Introducing Silo’s On-Chain Governance
Updated: Feb 9, 2022
We’ve recently set up our on-chain governance application on Tally. This post explains the Silo on-chain governance process and how you can participate in it.
Silo uses on-chain governance to enable token holders to make decisions and implement them. This is different from Snapshot that only allows for soft voting (e.g. gauging how the community feels about a certain topic) and doesn’t implement changes to the DAO or the protocol.
The Silo DAO uses OpenZeppelin Governor for governance. It is a governance protocol — similar to the one Compound uses — where delegates vote on active proposals to make changes to the Silo DAO and Silo protocol.
The word delegate can be confusing so let’s clarify what a delegate is.
Delegates are token holders that have completed a one-time setup process. Once you become a delegate, you can vote on active proposals, and create proposals if you have enough voting power. If you choose not to directly vote on proposals, you can pass your voting power on to a delegate as we will see later in this post.
Silo uses the Tally governance application to manage the governance process. Through Tally, you can set up your wallet to become a delegate, create on-chain proposals, vote on active proposals, discover delegates in the community, and delegate your voting power to a community member.
As of today, delegates have complete control over Silo DAO’s treasury, i.e. control the funds in the treasury. Delegates can also change Silo governance parameters such as quorum, proposal threshold, voting length, etc.
The core contributors team will progressively hand over more functions to governance, such as controlling Silos’ collateral factors, managing protocol’s bridge assets, controlling token emissions, and more.
If you wish to have a say in governance, you need to delegate your vote to self or someone in the community.
Here is how you can do it.
Becoming a delegate
You can become a delegate in 4 easy steps:
(1) Visit Silo governance page and connect your wallet.
(2) Click on "Delegate vote".
(3) Choose to delegate to self.
By delegating to self, you retain your voting power. Next time there is an active proposal, you can choose to vote in any way you choose.
Click on “Delegate to self”.
(4) Confirm the transaction in your wallet.
Transaction will cost gas.
Delegating to someone else
You might prefer to trust a community member with their voting power. That’s either because you don’t want to incur a transaction fee every time you vote, or you don’t have strong opinions about proposals and choose to defer voting.
When you delegate your voting power to someone else, you are voting by a proxy — They will vote on your behalf.
Two facts to keep in mind:
When you delegate, your SILO tokens stay in your wallet. You are only delegating your voting power.
You can always change the delegate or delegate back to yourself.
How to delegate to others?
(1) Decide on the delegate that will represent you.
There are two ways to discover delegates:
Head to our #delegates discord channel to discover delegates and chat with them.
Use Tally application to discover delegates with their voting power and address.
(2) Visit Silo governance page and connect your wallet.
(3) Click on “Delegate vote”.
(4) Choose “Delegate to an address, enter a wallet address and proceed.
(5) Confirm the transaction in your wallet.
Transaction will cost gas.
Voting on future proposals
Now you are a delegate, you can participate in governance. It’s important to note that you are voting power will only be tallied on proposals that have been created after you became a delegate. This means if you are reading this post on a date later than January 30, 2022, you will not be able to vote on SIIP-03 because the proposal was created on January 30, 2022.