The launch of TrueFi to the public was the first step toward building a new decentralized platform for uncollateralized lending that relies on a network of unrelated participants to determine the creditworthiness of borrowers. As stated in the protocol’s introduction, at launch TrueFi’s initial borrowers will be vetted by the TrueFi development team for their creditworthiness. These borrowers have demonstrated a commitment to building a system to decentralize the decision to issue loans and for liquidity providers to have a say in how their capital is deployed. After months of hard work, it is gratifying to see a respected industry participant like [Alameda Research] apply for the first loan from the protocol.
Prior to TrueFi’s launch, the development team committed to a goal of progressive decentralization with the ultimate goal of putting control of the protocol into the hands of its users. In order to meet that goal, the protocol must have a way to allow the community to provide input and decide the best ways to:
- Add new lending pools
- Vet and approve new borrowers that don’t have a prior relationship with the development team
- Add new assets to be loaned and borrowed
- Ensure the long-term viability of the platform
The following is an outline for how to transition TrueFi to a community-governed platform.
Like many other decentralized protocols, TrueFi will function best if the community of users who best understand the platform and have its long-term success in mind propose new ideas and build community support for any changes to the protocol. The process should be transparent and allow for community participation.
Over the next few days, the development team will outline a proposed workflow for any member of the community to suggest an improvement, receive feedback, build community support, and ultimately vote on a proposal. Generally, the workflow will follow the following format:
Suggest an Idea
- Suggest an Idea on https://forum.truefi.io/ - Members of the community are encouraged to join the TrueFi Forum and submit an initial idea for a change to the protocol.
- Engage in conversation with the community and build support for a proposal by taking feedback and resolving critical issues.
- Collect documentation to submit a proposal
Submit a Governance Proposal - TIPs
After suggesting an idea and engaging with the community, the next step for any change is proposing a TrueFi Improvement Proposal (“TIP”) by:
- Identifying a community member or members willing to lead the effort to prepare, submit, and advocate for “TIP”
- Submitting the Proposal to the Forum with documentation that allows the community to clearly understand what changes will be made as a result of the “TIP”.
- Work with community members to prepare the Proposal for a community vote.
Community Vote
Once a “TIP” has been vetted and includes all the necessary documentation for a vote the Forum’s Community Managers will submit the “TIP” to the community to vote. The development team is currently hoping to implement Snapshot as a mechanism for holders of TRU to vote on proposals.
Conclusion
The development team will include more details on the format and process for submitting Proposals by drawing on the existing best practices in decentralized governance. In the meantime, please add any comments and suggestions in the comments to this post.