I am proposing a Vot3TRU Governance Token
Vot3Tru is a specialized governance token for the TrueFi Protocol designed to enhance and secure governance participation. Here’s a summary of its key features:
-
Locked Governance: Vot3Tru tokens are locked in a smart contract for a specified period, ensuring that governance decisions are made by committed participants.
-
Voting Incentives: Token holders earn a 4.50% annual percentage yield (APY) as a reward for locking their tokens and participating in governance activities. (daily $TRU limit to be discussed)
-
Governance Participation: Exclusively used for voting on protocol proposals and participating in governance forums. Active engagement in governance tasks is required to earn rewards.
-
Early Unlock Fee: A 10% fee is applied if tokens are unlocked before the end of the lock specified duration period, discouraging premature withdrawals and providing additional revenue for the protocol.
-
Active Involvement: To earn rewards, holders must engage in governance activities, including discussions on forums and voting on Snapshot and Tally platforms.
Overall, Vot3Tru aims to foster a more engaged and committed governance community within the TrueFi Protocol while generating additional revenue and incentivizing long-term participation.
stkTRU and Vot3Tru are distinct tokens within the TrueFi Protocol, each serving specific roles to enhance protocol security, incentivize participation, and ensure effective governance.
stkTRU (Staked TRU)
stkTRU represents TRU tokens that users have staked in the protocol. The updated roles and benefits include:
-
Staking Rewards: Holders of stkTRU earn a 4% annual percentage yield (APY) as a reward for staking their TRU tokens. This incentivizes long-term holding and contributes to the protocol’s security.
-
No Voting Rights: Governance participation is no longer tied to stkTRU. Its primary function is to offer staking rewards, supporting protocol stability by reducing token liquidity.
Vot3Tru (Locked Voting Token)
Vot3Tru is specifically designed for governance participation with a locking mechanism that ensures committed decision-making. Key features include:
-
Exclusive Governance Voting: Only Vot3Tru holders can participate in protocol governance. These tokens are locked for a set period, ensuring that votes are cast by committed stakeholders.
-
Enhanced Voting Incentives: Vot3Tru holders receive a 4.50% APY, rewarding them for locking their tokens and actively participating in governance.
-
Active Participation Requirement: To qualify for the APY rewards, Vot3Tru holders must engage in governance activities, such as discussions on the TrueFi forum and voting on Snapshot and Tally platforms.
-
Early Unlock Fee: A 10% fee is charged if Vot3Tru tokens are unlocked before the end of the lock period, discouraging premature withdrawals and and adding to the protocol’s revenue stream.
Interaction and Benefits
- Distinct Roles: stkTRU focuses on providing a stable yield for stakers without granting governance rights, allowing users to support the protocol financially.
Vot3Tru is the exclusive means of participating in governance, ensuring that only those who are committed to the protocol’s long-term success have a say in its decisions.
- Incentive Structure: stkTRU offers a straightforward reward of 4% APY for staking TRU, promoting security and reducing market volatility.
Vot3Tru provides a higher reward of 4.50% APY, coupled with governance participation, incentivizing deeper engagement and long-term commitment.
-
Enhanced Governance Engagement: By requiring active participation in governance forums and voting platforms to earn rewards, Vot3Tru ensures that decision-making is informed and driven by dedicated community members.
-
Revenue Generation and Stability: The early unlock fee from Vot3Tru not only deters early withdrawals but also generates additional revenue, supporting protocol development and sustainability.
Conclusion
The separation of roles between stkTRU and Vot3Tru within the TrueFi Protocol ensures a clear distinction between financial incentives and governance participation.
This structure promotes stability and security through staking, while fostering informed and committed governance through the Vot3Tru token.
The result is a more robust and well-governed ecosystem, with aligned incentives for all participants.
1 Like
Vot3Tru (Locked Voting Token)
Purpose and Function:
-
Exclusive Governance Participation: Vot3Tru is the dedicated token for governance within TrueFi, granting holders the ability to vote on protocol decisions. This mechanism ensures that only committed participants influence governance.
-
Commitment Mechanism: Tokens are locked in a smart contract for a specified duration. This locking period requires a commitment from participants, promoting long-term thinking in governance.
-
Incentives: Vot3Tru holders earn a 4.50% annual percentage yield (APY) as a reward for locking their tokens and actively participating in governance. Active participation is required across various platforms, including the TrueFi forum, Snapshot, and Tally.
-
Early Unlock Fee: A 10% fee is charged if tokens are unlocked before the end of the committed smart contract lock duration period, discouraging premature withdrawals and adding to the protocol’s revenue stream.
Key Characteristics:
-
Voting Power: Solely responsible for governance, with voting rights contingent on locking tokens.
-
Reward Structure: Includes a higher APY (4.50%) and redistribution of early unlock fees.
-
Governance Engagement: Emphasises active and informed participation.
StkTRU (Staked TRU)
Purpose and Function:
-
Staking Rewards: stkTRU represents TRU tokens staked in the protocol, earning holders a 4% APY. This reward incentivizes long-term holding and supports the protocol’s security.
