Following todays governance call, I wanted to follow through by kicking off a conversation about what the dapp treasury is, its context, how it can be used, and direction towards its future management. My goal through this discussion is to lead to a signaling proposal ratifying whatever we jointly come up with.
To prevent gamification of ARCH rewards, the protocol is meant to ensure that developers can not earn more in rewards than is spent on Gas. Since a fixed percentage (currently 25%) of inflation is reserved for developer remuneration, should there not be enough Gas spent, the additional inflation has to go somewhere. Thus gave birth to the Dapp Treasury, first mentioned in the economic paper at the bottom of page 12, https://archway.io/assets/archway-economics.pdf.
With the economics paper primarily referencing a temporarily impossible to build out āideal modelā, Archway is unable to track and pay out remuneration for the inflation part of dev rewards in real time, thus to maintain safety, pays the minimum possible payment which assumes 100% of blockspace is full, or 300M gas/block. Since very little of the payments are actually given to the devs, almost all of the 25% of inflation reserved for developers has been accruing to the dapp treasury since mainnet launch July 3.
There is currently no direct precedent on how to use these funds. Many have assumed that rewards would be disbursed retroactively until dynamic tracking is made possible, but this has not been clearly enumerated or ratified. Additionally, management of the dapp treasury has not been clearly enumerated. As a module wallet it is not technically handled by governance in the way the community pool is. Should it be governed by the community? Should it be governed by a separate DAO that has a higher representation by dapps? I honestly donāt have a very strong opinion in either direction currently, as both, and other solutions all have unique pros and cons, hence the need for this discussion.
I DO believe that whatever does go forward should be ratified on governance through a signaling proposal. I DO believe that current applications should receive retroactive remuneration from launch date, and in continuity until dynamic processing is live, and intend to enumerate this in a signaling proposal following this discussion. I also believe that the overall dapp treasury doesnāt solely belong to current applications, but the existence of it both proves and emphasizes that the current applications are falling short of the blockspace sales inflection point denoted as the āOptimal Fill Percentageā, and as such, much of these funds should go towards grants, hackathons, and acquisition of more applications and developers that should lead to further the future sales of blockspace.
Please respond with feedback on my intended proposal, but also your philosophical vision and ethos for what the dapp treasury should be, how it should be handled and managed, etc.