Thread by @ChainLinkGod

Final panel of the day, fireside chat with @CamiRusso, @kaiynne, and @rleshner

@synthetix_io foundation dissolved itself to three DAOs, @compoundfinance moved to token governance replacing administrator

@kaiynne: previous centralized oracle was a point of failure, knew they needed to decentralize the oracle, looked around and Framework connected them to @chainlink, talked to team and it was the path forward, one of the first projects to integrate Chainlink Feeds

@rleshner: @compoundfinance uses @chainlink for price feeds, process unfolded through governance process, started off centralized, three stages, entirely centralized, then was open price feed, and then third was choosing Chainlink

Kain: People was skeptical about approach to have rapid iteration, proxy contracts control by foundation at the time, over time decentralized to community governance, far beyond now first thought

Kain: though it was be checks on power at first, stage gates, but actually went much further, representative democracy with council voted in by token holders who vote in changes, foundation is gone now

Leshner: goal was build financial market that would run for 100 years, so couldn't be centralized, anti-fragile system out live any member of team, question was how to get there, no playbook, learned from MakerDAO, Synthetix, and other projects, designed own process

Voting on code changes without intermediates, wanted to design to be completely open, Compound governance system contracts is now used by other projects, OpenZepplin offers it as standard library

Leshner: Most important thing to hand over control is that the protocol has to be running with stability, needed a lindy effect first, so the community didn't need to react overnight to anything, one week governance process slow by design, one year after last major code release

Centralization means you can move fast, decentralization you lose some of that, eased the community into it, alpha test of public governance, three month period before COMP token, tested voting

Kain: Governance frameworks out there was minimal, no playbook or off-the-shelf components, older DeFi protocols have quite different governance systems, if Compound contracts were available Synthetix probably would have used it, always trade-offs with each project

Slowly added to governance and gave power over, create new mechanisms, who got power, how they exercise that power, Snapshot and Gnosis safe was used, much more interative than all pre-planned

Direct democracy versus representative versus delegation, Synthetix moving towards Compound model

Want to go from multi-sig to go on-chain voting, review contract change before deployment, then council votes on it

Multi-sig will need to transition to spartan council, who use their NFTs to vote, 8 people in spartan council

Leshner: Built a process that is the safest and most reusable by other teams, teams don't need to reinvent the wheel, everyone gets to use these tools

Enable community to create their own proposal, community members who worked with Chainlink added new assets to the Compound protocol, if the community wants to use Chainlink VRF or Proof of Reserve, they can vote it in

Kain: An engaged community is invaluable, need a community to hand power over to, need community building, came back to council to help some of the inefficiencies

Most projects have a leader, figurehead, but there's a difference between the face of a protocol and controlling the protocol, hard process

Leshner: Always going to have spiritual cheerleaders, even if you aren't controlling it, over time founders become less important

Biggest lesson from Compound governance that it's going to be slow, maximize stability, high ratio of proposals from community members, if Nike were a token run corporation what would it look like, not everyone doing all the work, experts specialize

Leshner: Whoever has the most shares has the most control, that's pretty standard, people want to see ownership to those with the most effort put it, not a problem for those with largest stake to have highest control

Kain: Disagrees, not a problem for Compound bc delegation, but there a plutocratic element, social plutocratic get a lot of delegation, less of an issue as what's being voting on restricted, Synthetix took a different way to prevent MakerDAO direct voting issues

Rough consensus process for a long time, as it went on-chain tried to prevent the power of whales, if you a Synthetix whale, you can get one or two person, but not five, hybrid rough consensus process, balance between whales and community members

Leshner: most contentious vote was decreased collateral factor on WBTC, Leshner was against it, lost, collateral factor reduced, community debating vote

Kain: change inflation vote, Kain was against, preferred halvening but community said no, went to a vote went trhough

Companies likely won't turn into DAOs, they will be overtaken by DAOs

Thank you to @CamiRusso, @rleshner, @kaiynne

@rleshner gave a OK;LG goodbye, very based