Today, we're announcing the next step forward in onchain governance: The Tally Protocol.
The Tally Protocol fully actualizes the value of the systems that token holders own and participate in.
The Tally Protocol unlocks the economic potential of governance tokens by providing a liquidity layer for governance staking and restaking, while optimizing the distribution of voting power to drive economic security back to blockchain protocols.
The Tally Protocol
✤ Creates a smart contract layer that allows DAO token holders to mint Tally Liquid Staked Tokens (tLSTs), which make it easy to earn rewards while maintaining voting power and unlocking additional yield opportunities elsewhere.
✤ Enables governance restaking. Users can stake their governance tokens with Tally and receive a tLST in return that can be deposited in restaking systems. The voting power associated with the governance token remains active.
✤ Increases DAO security. Even the largest DAOs today are at risk of attacks due to low participation in governance. The Tally Protocol reactivates voting power held dormant in DeFi smart contracts and centralized exchanges by returning undelegated voting power to the DAO for redistribution. Undelegated tokens staked in the Tally Protocol are also returned to the DAO for redistribution. This way, DAOs can maintain control over their own security while enhancing token utility.
✤ Incentivizes effective governance. The Tally Protocol ensures token holders no longer have to choose between governance and financial utility. By requiring token holders to delegate to an active participant to earn staking rewards, voting power remains with active DAO voters, enhancing security against malicious attacks and preventing passive governance.
✤ Sustainably incentives DAO delegates. The Tally Protocol creates a fair and transparent mechanism for rewarding active delegates. The modularity of the protocol allows DAOs to experiment with new mechanisms and designs for compensation.
Tally is leveraging its deep expertise, experience, and partnerships to bring the liquidity and security layer to DAOs everywhere. The Tally Protocol is permissionless and open source, and we’ll deliver it to everyone all at once via the Tally platform.
We started @tallyxyz 4 years ago with a mission: to scale human coordination by enabling credibly neutral governance. Today, over $30B is managed by DAOs on Tally and over $661M has been transferred on Tally by the category leaders of crypto.
We’ve partnered with @ScopeLift, the leading governance smart contract development team, to bring the Tally Protocol to life. ScopeLift developed Unistaker and Flexible Voting, foundations upon which the Tally Protocol is built.
Together, we’re going to take DAOs to the next level.
Welcome to the future of decentralization.
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How do we make account abstraction work? Everywhere. Cheaply.
Well, @tallyxyz and @LimeChainHQ are building a proof of concept that is going to blow your mind.
The pitch:
Universal Account Abstraction with zero setup for users and near zero additional fees for relayers.
🧵
At @tallyxyz we started building relayers for delegations and voting, and realized that building universal AA is expensive and bad UX.
But there is another impediment, it's opinionated and difficult to implement.
You need relaying infra on every network.
You need complex logic on every network. Every AA enabled tx has an onchain validation and verification step that both costs gas, needs to be implemented in on every network, is customs, and relayers need to manage liquidity everywhere.
As more and more L1s role out, EVM compatibility will become:
A) less important
B) a negative signal
Why such a radical change of opinion? When I previously thought EVM compatibility was critical for a blockchain success?
A mini thread-
Previously I believed you needed to have EVM compatibility to make inroads in the blockchain developer community. No one has time to learn new coding languages, especially exotic ones.
I think that *was* true, but something changed.
Prior to the most recent bull run, developer talent was relatively scarce compared to other industries.
L1s competed for a small pool of devs, and onboarding new devs was a massive chore: you had to win them away from other non-crypto “shiny new things”
A quick thread on how I think you capture @gnosisSafe.
(This is a hot-take so, please, get fired up in the comments, but keep it civil)
Short answer: you silo the future.
Curious?
A 🧵...
Part 1: The future
On the blockchain, the Meme pool is public everyone can see all future possible transactions and the miners order them in the consensus process.
With Gnosis safe, before transactions go onchain, signers coordinate and send them to the @gnosis tx service...
Part 2: TX Service
The easiest way to use a multisig is to collect all the parties signatures and put them onchain together at the same time. A service is necessary to hold these signatures while you're calling your friend to also sign.
I don't really agree with this piece and I don't think that VC heavy governances are automatically a bad thing. Not every project is a Yearn. A bunch of rich people who collaborate together in a decentralized way, are still people who want to collaborate in a decentralized way.
Them being rich and having outside influence on the thing they are collaborating on building, doesn't automatically make it bad. Some projects are bootstrapped from the ground up, some are bootstrapped from VC's. DeFi has plenty of options for everything in between.
This screen cap is in relation to a discussion on @compoundfinance yet- why does "project growth stalls" follow "governance created"? Compound is the most active governance on-chain in DeFi.
AND it has shown itself to regularly champion "the little guy" who contributes.