dYdX Treasury subDAO - Update & Call for Community Signers

Treasury
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This post provides an update on the dYdX Treasury subDAO and calls for 3 Community Signers to join the Treasury subDAO Multi-sig.

Update on the dYdX Treasury subDAO

With the approval of proposal #157, karpatkey has been tasked with setting up a Cayman Foundation to receive ~40M DYDX tokens from the Community Treasury. The dYdX Treasury subDAO’s treasury will gradually diversify assets by accumulating stablecoins through validator staking, helping to further secure the dYdX Chain.

The staking program is being designed to drive both treasury sustainability and ecosystem security and growth. dYdX Chain validators will be delegated DYDX tokens from the dYdX Treasury subDAO’s holdings following the selection criteria set out below and will be able to benefit from their respective validator commission.

Selection criteria for the Treasury subDAO’s DYDX delegations will be shared at least one week before the staking program goes live. Familiarizing yourself with the dYdX Foundation’s Good Practices for dYdX Chain Validators and Stakers is a good starting point to increase your chances of being selected as a validator within the Treasury subDAO’s staking program.

We have started the process of setting up the legal and on-chain infrastructure for the subDAO. An approximate timeline for the next steps is as follows:

  • we plan to have the legal entity and on-chain infrastructure ready by the end of October 2024;

  • consequently, we expect the community spend governance proposal to go live in November;

  • once the funds are transferred to the Treasury subDAO, we will proceed with implementing the staking program and delegate the DYDX tokens;

  • potential delays may occur due to circumstances outside of karpatkey’s control.

Call for Community Signers: Treasury subDAO Multi-Signature Wallet

Following best practices of on-chain treasury management, we will rely on an on-chain infrastructure that requires multiple signers to approve any action related to the assets held by the dYdX Treasury subDAO. This critical component requires the participation of community members, and we are reaching out to explain the structure and seek qualified individuals to serve as Multi-sig Signers.
The Treasury subDAO will utilize a 3-of-6 wallet signer configuration. This structure will consist of two groups: Group 1 will comprise three signers from karpatkey, while Group 2 will include three Community Signers. To execute a valid transaction, a total of 3 signatures are required, with at least 1 signature coming from each group. This design ensures that neither karpatkey nor the Community Signers can unilaterally transfer funds.
We are now actively seeking three qualified individuals within the dYdX community to serve as Community Signers for the Treasury subDAO multi-signature wallet. This is a position of significant responsibility and trust within our ecosystem.
To get an indication of the associated frequency of signing transactions, we expect to review the delegations at least every 3 months and rebalance as needed, and claim staking rewards at least biweekly.

Who is a suitable multi-sig signer?

Suitable multi-sig signers should meet the following criteria:

  • Demonstrated active engagement within the dYdX ecosystem;
  • Verifiable experience in multi-signature wallet management and adherence to security best practices;
  • Willingness and ability to complete the required internal Know Your Customer (KYC) process;
  • Eligibility and willingness to serve as a director in the Cayman Foundation (there are no shareholders or members, so directors may be marked as UBOs and be required to go through KYC with service providers from time to time);
  • If individuals are affiliated with an organisation, only one individual per organisation may apply, and applications must be submitted in a personal capacity rather than on behalf of the organisation;
  • Preferred: Proficiency in navigating Apple iOS devices, as this may be necessary for certain operational tasks.

Is this role compensated?

Each of the selected Community Signers will be compensated $500 per month, paid in DYDX tokens based on a 30 day TWAP.

How does the selection process work?

If you wish to apply to be a Community Signer on the Treasury subDAO Multi-sig, please comment on this post by completing the application template below. Please keep answers short and straightforward.

Timeline:

  • The application deadline is Friday, October 18th, 2024 at 12pm UTC
  • The 3 selected Community Singers will be announced on Monday, October 21st, 2024
  • The official onboarding will be coordinated with each Community Signer in the following days.

Selection criteria:

  • The 3 Community Signers will be selected among the suitable applicants (see suitability criteria above) based on their experience in Web3, involvement with the dYdX ecosystem, and previous experience with multi-sigs.

Application Template

DAO-recognised name:

Country of residence & Timezone:

Affiliations:

Occupation:

Motivation for applying (max 3 sentences):

Contributions to Web3 (list, max 5 elements):

Contributions to the dYdX protocol or DAO (list, max 5 elements):

Previous experience with operating Multi-sigs (list and brief explanation of each):

Conflict of interest (if any):

Failure to follow the application template will result in disqualification from the selection process.

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Hey guys! Happy to throw my hat in the ring to participate as a community signer. Quick question. Will the multisig be a CLI-based multisig or would we be using a web UI like the Keplr multisig tool?