-
Protocol Security: Staking helps secure the network by reducing the circulating supply of TRU tokens, aligning incentives with the protocol’s stability and growth.
-
Non-Governance Role: Unlike Vot3Tru, stkTRU does not confer governance rights. Its primary function is to earn rewards and contribute to protocol stability.
Key Characteristics
-
Staking and Rewards: Focused on generating passive income for stakers and securing the protocol.
-
Liquidity: While staked, tokens are less liquid, but there are typically no strict lock-up requirements as with Vot3Tru.
-
Governance Exclusion: No voting power or governance participation associated with stkTRU.
Comparison
- Purpose and Focus: Vot3Tru is dedicated to governance, with a system that requires locking tokens and active participation to influence protocol decisions.
- stkTRU focuses solely on staking and earning rewards, contributing to the security and stability of the protocol without governance rights.
- Incentive Structure: Vot3Tru offers a 4.50% APY, with additional incentives tied to active governance engagement and a potential share of early unlock fees.
- stkTRU provides a 4% APY, rewarding stakers for contributing to the protocol’s security.
- Governance Dynamics: Vot3Tru holders are the only participants in governance, ensuring that decisions are made by those committed to the protocol.
- stkTRU holders do not participate in governance, focusing instead on earning rewards and supporting the network.
- Flexibility and Liquidity: Vot3Tru involves a commitment through token locking, reducing liquidity but ensuring stable and thoughtful governance.
- stkTRU offers staking without governance involvement, allowing for some flexibility depending on the staking terms set by the protocol.
Synergy and Benefits
Together, Vot3Tru and stkTRU create a comprehensive system within TrueFi.
Vot3Tru ensures dedicated and active governance participation, while stkTRU provides a straightforward staking mechanism to support protocol security and offer rewards.
This structure balances the need for robust governance with the desire for a secure and stable ecosystem, catering to different levels of engagement and commitment from the community.
Thoughts and added suggestions everyone? 
Vot3Tru Governance Token Proposal Analysis
Introduction
The proposal introduces Vot3Tru, a governance token for the TrueFi Protocol designed to enhance governance participation and protocol security. It distinguishes between Vot3Tru and stkTRU, each serving unique roles.
Context and Background
- Current Setup: TRU tokens used for both staking and governance.
- Proposed Change: Separate governance (Vot3Tru) from staking (stkTRU).
Key Features of Vot3Tru
- Locked Governance: Tokens locked for a specified period.
- Voting Incentives: 4.50% APY for locked tokens.
- Governance Participation: Required for earning rewards.
- Early Unlock Fee: 10% penalty for early withdrawals.
- Active Involvement: Mandatory forum discussions and voting.
Key Features of stkTRU
- Staking Rewards: 4% APY.
- No Voting Rights: Focuses on security and liquidity reduction.
Potential Outcomes
- Increased Commitment: Locked tokens ensure committed governance.
- Higher Engagement: Mandatory participation in discussions and voting.
- Revenue Generation: Early unlock fees boost protocol funds.
- Enhanced Stability: Separate roles reduce token liquidity volatility.
Simplified Explanation
- Vot3Tru: Locked token for governance, with 4.50% APY and penalties for early unlocking.
- stkTRU: Staked token for security, with 4% APY and no voting rights.
Pros and Cons
Pros:
- Committed Governance: Locked tokens ensure dedicated participants.
- Incentives for Engagement: APY rewards for active governance roles.
- Revenue Stream: Early unlock fees support the protocol financially.
- Clear Role Separation: Distinct functions for staking and governance.
Cons:
- Liquidity Constraints: Locked tokens reduce immediate liquidity.
- Participation Requirement: Mandatory governance involvement may deter some users.
- Complexity: Two-token system might confuse new users.
Expert Opinion
The Vot3Tru proposal strategically separates staking and governance, promoting a dedicated and informed governance body while maintaining protocol security. This dual-token approach incentivizes long-term commitment and active participation, crucial for the protocol’s growth and stability.
Conclusion and Suggestion
The separation of governance and staking via Vot3Tru and stkTRU strengthens TrueFi’s governance and security. For implementation, ensure clear communication to users about the roles and benefits of each token to minimize confusion and maximize participation.
This structure ensures a comprehensive yet concise analysis, touching upon all critical aspects of the governance proposal.
1 Like
Im in favor of a voting mechanism similar to this design. I think the only thing I would add is a time weighted voting system, where token holders can choose varying lockup periods with different multipliers. This will allow for multi-year participants to control a strong position in the DAO compared to others. Additionally, once we can get stablecoin fees to increase via our pools at Cicada, we could see a path to replacing token emissions with stablecoin yields. Ultimately this will be more sustainable and keep token dumping to a minimum.
1 Like
This idea👍
Its very similar to $Ocean Protocol locking mechanism prior to the $ASI Alliance.
There are several interesting voting mechanisms we could explore for this concept🫡
Yes I was thinking of Ocean’s voting system as well.
1 Like
GPT has corrupted our youth
1 Like
20%
not 100%