BLUR is an ERC-20 token that governs key parameters of the Blur marketplace protocol and lending protocol (Blend). These parameters control the protocols' value accrual and distribution. Voting is proportional to the amount of BLUR tokens a user owns or is delegated. In order to register their voting balance, a user must delegate their token balance to an address (either their own or someone else's).
Most of the decisions made by the Blur DAO have on-chain results. To make sure that all decisions are well-informed, as well as properly communicated with the wider community, the governance process in Blur consists of multiple steps.
There are three main categories a BIP (Blur Improvement Proposal) can fall under: Core, Process, or Informational.
Proposals for making a change to a process or implementation. Examples include procedures, guidelines, changes to the decision-making process, and changes to the tools or environment of the Blur DAO.
Proposals for general guidelines or information for the community.
All ideas and proposals are initially published on the Research forum. The point of this is to receive community feedback. All the proposals go through a phase of improvements and objections. If the proposal is welcomed & feedback is incorporated, it can move on to the next step.
Discussion Timeframe: Minimum 7 days
The second phase is conducted through gas-less Snapshot voting. Community members who are delegated a minimum number of tokens are able to submit proposals that will be subject to a 14-day voting period. After the 14 days, if the proposal receives support from a majority of the participating votes, with a minimum of 30M BLUR yes votes, it can proceed to an on-chain execution vote.
Proposal Threshold: 100,000 BLUR
Voting Delay: 2 days
Voting Period: 14 days
Quorum: 30M BLUR
The next phase involves creating an on-chain proposal with code to be executed. Tally can be used as an interface to interact with the governance contract. On-chain proposals must be made by a member with the minimum number of tokens delegated, and must be based on a successful phase two vote. Once proposed, votes will last 14 days. If the proposal receives majority support, with a minimum of 120M BLUR yes votes, any member can queue the execution of the proposal, and after a 2-day execution delay, can execute the proposal.
Proposal Threshold: 30M BLUR
Voting Delay: 1 block
Voting Period: 14 days
Quorum: 120M BLUR
Execution Delay: 2 days
Community governance has the power to control the Blur protocols' value accrual and distribution
- Set marketplace protocol fee rate after 180 days (up to 2.5%)
- Set lending protocol fee rate for lenders and borrowers after 180 days
- Issue treasury grants
Governance can also perform these on-chain functions
- Set governor timelock
- Set timelock delay
- Set quorum minimum
- Cancel timelock executions
- Set proposal threshold
- Set voting period
- Set voting delay
To streamline certain operations, some of the activities of the DAO are governed by committees. The committees will work to progressively transfer their functions to governance over time.
The Safety Committee ensures that BIPs follow the governance process outlined above. The Safety Committee will prevent proposals that haven't followed the proper process from passing.
The Marketplace Committee facilitates upgrades to the Blur marketplace contracts, aggregator contracts, and lending contracts. The Marketplace Committee executes policy decisions around highly dynamic subjects, such as royalties.
The Incentive Committee is tasked with incentive management for Blur users. The Incentive Committee can utilize up to 10% of the Genesis Supply for incentive programs (300M BLUR). The Incentive Committee may also loan out a portion of the budget to provide market liquidity for BLUR (currently: 21.9M BLUR). If all of the incentive budget is utilized, more can be allocated to the Incentive Committee via governance.