Proposal: Grant to accelerate SHU Staking for Shutter DAO 0x36

Shutter DAO DAO Proposals
1

Simple Summary and Motivation

Following the positive reception of the proposal for developing a Keyper Incentive Mechanism and (delegated) Staking, and its subsequent approval on Snapshot on March 10, a Request for Proposal (RfP) was issued on March 14. Despite this, Shutter DAO 0x36 has yet to find a suitable contributor. Amidst discussions on aggressive SHU distribution and vesting on Discord and the Shutter DAO Forum, I propose a grant to expedite the staking mechanism’s technical development, setting a deadline for the existing RfP (for May 10) and establish an appropriate economic framework, aiming to enhance token utility, alleviate selling pressure, and foster community trust.

Goals

  • Accelerate Staking Mechanism Development: Prioritize the completion of a Staking Mechanism to support Shutter DAO 0x36’s long-term sustainability.
  • Encourage Keyper Participation: Incentivize Keypers through SHU token staking, reinforcing their pivotal role in the network.
  • Enable Community Support: Facilitate SHU token holder support for Keypers, bolstering network security and decentralization.
  • Reward Long-Term Commitment: Offer rewards for both Keypers and SHU token holders, promoting network support over time.
  • Counter Selling-Pressure: Implement staking to mitigate the impact of scheduled token unlocks.

Background on Contribution

The scope of this contribution encompasses a comprehensive approach to accelerating the development and implementation of the SHU Staking Mechanism for Shutter DAO 0x36. As the coordinator, I will oversee a series of critical tasks that span from technical development to economic framework establishment, ensuring a seamless and efficient progression towards our goals. The following outlines our focused areas and planned timeline for achieving these objectives.

Contribution Scope

  • Technical Development Coordination: Act as liaison for external service providers, ensuring effective collaboration and communication.
  • Proposal Evaluation: Guide the DAO in reviewing potential grant recipients/contributors, based on established criteria and due diligence.
  • Project Coordination: Manage project scope, timelines, and milestones, ensuring successful initiative implementation.
  • Smart Contract Auditing Coordination: Initiate audits for the developed staking mechanism by engaging with reputable auditors.
  • Economic Framework Development/Coordination: Collaborate on staking economic concepts, including reward structures and token allocations.

Outputs and Timeline

Proposal Coordination for Technical Development (Starting Mid-April):

  • Liaise with Sutter core developers/team regarding existing work on this topic.
  • Encourage the submission of proposals from potential contributors, leading to a community vote for selection. Set a deadline fo May 10 for the existing RFP and communicate it to potential contributors to submit their proposals.
  • Oversee the evaluation of these proposals and organize a vote to choose the most suitable contributor.
  • Serve as the liaison between the chosen contributor and the DAO throughout the development phase, ensuring progress is monitored and steering the project as needed. Provide bi-weekly updates to the core team for community dissemination.

Audit Coordination (Starting Mid-May):

  • Manage outreach to potential auditors for the technical contribution.
  • Lead the evaluation of potential auditors together with Shutter DAO 0x36, possibly initiating a Request for Proposal (RfP) and/or facilitating a community vote.
  • Oversee the execution of the audit process for the technical contribution, ensuring thoroughness and compliance.

Economic Concept Development/Coordination (Starting Mid-April; In Parallel):

  • Align on potential economic concepts with key stakeholders within Shutter DAO 0x36.
  • Present potential economic concepts to Shutter DAO 0x36 and manage the evaluation and discussion process.
  • Facilitate a community vote to select the most suitable economic concept for Shutter DAO 0x36.
  • Coordinate the implementation of the chosen economic concept by the technical contributor, ensuring seamless integration and alignment with the project’s goals.

Grant Request for Contribution and Background on Contributor

Request: A grant of 5,000 USDC and 50,000 SHU to accelerate SHU Staking development, payable to jul1an from the DAO’s treasury.

Contributor: jul1an, a dedicated Shutter DAO 0x36 supporter and active Keyper, has contributed significantly to the DAO’s proposals and development. With a background in Capital Markets and Business Development, jul1an brings valuable expertise to this initiative.

Implementation and Timeline

  • Proposal Discussion: Engage with the Shutter DAO 0x36 community for feedback until April 15.
  • Voting and Funding: Conduct a vote on the grant proposal via Fractal, with funds disbursed by April 19.
  • Contribution Commencement: Begin the contribution phase as soon as possible in accordance with the mentioned timeline above.

Voting Platform

  • Fractal (on-chain transfers will be executed if the proposal is approved)

Vote

Members of Shutter DAO 0x36 are invited to vote on this proposal using the following options:

  • Vote “YES”: To approve the grant to accelerate SHU Staking for Shutter DAO 0x36 and transfer the grant to jul1an
  • Vote “NO”: To not approve the grant to accelerate SHU Staking for Shutter DAO 0x36 and transfer the grant to jul1an
  • Vote “Abstain”
4 Likes
2

Would like to see a bit more background on Jul1an’s experience, before voting.

3 Likes
3

Thanks for the feedback. I can share a bit more about my background and experience:

Professional Background: I worked for six years in consulting for major banks and financial service infrastructure providers (e.g., clearing houses), across their financial markets, treasury, and risk management divisions, advising them on strategic, operational, and quantitative topics. My focus was on strategic/operational issues, such as optimizing processes (e.g., for IRD clearing) and distribution strategies, as well as quantitative topics like optimizing ALM or Market Risk Management. Subsequently, I transitioned from consulting to tech five years ago and joined a major tech company. There, I have led business development efforts across EMEA and APAC in the financial and professional services sectors.

Web3 Background: I have supported Shutter Network since its inception and maintained a good relationship with the core team. I also started to run one of the first Keyper Nodes and have, since the DAO launched, contributed to its advancement. For example, I have developed and initiated the following proposals and discussions:

Moreover, I have gained experience in the Ethereum ecosystem over the past 5 years through investing, attending conferences (e.g. ETH DevConnect/MEV Day) and contributing to the network, e.g., by running validator nodes. Most importantly, I am passionate about distributed technologies and believe into Shutter Network’s mission to prevent front-running and malicious MEV by using threshold encryption.

Please let me know if you would like to discuss my background and experience in more detail. I am happy to consider a brief call.

2 Likes
4

I am adding the assoicated transactions to this proposal:

Transaction 1 - Transfer 5,000 USDC to jul1an

Target Address: 0xA0b86991c6218b36c1d19D4a2e9Eb0cE3606eB48 
Function Name: transfer 
Function Signature: address,uint256 
Parameters: 0x68B7294061C52e454A9062EA29C15BB4Ff80863c,5000000000 
ETH Value:

Transaction 2 - Transfer 50,000 SHU to jul1an

Target Address: 0xe485E2f1bab389C08721B291f6b59780feC83Fd7 
Function Name: transfer 
Function Signature: address,uint256 
Parameters: 0x68B7294061C52e454A9062EA29C15BB4Ff80863c,50000000000000000000000
ETH Value:
3 Likes
5

@jul1an, what are the concrete deliverables for this proposal? You will liaise with Sutter’s core developers/team to implement the proposal! You will not develop the contract by reading the proposal, right?

  • There is no method to ensure that you will deliver what is proposed. Are there any plans to mitigate this shortcoming?

You have given no more than 3 days for the community feedback! are you planning to update the Dao regularly on the developments, You have to scout for a team to build the staking mechanism without an approved budget, which might take longer due to a lack of applicants.

2 Likes