My responses to the application are below!

DAO-recognised name: RoboMcGobo

Country of residence & Timezone: US, EST

Affiliations: dYdX Ecosystem Development Program, Stride Labs, Osmosis Grants Program

Occupation: Full time web3. BD / Grants lead

Motivation for applying (max 3 sentences): The treasury subdao will largely be responsible for managing treasury delegations. I feel like I can add some experience here as I have a strong level of familiarity with Cosmos validators and common delegation practices. I also have a lot of experience sitting on multisigs and am familiar with multisig operations.

Contributions to Web3 (list, max 5 elements):

  • Administration of Stride’s delegation program for a number of chains (incl. dYdX)
  • Multiple governance contributions for chains like Osmosis, Stride, dYdX, and others.
  • Helped bring a number of grantees to market at both dYdX and Osmosis.

Contributions to the dYdX protocol or DAO (list, max 5 elements):

  • Community grantor at the dYdX Ecosystem Development Program.
  • Worked with Stride to bring stDYDX to market and helped pursue integrations for liquid staked DYDX
  • Wrote some early content in these forums introducing dYdX to the Cosmos ecosystem

Previous experience with operating Multi-sigs (list and brief explanation of each):

  • (Former) Osmosis Grants Program Multisig: Custody of and disbursement of grant funding for the OGP.
  • Osmosis liquidity subdao: Management of a subset of Osmosis treasury funds, and deployment into various protocol-owned liquidity usecases.
  • Hydro Committee Multisig: Custody and management of Cosmos Hub protocol-owned liquidity via the Hydro auction protocol
  • Various one-time multisigs for specific transactions across the Cosmos ecosystem.

Conflict of interest (if any): While I don’t perceive there being any current conflict of interest given the treasury subdao’s current mandate, there’s a possibility that in the future a conflict could arise if the subdao’s mandate expands to cover management of the stDYDX in the community treasury. This could create a conflict due to my employment with Stride Labs. If this were to occur, I’d simply screen myself from participating in any discussions or votes / signatures involving that position.

Thanks for the consideration! Happy to answer any additional questions as well :slight_smile:

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Application

DAO-recognised name: Thomas Hoang - TTT VN

Country of residence & Timezone: Vietnam, UTC+7

Affiliations: TTT VN, TTT Capital, TTT Labs
Occupation: Founder of TTT VN

Motivation for applying (max 3 sentences): I am deeply committed to the success of the dYdX ecosystem and believe that my experience in blockchain validation and multi-signature wallet management can contribute to the security and growth of the Treasury subDAO. I am eager to be part of this initiative and help ensure a secure and transparent management of the treasury assets. My motivation is to support the community and apply my skills to foster the long-term sustainability of the protocol.

Contributions to Web3 (list, max 5 elements):

  • Validator Operations: Operated validator nodes on major blockchain networks such as Cosmos, Injective, and dYdX, contributing to network security and decentralization.
  • Community Building: Founded Tiền Thuật Toán (TTT VN), one of Vietnam’s largest and oldest blockchain communities focused on Proof of Stake and validator ecosystems.
  • Berachain Collaboration: Played a key role in expanding the Berachain ecosystem in Vietnam by organizing community events and educational activities.
  • Governance Participation: Actively participated in governance decisions on various decentralized protocols, including voting on key proposals.
  • Staking Infrastructure Development: Helped develop staking programs aimed at enhancing treasury sustainability through decentralized mechanisms in the Web3 space.

Contributions to the dYdX protocol or DAO (list, max 5 elements):

  • Validator Support: Operated a validator for the dYdX Chain, contributing to the security and decentralization of the network.
  • Governance Engagement: Actively participated in dYdX governance by reviewing and voting on key proposals, including those related to treasury management and protocol upgrades.
  • Community Education: Organized and led educational sessions for the Vietnamese community on dYdX’s features, staking, and governance mechanisms.
  • Ecosystem Growth: Collaborated with dYdX Foundation initiatives to promote awareness and adoption of the protocol within Southeast Asia.

Previous experience with operating Multi-sigs (list and brief explanation of each):
Cosmos Hub Multi-sig: Managed a multi-signature wallet for staking rewards and validator node operations, ensuring secure fund management for community-delegated tokens.

Conflict of interest (if any):
Although I do not currently see any conflicts of interest with the responsibilities of the Treasury subDAO, if such a situation arises in the future, I will prioritize the interests of the dYdX community over personal gain.

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On behalf of the PRO Delegators’ validator and the Govmos Initiative, we present the candidacy of one of our founding member.

