikes a balance between agile decision-making and ease of voter participation.
  • Cooldown withdraw period — this is likely one of the more important choices. Similar to Aave’s staking mechanism, users will need to request a withdrawal of their LP tokens from governance, wait a predefined cooldown period, and then make a second transaction to complete the withdrawal within a following redemption period.

I’m currently leaning towards 3 days for the cooldown period with a 2 day redemption window. This could help deter governance attacks, as a malicious proposer would need to keep their funds within governance for the full voting period to avoid the proposal being cancelled. This ensures they would be the last to withdraw and suffer significant losses for staging the attack.

As we get close to finishing these initial PastaDAO building blocks, we’ll be able to turn towards other avenues for future development. If you’re interested in building with a sustainable, decentralized community, come join us in discord.

🏦 Treasury

As of 2 April 2021, the PastaDAO multisig has a balance of 1,509,704 PASTA, worth $280,000 at mid market prices and convertible to roughly $80,000 based on current pool liquidity.

A total of 108,128 PASTA has been authorized for transfer by governance proposals, and assuming proposal 7 passes this will grow to 228,128 PASTA in total authorized but not yet issued transactions. This leaves a net unallocated balance of 1,281,576 PASTA available to governance.

I’m planning to submit a formal donation proposal in the coming days (following up on proposal 3), which will request authorization for roughly 150,000 PASTA to be converted to ETH or DAI and transferred to Gitcoin matching. This would allow for PastaDAO to participate as a sponsor of Gitcoin grants round 10, while reducing the unallocated PASTA treasury balance to ~1,130,000.

While governance has approved some PASTA outflows, the foodbank continues to deliver inflows from half of the 2% fee on PASTA transfers. The figure below from the PASTA token contract shows 69,000 PASTA accrued to the treasury since the on chain funding proposal was executed on March 14 (equivalent to $11,000 or roughly $575 per day 👀). Funds can be transferred to the multisig by calling the give function on the PASTA token contract.

Also of note is the “oven” field, which denotes PASTA waiting to be burned (the other half of the 2% transfer fee is removed from token supply). Users can burn these tokens and update the total supply to the new lower amount by calling burn on the PASTA token contract.

Thanks for reading, and stay hungry my friends 🍝

**Disclaimer**: This article is for informational purposes only, and does not constitute financial, legal or tax advice.

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Interested in decentralized finance and crypto UX.

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