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base(d) anti-rug technology
the Tally newsletter, issue 109
welcome back to the Tally newsletter, your weekly source for DAO governance insights. i'm coolhorsegirl and i’m so happy to be here. 🟣
Coinbase’s L2 Base has launched and is live on Tally. one big takeaway: memecoins should become DAOs. i’ll let you read the connection between those two below.
Gauntlet has some recommendations for Compound, Gitcoin is onchaining an already-passed-offchain proposal, Nouns is considering a public goods move at ETH singapore. let’s talk about it 👇
🤿 deep dive: base(d)anti-rug technology
welcome to onchain summer. Base is LIVE and Base is LIVE on Tally!
reminder: Base is an L2 incubated within Coinbase and built on the OP stack explicitly aimed at bringing the next billion users onchain. Base offers devs access to the EVM environment at reduced costs and introduces advanced Ethereum features. so far, so good, $-wise: the data speaks for itself. since launch on august 9, over $135m has been bridged to Base!
we’ve talked a lot about the tradeoffs between centralization and decentralization. it’s also an effort to decentralize Coinbase while using the partnership to get the best of both worlds—it ensures technology remains accessible to all, while its integration with Coinbase provides dapps easy access to a vast user base and products.
however, it's not all smooth sailing. we’re talking BALD (sorry, brian armstrong), a memecoin/rug that was one of Base’s earliest projects to take off. after its developer removed 1,034 ether in liquidity (equivalent to about $1.9m), the coin experienced an 85% drop. brutal. (near) constant rugs, exemplified by the above, is the one of biggest problem Base—and other L2s in their infancy—faces.
we’ve joked internally that Tally is anti-rug technology, but it’s true, really. by enabling onchain decision-making, Tally ensures that tokenholders have governance rights. If the developer of BALD had used Tally, the 2-sided-liquidity move would have been prevented because tokenholders would have had the authority to stop such actions. next time, maybe.
rug prevention—just another reason why we DAO.
⌛️ onchain proposals
onchain DAOs are decentralized autonomous organizations that operate entirely on the blockchain, using smart contracts and other blockchain-based technologies for its operations and decision-making processes. Tally believes that true DAOs operate onchain.
summary: to stimulate growth, Gauntlet proposes updating the IR borrow curve, liquidation bonus, and rewards for the protocol. these adjustments aim to increase capital efficiency and TVL growth by incentivizing higher utilization and more supply.
voting ends: august 19
summary: just an onchain proposal that was passed several months ago on Snapshot to fund governance work during S1!
voting ends: august 17
voting ends: august 17
summary: 27.6k USDC to (1) retroactively support public goods, (2) offer a hackathon bounty of 5k USDC, (3) buy wearable noggles for staff, and (4) gamify the swag distribution process with a Nouns questionnaire, and (5) support Nouns running club.
voting ends: august 18
summary: 16.504 ETH for 12 more episodes of the Lil Nouns show on twitter spaces, so far with 13,101 listeners across 36 shows.
voting ends: august 17
📝 what we’re reading & listening to
📄 “Dodging The Tyranny of Structurelessness in DAOs” by Rika Goldberg
continuing the conversation on the delicate balance between decentralization and centralization, Rika contends that DAOs without a formal and deliberate governance structure fail because a covert structure takes hold that results in elites. we don’t want that, do we?
🎥 “Endgame: Proof of Governance” from Jon Charbonneau
Charbonneau argues that governance is the best way for a rollup to pick its sequencers. he points out that the status quo is kinda weird: why do L2s pick who validates users’ stakes, not the users themselves? this one’s relevance isn’t going away anytime soon.
for the more technical out there, Safe released a whitepaper pitching a standard for upgrading EOAs (regular private key accounts/externally owned accounts) to smart accounts.
💫 DAO talk: the Base race || DT weekly ep. 50
🤭 meme of the week
~ coolhorsegirl 🐴
p.s.- back in my favorite city for the rest of august, edinburgh! not infrequently do i run into people from my family clan around here. in august, there is a comedy festival that doubles the population of the city. here’s my favorite pinpoint in the world, this hill right under the castle.