[SIP-20] Add oSnap to RareDAO

Governance Proposals
1

Title

Add oSnap to RareDAO

Summary

We propose adding oSnap, a governance tool developed by UMA, to the SuperRare Safe to allow for automatic onchain execution after successful Snapshot votes.

Abstract

Adding oSnap streamlines the execution of governance decisions, brings a new layer of efficiency and reliability to Rare DAO. This requires minimal effort and no disruption to existing DAO governance processes. UMA even covers the onchain execution costs for every oSnap proposal.

oSnap secures over $800M for treasuries including CoW Protocol, Across, Connext and Shapeshift. A dashboard of all oSnap users can be viewed here. oSnap was built by UMA, an experienced leader in optimistic verification. UMA’s optimistic oracle currently secures $1.5B of TVS across bridges, prediction markets and governance tools.

Motivation

Adding oSnap decentralizes the execution and empowers RARE holders by enabling tokenholders to govern how the SuperRare Safe funds are allocated. Due to SuperRare funds being in a Safe and SuperRare having an active Snapshot space, adding oSnap requires minimal effort and no disruption to existing DAO governance systems.

Specification

oSnap is a module that is added to a Safe with rules on how to evaluate a Snapshot proposal. oSnap Safe app lets you add oSnap to your Snapshot space and Safe in a few minutes with no developer time required. A video demonstration of the oSnap Safe App can be viewed here.

Once enabled, Snapshot proposals related to the distribution of funds from SuperRare can include transaction data with the proposal. After a successful Snapshot vote, the transaction is put onchain and verified by UMA’s optimistic oracle before being executed by the Safe. There will be no changes to the SuperRare treasury or proposals for treasury distributions or social votes relating to governance, removing a director, etc.

The updated Snapshot flow for proposals that include grant distributions would be:

  • An oSnap enabled Snapshot proposal is created. This process is the same as a normal Snapshot proposal with the addition of transaction data that will be verified and executed if the proposal passes. The Snapshot transaction builder is specifically designed to make it easy to create and verify transaction data for token transfers.
  • RARE holders vote on the proposal like any other SuperRare Snapshot proposal
  • If RARE holders approve the proposal by vote, any address can post a bond (2 WETH) for a challenge period (1 to 3 days) and propose to execute the transactions onchain. UMA has implemented a bot that validates proposals (vote passed, meets min voting period/quorum) and posts the bond for DAOs along with covering gas costs for execution (there are no fees to use oSnap).
  • If no dispute arises about the proposal’s accuracy during the challenge period, the transactions can then be executed.
  • In case of a dispute, the proposal is not executed. UMA token holders vote to resolve the dispute, with the correct party rewarded from the opposing party’s bond. This bonding and dispute mechanism punishes incorrect proposers and disputers and incentivizes honest disputes. Any proposal that was incorrectly disputed can be re-proposed to the oracle for execution without requiring revoting. It is important to note, the dispute resolution decided by UMA token holder votes are not deciding if the transactions can be executed or not, only the bond allocation between the proposer and disputer.

Here are examples of where oSnap would have streamlined the process:

UMA created and maintains oSnap as a public good with no implementation or usage fees because we believe decentralized governance tools are critical to the entire Web3 ecosystem. Since UMA is already running robust monitoring across all of our optimistic oracle integrations and can recycle the bonds posted, the additional costs associated with these services are negligible and it is sustainable to continue providing this service for DAOs. If any changes were to be made in the future, we are committed to having existing DAOs not face any changes (aka be “grandfathered in”).

Benefits

The benefits of SuperRare adopting oSnap are:

  • oSnap enables RARE voting to govern how SuperRare funds are allocated and remove the reliance on the Safe multi-sig signers.
  • Transaction payloads included in proposals that are approved by voters are trustlessly and permissionlessly executed which increases transparency and decentralization.
  • Automatic transaction execution by UMA bots is faster than waiting for multi-sig signers along with the bot paying the gas costs for execution. The gas cost of the transaction execution is paid for by these bots instead of the multi-sig signers.
  • The UMA team is continuously making frontend improvements as per user feedback and improving open source monitoring infrastructure for oSnap.

UMA has also focused significant resources on monitoring efforts:

  • The same bot that proposes and executes transactions also automatically disputes inaccurate proposals if the following criteria are not met:
    • The proposed onchain transactions match the transactions that were approved in the Snapshot proposal
    • The Snapshot proposal passed with the minimum parameters specified (majority in favor, meets minimum voting period and quorum)
    • The proposal follows the strategy specified in the Snapshot space.
  • Proposals are included in the UMA Oracle UI (https://oracle.uma.xyz/) which is the same interface used by disputers verifying and disputing for other third-party integrations (Polymarket, Sherlock, Cozy, and other oSnap integrations).
  • UMA sponsors a verification program, that pays UMA community members to verify all optimistic oracle assertions So when any transactions are proposed through oSnap, a Discord ticket is automatically created and an experienced verifier from the UMA community completes a multi-step verification process that focuses on areas such as the transaction payload matching the intent of the proposal, verifies transactions do not include interactions with malicious contracts, etc.

Drawbacks

While oSnap has been audited by Open Zeppelin, as with any system, there may be unforeseen vulnerabilities.

Outcome

A successful implementation of oSnap can be tracked by the reduced effort of multisig signers required to execute payloads on relevant proposals that require transaction payloads.

Vote

For - Formalizes the community is “for” adding oSnap to the SuperRare Safe.
Against - Formalizes the community is “against” adding oSnap to the SuperRare Safe.

1 Like
2

Adding oSnap to SuperRare DAO is a great idea. It will make the DAO more decentralized and automate processes. oSnap is also free so this seems like a no brainer. I see a lot of upsides with no downsides.

As a member of SuperRare DAO’s Council, I support this!

2 Likes
3

This proposal is very exciting for me as the Operator of RareDAO Foundation and as one of the people helping to facilitate DAO governance.

I believe that including the oSnap module on the council multi-sig will be a great way for us to begin experimenting with executable governance proposals and could result in significant efficiency, transparency, and decentralization gains depending on the contents of each proposal.

oSnap is a great tool because it creates a gradient between full offchain voting with trusted execution, and full onchain voting with entirely trustless execution. Adoption of oSnap would make a key milestone in the DAO’s progressive decentralization and continued adoption of best in class governance technology.

1 Like
4

Seems like a great addition to our suite of tools to support RareDAO’s progressive decentralisation.

Also great to see that the fees incurred with the tool’s implementation would be minimal.

Might be interesting to see a demo before we press ahead just to have a clear sense of what this looks like in real time.

1 Like
5

Thanks for the support. We will coordinate to get this pushed to a snapshot vote in the next couple of days.

Here is a demo walkthrough in our docs!