DAO-recognized name: Phil_RX
Country of residence & Timezone: France, CET (GMT+2)
Affiliations: Govmos Initiative Founder, PRO Delegators’ Validator Co-Founder, PRO Indicators CEO, and Strategy Advisor for various Cosmos Ecosystem projects.
Occupation: Full-time Trader, Risk Management Advisor, Community Leader, DAO Member, and Web3 Specialist.

Motivation for applying:
Phil brings a wealth of experience across multiple DAOs within the Cosmos ecosystem, making him a governance expert and an adept financial manager. With over 15 years of expertise in risk management, his skills would significantly enhance any treasury management organization. Supported by a knowledgeable validator team, Phil has access to all the technical resources necessary to tackle complex tasks.

Contributions to Web3:

Contributions to the dYdX protocol or DAO:

Previous experience with operating Multi-sigs:

  • Osmosis protocol-fee subDAO: Phil is responsible for building a revenue-based financial model to guide transparent decision-making for protocol fees.
  • Hydro DAO: Manages risk and creates a whitelisting framework for the committee overseeing Cosmos Hub’s protocol-owned liquidity.
  • PRO Delegators: Serves as CFO & CSO, managing treasury and financial strategy allocations.

Conflict of Interest (COI):
No conflict of interest should arise under the current mandate of the dYdX chain’s treasury subDAO. Phil will fully comply with the required KYC procedures.

Thank you for your consideration. Phil is available to answer any additional questions. For more details on his activities, you can view his public LinkedIn profile here.
pro-delegators-sign

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It will be a web UI.

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Hi everyone! I am pleased to submit my candidacy for the role of community signer. Please find my application details below:

DAO-recognized name: Kam BENBRIK

Country of Residence & Timezone: Madrid, Spain (Central European Time, GMT+2)

Affiliations: Chorus One, Osmosis Grants Program

Occupation:
Researcher at Chorus One, I am involved in network onboarding, general protocol research, and managing Cosmos-related governance processes. Chorus One is a leading staking infrastructure provider, managing $2B+ in staked assets, with expertise in staking, governance, tokenomics, and infrastructure. We have been involved with the dYdX Chain since its inception, contributing notably with research, including a paper on MEV on the dYdX v4 Chain.
In addition to Chorus One, I am also part of the Osmosis Grants Program team.

Motivation for Applying (max 3 sentences):

  • Committed to enhancing the security and decentralization of the dYdX Chain.
  • As an early contributor to the dYdX Chain through Chorus One, I would like to get involved in other aspects of the chain and continue contributing to the overall health of the network.
  • I would like to help and bring my expertise, as I am very familiar with the dYdX architecture.

Contributions to Web3 (list, max 5 elements):

  • Contributed to governance across multiple Cosmos SDK-based blockchains, including dYdX.
  • Provided research support on architecture, decentralization, tokenomics, and operator strategies for various Web3 teams.|
  • Facilitated the onboarding of multiple blockchains and offered staking support.

Contributions to the dYdX Protocol or DAO (list, max 5 elements):

Previous Experience with Operating Multi-sigs (list and brief explanation of each):

  • Former participant in a multisig for an Investment DAO

  • start.cooking multi signature (Dapp on Osmosis)

  • Various one-time multisig participations across Cosmos

Conflict of Interest (if any):
I currently see no conflicts of interest with the responsibilities of the Treasury subDAO. If any arise, I will remain transparent and address them accordingly.

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These are quite some requirements. I can understand the KYC part, because it involves handling quite a large sum of funds.
But being a director of the Foundation? Doesn’t that effectively mean that when things go down the drain you as a person are responsible? So there is a large legal risk involved, which I personally never ever would recommend anyone in crypto to be taking.

I know I would potentially fit into the picture (with a bit less with respect to meeting the exact requirements, but with the upside of being completely unrelated to dYdX limiting potential conflicts of interest and being able to look at things from a neutral standing), but this certainly puts me of.

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Hi everyone,

I’m happy to share my application to become one of the 3 Community Signers.

DAO-recognised name: Florent Gatin

Country of residence & Timezone: The Netherlands, CET

Affiliations: Crosnest validator, dYdX Grants Program, dYdX Validator, and IBC relayer

Occupation: Entrepreneur in Audio Technology and Blockchain, Co-founder and CEO of Crosnest

Motivation for applying: I am a big advocate of the dYdX chain, one of the projects with the best product/market fit in the crypto space. Having run multiple businesses for over 12 years, I have gained experience with financing, treasury, accounting, and foundation delegations, which I’d like to share in this role of Community Signer.

