Synthetix protocolDAO Phase 1 & 2

[kaiynne]

ProtocolDAO Phase Zero is now implemented with the transition from our EOA owner to a gnosis safe multisig. The safe is now the nominated owner of all mainnet contracts.

There are three SIPs required for this transition planned for the upcoming Hadar release:

Delegated Migrator - ProtocolDAO1 System pause functionality Decentralised circuit breaker

The next phase of the ProtocolDAO will be implemented in the Hadar release later this month. The delegated migrator contract will take ownership of the mainnet contracts. The gnosis safe will own the delegated migrator. Any of the signers will be able to publish a new configuration to the delegated migrator contract which can be reviewed by the community to ensure that it aligns with the proposed changes in the SIPs included in that release. There will be a grace period before the changes can be implemented. Once the grace period expires the upgrade can proceed. This issue lays out a proposed spec for the control mechanisms for future contract upgrades in phase one and phase two. Phase two will introduce additional mechanisms to pass governance control onto the community to ensure the protocol improvements have reached sufficient consensus.

Specification:

• All synthetix contracts have an owner
  • The contract pattern is logic, state and proxy
  • The owner can rewire logic contracts to the state and proxies for upgrades
• New delegated migrator contract to take ownership of all contracts
  • Delegated migrator has an owner
    • is owned by ProtocolDAO
  • Delegated migrator can receive a proposed tx to rewire any contract
    • Rewire proposal is public function (maybe private initially)
• ProtocolDAO owns delegated migrator
  • Member number is configurable
    • Modifiable by token vote (phase 2)
    • Quorum to be specified (phase 2)
  • Voting threshold is configurable
    • Modifiable by token vote (phase 2)
    • Quorum to be specified (phase 2)
  • After rewire proposal is submitted members vote to approve
    • Configurable grace period (initially 48 hours)
    • Modifiable after grace period
  • Token holders can veto proposal during grace period with x% of tokens voting no
    • Modifiable by token vote (phase 2)
    • Quorum to be specified (phase 2)
  • Delegated migrator can be upgraded
    • Requires token vote for approval (phase 2)
• Any protocolDAO member can call pause
  • Delegated migrator has the ability to pause all contracts
  • Single member pause is 1 hour (configurable)
  • m/n required for indefinite pause
  • Token holders can vote to unpause with x% of tokens voting (phase 2)

We are investigating using an Aragon DAO in place of the gnosis safe for phase one, but most likely this will be implemented in phase two, using Aragon will enable the functionality above and potential future functionality to be introduced in later upgrades.