The Decentralization Journey

Transcript

foreign let's try that again bonjour everyone this is Paris and the future of France thank you for inviting me my name is Mark from the other Chinese native the ACI and we are the Main Ave Dao delegate platform and our voice is the votes of hundreds of people within the other community and we are also very proud to be the one of the most active avedo service provider in 2023 one third of every other Improvement proposal or AIP has been signed by the average

initiative if you want to support what we did and what we will do together in the future for the future of France you can do so by delegating to avechang.it today our main thesis will be quite simple and it always done to Dao's should be seen with a mindset that those are not meant to be companies but those are meant to be States and what we're gonna see to uh what we're gonna say today is based on our experience or personal experience and also the experience of the average Chinese yet even the other protocol for the past three years as member from day one of the away protocol from the

Genesis team and also as now the uh main delegate platform of elected by hundreds of people in the community some people in the community are saying and I think it's completely acceptable and a good Vision to do things that governance should be completely skipped protocol should have no governance at all and be immutable from day one but if you want to do that as a builder you have to cross a very thick and complex World cross and that wall is called is my protocol perfect and future proof because if that is not the case you will

need to evolve through soft work hard fork or new version of the protocol that will have some consequence to that what we're gonna do today together is from our experience with the average initiative and what we did at the other protocol let's see the do and don'ts of the different stage of this healthy maturity decenteration path stage one is where everything starts is one smart girl or one smart guy in the audience in this room that's been a great week listening to Great talks and say to

himself who herself well I have a good idea that can improve the ecosystem and that person will jump in a telegram group in a Discord server or in a co-working space and start building open that ID this is not the time where you should ask the world internet if the button should be blue or if the button should be read on the website it doesn't make sense because the early days require a flexibility to find product Market fit to prove to the world that your ID has some added value in the ecosystem so to have rapid development in interaction it makes sense that you don't start at this completely

decentralized project in terms of decision making but obviously there's risk if you you stay at this stage the stage one if the Port Jack has a transferable token with so much power in so few hands it's much easier to work pull and we've seen a few experience of that during the last cycle and also another thing and let's be completely clear here if it moves like a company if it talks like a company if it smells like a company well don't be shocked that some people and some regulator will consider it as a company so what you can do and in the ecosystem we have a good example of what I've been trying in the like cycle at least in our

opinion is that you can avoid at this stage to have a token or if you want a token you can do it in a non-transferable way so in that way you can onboard your community and start to build the foundation of your governance and start to distribute the voting power into more and more ends in a controller way and we take the example of Morpho for that Morpho is a relatively new protocol that is around one years old and what they decide they raise money from investors but they also decide to distribute their governance power to their users through a liquidity mining program but if you go to on uniswap you

cannot buy more photoken but if you are a user you can vote and those who are talking have 100 voting power so it's a good way to onboard and to start to decentralize until you find Project Market fit what you should not do at this stage is basically stay there for years and pretend you are decentralized because let's face it no one at stage one is D5 you are dino decentralizing name money and if you pretend to be decentralized that decentralization theater and we are not here to point fingers and to uh to point out a few names I think you have your own idea of who can fit the description but what we all know is that

there's been many the Clone in this circus state two is when your ID start to gain traction and use that to other community and there's more and more people involved in your protocol this is the state where that is meant to build the foundation of your Dao that's where you start to have delegates that participate in your governance and that's where most people are right now that's also where you define your governance framework and guideline to Define all people can participate in your political and add value and when you reach some early project Market fit and you have some Revenue in

your protocol that's when the first service provider start to be hired in the the consequence to have a slow deletion of the Genesis team through the work and the added value of external service provider so this is the current network of service provider in the avedao and the one objective of that is to say if any of those guys and the ACI include stop working immediately today forever will the protocol still work fine and on Ave the answer is yes and that should be the goal for every D5 protocol what you should but what is important at this stage is to say is to set a culture

