harmony has been practicing open development since our day ONE and today, i would like to start this open thread to discuss the idea of a DAO that would be managing our Bitcoin bridge and potentially other bridges as well.
below is our start. we are looking for community engagement and deeper dives into both the idea and how to execute it. looking forward to writing with many of you in the coming weeks!
The Harmony Bitcoin bridge is the first trustless and decentralized Bitcoin bridge to an EVM chain, launched in February 2022.
The 1BTC DAO takes ownership of the entire Bitcoin bridge product and ecosystem.
Harmony Foundation will provide initial funding up to $1M to bootstrap the DAO with the goal of 1BTC DAO becoming completely self-sustaining within one year from launch.
#ONEBTCDAO
Mandates:
Build: BTC bridge platform and scale its technical ecosystem including vault runners
Develop: partnerships to expand the use cases and adoption of 1BTC on Harmony
Grow: the overall 1BTC DAO into a self sustaining token project
Deliverables and Metrics - first 3 months:
Grow the total value locked and users on the bridge by 20+% monthly with partners.
Attract more vault runners to ensure bridge security, grow the number of vaults by 20+% monthly.
Develop and publish the tokenomics model for a long term sustaining product DAO with community feedback.
Governors: to be determined.
Gnosis Safe Multisig Wallet: to be created by the governors.
Schedule the Next Election: to be scheduled by the initial governors.
hey @WhitePeach, that is one of the topics that we can openly discuss. we can deep dive. should each bridge be a separate dao, or should all the bridges be organized into one dao, which governs and runs multiple bridges?
From the all hands call, regarding the btc bridge, I think there’s a great opportunity to offer a governance token as a kind of incentive for staking ONE on the BTC bridge.
That would be in addition to base APY reward you outlined, to both increase ONE/1BTC staked and also to allow the community the opportunity to govern the future of the bridge.
This could be done via an airdrop at a later date, but this might solve the problem that is, “how does the bridge decide what to charge/pay-out and who benefits or pays for those charges?”
Does that make sense with what you were thinking @lij or would a token complicate the essential nature of the bridge too much?
@gupadhyaya + @lijiang2087
Saw during the all hands that there was some discussion about a 1BTC bridge DAO.
I had previously brought up some ideas regarding this subject, I still believe it sounds like it could be very useful but had a few comments to add:
After thinking about it for some time, I was curious if perhaps it should be considered something like an ONE-xClaim Bridge DAO (which is the architecture it’s based on) because
I’m actually currently drafting a proposal about how the 1BTC Bridge infrastructure can be easily adapted for the Ergo Blockchain and other eUTxO models afterwards. and
I believe this kind of DAO and governance model would help to streamline the need for liquidity as more and more chains begin to work to bridge to Harmony; beyond the BTC bridge. Especially when it comes to defining a reward structure for the liquidity providers for the structure of the Trustless infrastructure.
Here’s the post I just made which seems relevant to this conversation about the 1BTC DAO
From speaking to some people in the community, one big learning opportunity and optimization that a 1Bridge DAO (and possible Bridge DAO Token) could bring would be the ability to raise funds and stabilize the yield for Vault Liquidity Providers.
Currently the model of paying exclusively based on bridging fees seems to be undesirable for those whom are funding the Vaults, and could be a problem as more and more bridges come online.
As more and more people begin to use BTC as a reserve currency, and the ONE ecosystem grows, I believe the bridge fees could represent a more viable option but for now, allowing for a stable income of DAO Tokens or allowing a funding model where Ecosystems which want to bridge would be able to raise a reward fund to spur investment until the bridge fees represent a more lucrative options for Vault providers.
At which point the fees associated with the 1Bridges could be adjusted to support the amount of traffic a bridge is seeing.
Any comments or thoughts would be greatly appreciated!
Sorry for the data-dump! I’ve been thinking about this for a while! Thank you for leading the charge @lij
thanks for your engagement and ideas @eddnorris. will be reviewing with @ganesha who has been working on incentive structures as well. in the meantime, open to more community suggestions.