Contributions to Web3:

  • Co-founder of Crosnest, a staking provider validating over 50 mainnet networks
  • Top IBC relayer with $2 billion total relayed value
  • Crypto.com Ambassador

Contributions to the dYdX protocol or DAO (list, max 5 elements):

  • Crosnest is a top validator on the dYdX chain
  • Crosnest is a dYdX Grantee, exploring the deployment of a Connectivity node to improve the trading experience on the dYdX chain
  • Crosnest is running IBC relayers between dYdX and other important chains of the Cosmos ecosystem
  • Crosnest writes blog posts highlighting projects such as the dYdX chain

Previous experience with operating Multi-sigs (list and brief explanation of each):

  • Core Relayer DAO: Osmosis Core Relayers
  • Crosnest: CEO (and CFO) of Crosnest, part of multiple multi-sig wallets

Conflict of interest: I see no conflict of interest at this moment and I don’t foresee any arising in the future

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Hello. I’m happy to apply as a community signer.

DAO-recognised name: Carameleon

Country of residence & Timezone : Seoul, South Korea(UTC+9)

Affiliations: Cosmostation

Occupation: Head of R&D at Cosmostation, Node operator, Developer

Motivation for applying (max 3 sentences):
I have extensive experience contributing to various networks, including enhancing network security, operating nodes and infrastructure, implementing data indexers, involving governance, and a signer/backup for multi-sig groups. I am committed to leveraging this diverse background to contribute effectively to the Treasury subDAO.

Contributions to Web3 (list, max 5 elements):

  • Contributed network security of multiple protocols
  • Managed web3 infrastructure
  • Developed data indexer of blockchain across cosmos and CosmosSDK-based chains
  • Contributed open-source software

Contributions to the dYdX protocol or DAO (list, max 5 elements):

  • Contributed network security since genesis
  • Contributed to improving the trading experience on the dYdX protocol
  • Participated in developing tools/services for the dYdX protocol
  • Supported governance, proposed a software upgrade proposal

Previous experience with operating Multi-sigs (list and brief explanation of each):

  • Drop Admin Multi-sig
  • Liquid Finance Multi-sig
  • Noble Maintenance Multi-sig
  • One-time Multi-sigs/technical assist across CosmosSDK-based chains

Conflict of interest (if any):

  • While I do not anticipate any conflicts of interest arising from the activities of the Treasury subDAO, I will commit to addressing any potential conflicts that may emerge in a transparent and equitable manner.
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[quote=“karpatkey, post:1, topic:3076”]
DAO-recognised name: jamiedao

Country of residence & Timezone: Dubai, UAE (UTC - 4)

Affiliations: Celestia

Occupation: CFO at Celestia Foundation

Motivation for applying (max 3 sentences):

  • continue to support dYdX Protocol, protecting and securing sustainable ecosystem growth in all market conditions
  • share my expertise and experience in running financial operations and managing web3 treasuries in my former role as the Head of Finance at dYdX Foundation (DF) and at Celestia
  • leverage my CFA and ACCA background to ensure and promote best practices around risk management and asset diversification

Contributions to Web3 (list, max 5 elements):

  • built and ran back-end functions and processes at DF
  • involved in DF’s staking delegation program, dYdX Chain migration and fundraise
  • managed native token and FIAT treasuries at dYdX and Celestia

Contributions to the dYdX protocol or DAO (list, max 5 elements): see above

Previous experience with operating Multi-sigs (list and brief explanation of each):

  • DF (signer)
  • CF (manager)
  • List item

Conflict of interest (if any): None to note.

I am applying in my individual capacity and not in any capacity on behalf of or representing the Celestia Foundation.

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Several big guns and community leaders are volunteering their time here.
Excellent! :trophy: :handshake:

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The application window is now closed.

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Thank you to all applicants. We’re glad to say the quality of applications received was very high.

Selection criteria

Selected Community Signers

The 3 selected Community Signers are:

Incorporation of the dYdX Treasury subDAO Foundation

karpatkey engaged with Harneys to incorporate the dedicated Treasury subDAO Foundation. As part of their role, they will also perform KYC on the selected Community Signers.

The next step is for the selected Community Signers to be onboarded as directors within the dYdX Treasury subDAO Foundation and signers in the multi-signature wallet.

The three selected Community Signers should join their dedicated telegram group (see below) to coordinate onboarding:

@Kam - Telegram: Join Group Chat
@florentgatin - Telegram: Join Group Chat
@Carameleon - Telegram: Join Group Chat

If we do not receive a communication from the Community Signers within 48 hours, we will assume they dropped out and select a new Community Signer among the applicants.

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