in your Dao because all you define your rules or you uh organize your decentralized autonomous organization will Define what kind of code you attract and obviously I'm not here to throw shed even if it's a part of the game uh obviously we are grateful of all the contribution of Mecca Dao and I'm a user of die but let's read together mipyo 101 at least a part of it which Define which is like to make an improvement proposal that Define the governance framework and let's try that together all AVC members then vote to support one or two AVC with the naming right and infrastructure narrator

yeah let's not try to do that because if your governance guideline are basically written by lawyers on LSD that's the kind of crowd you will attract in your Dao what you want to do is to write simple to follow and inclusive guidelines and framework that will allow anybody that spend two hours in your governance frame and to understand or you do a prototype of a governance to add value to your protocol you want to fight gatekeeping and be welcoming even if someone is not the best developer even if someone is not use and spend the first five years

in D5 if that person has a good idea and can add value they should have a pathway to add value to your protocol and with the ACI we contributed to that with the Skyward program because we have the firm belief that some people in the world have good ideas and some people in the world can write good code but sometimes you are not both at the same time so what you can do on the avedao is that if you have a good idea and you pass the first step of the governance of Avi which is the temperature check we will convert your ID your English into code and proposal payload that can be

implemented by the protocol and we will do that for free for everyone and without any kind of limitation and we can do that because it's an effort in the Avail with the other service provider to make the dough as inclusive and as possible and we want to talk about the work of bgd labs and especially the RV proposal repo that is an example in our view to make code AS accessible as possible to third-party contributors the last thing is that delegate delegate platform it's an actual work and actual work deserves Fair composition and it's good to have if you

want to attract people that are focused on adding value to your proper protocol what you want is to give them a fair composition so part of the project Market fit of your protocol and the revenue of the protocol should be redirected to those delegates that want to contribute to to the protocol and in order to do that the ACI launched the orbit program that started to uh fairly compensate delegate platforms even if they are competitor to us in the avidau in order to prepare the grants to what maybe one day a program that funds directly that is directly

funded by the protocol and if you start to do a to have that you start to create the grounds and the culture of what can be a mature down and the material is akin to what I will call the representative liquid democracy what you want in your Dao is elected delegates people that has been chosen by the community and not nominated by the few you don't want VC puppets in your Dao obviously VC will have some voting power in your Dao but you want people that represent the voice of hundreds of people and at the average initiative we are humbled to have almost 350

delegators to our address because we believe that elected delegates will be reward or punished based on results and not based only on obedience and second thing is that your protocol should reach the maturity if you want to be a material to have positive cash flow so what you earn should be more than what you spend with your service provider and your the fair composition delegate program because when you do that you have the safeness and the sunness and the real resilience to make sure that you are building in the future and now what I will say right now may

seem counterintuitive because I just told you that we should involve people in governance and things like that and now I will tell you we should vote less so that seems a bit weird but what is really important for me to transmit to you is that you should vote on proposals that have governance added value not on the color of the blue or red button of their website but things that actually set the direction of the win for the protocol and of actual added value and on Navi we are currently in this process when you look at the president for the past three year proposal we had on the

avedao you can clearly see stage one and stage two stage one we don't have that much proposal and we basically agree as a community with the work of the average Genesis team and stage two we start to vote on frame work this side involved the community but the future for the avidau and the future of a mature protocol will be to have less proposal but more added value and those proposals will be on stewards for example that we implemented recently are to Define to work more on automation of risk parameters and this kind of stuff so to conclude I think protocols should

choose the right path because we believe that those are not meant to be companies those are meant to be States those don't need CEOs service providers can have CEOs and they will add value but thou should have multiple leaders multiple service provider and redundancy between them four resilience and decentralization and those should be controlled by delegates but they are not bar members they are political parties representing the voice of the community and those political party a job is to appoint service provider and vote on project and be sure to be the check and

balance things to Define what has value to the Dao and the protocol and if you want to build a company well good news legit company can be built around those as service provider but under the control of the governance of the protocol obviously that was a huge topic today and we only had 15 minutes so if you want to continue the conversation you can scan this another link to my socials and also we wrote three articles on the topic and they are on the link thank you very much for your time and it's always a pleasure to be invited at the HCC and let's work together for the future of France

[Applause] [Applause] thank you foreign