[ARFC] Gas Rebate for Recognized Delegates

Governance
1

Proposal updated on 2023-06-28

title: [ARFC] Gas Rebate for Recognized Delegates
author: @lbsblockchain, @MarcZeller Aave-Chan Initiative (ACI)
created: 2023-05-31

Abstract

This ARFC introduces a mechanism for reimbursing gas fees to recognized delegates who vote on-chain on Aave.

Motivation

As Ethereum gas fees continue to rise, the cost of on-chain governance for delegates has proportionally increased. This ARFC proposes a rebate system for these gas fees, aiming to incentivize active engagement and cultivate a more diverse voter base.

Rebating delegates for their participation offers several benefits:

  • Encourages more active engagement from the delegate community by eliminating the disincentive to vote, leading to better decision-making for Aave.
  • Fosters a more diverse voter base, including student organizations, by reducing the barrier to entry for voting. This creates a more open and collaborative delegate ecosystem, driving participation.
  • Helps retain top delegates to foster the growth of the Aave ecosystem. Aave should remain competitive with its peers (e.g., Maker) to attract and retain the best delegate talent. The fundamental cost of being an excellent Aave delegate should not result in a net cost to the delegate due to ever-increasing gas costs.
  • Can be achieved at a relatively low cost. We also propose measures to reduce the administrative burden for Aave.

Specification

Claiming Process

Every quarter, an ARFC will be proposed (with the current one being the first) to publish an AIP reimbursing gas fees spent by recognized delegates.

These gas fees are determined by an open-source script written by @JosepBove, which allows anyone to generate a JSON file of recognized delegates’ gas spending.

This script can be run and verified by any community member to approve the amounts distributed to recognized delegates.

Once a consensus has been reached on an ARFC, an appointed Governance Facilitator will submit an AIP to transfer aWETH to the delegate’s address. We initially propose that the Aave Chan Initiative serves as the Governance Facilitator.

Gas Rebate Token

We propose that the Gas Rebate Token be wETH.

Proposed reimboursement

here’s the output of the script for the previous quarter, covering AIP-165 until AIP-236 and Ethereum blocks from 16726166 until 17343620:

Name Address Gas Used
ACI 0x329c54289Ff5D6B7b7daE13592C6B1EDA1543eD4 0.95
ACI AIP deployer 0x3Cbded22F878aFC8d39dCD744d3Fe62086B76193 0.33
Flipside 0x62a43123FE71f9764f26554b3F5017627996816a 0.38
TokenLogic 0xA06c2e5BB33cd6718b08EC9335081Cbba62861f7 0.21
michigan 0x13BDaE8c5F0fC40231F0E6A4ad70196F59138548 0.21
LBS Blockchain 0xB83b3e9C8E3393889Afb272D354A7a3Bd1Fbcf5C 0.26
Wintermute 0xB933AEe47C438f22DE0747D57fc239FE37878Dd1 0.19
keyrock 0x1855f41B8A86e701E33199DE7C25d3e3830698ba 0.16
Stablelab 0xea172676E4105e92Cc52DBf45fD93b274eC96676 0.29

Disclaimer

This proposal is powered by Skyward.

Special Thanks

Special thanks to @JosepBove, a new contributor to the ACI, for developing the GasRebate Script. Here’s the link to the open-source script.

Copyright

Copyright and related rights waived via CC0.

9 Likes
2

Good initiative to incentivise voting amongst active and future participants.

1 Like
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Flipside has provided the ACI with the following query and analysis:

It outlines Recognized Delegates who have met the following criteria:

  • 5+ votes on chain
  • at least 80% participation in votes during this block range - 16726166 until 17343620
  • posted a ‘Delegate Platform’ and communicated votes

If you believe you have been missed, please reach out to me.

Additionally, if you are an active voter and want to get reimbursed for your gas costs – please become a Recognized Delegate by posting a platform and following the guidelines.

We’re eager to see more representation within the community.

2 Likes
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Thanks, @fig & Flipside for this mapping of recognized delegates.

Here’s the script output for these platforms

Name Address Gas Used
ACI 0x329c54289Ff5D6B7b7daE13592C6B1EDA1543eD4 0.946235717151594174
ACI AIP deployer 0x3Cbded22F878aFC8d39dCD744d3Fe62086B76193 0.321909356347125811
Flipside 0x62a43123FE71f9764f26554b3F5017627996816a 0.375385613889136811
TokenLogic 0xA06c2e5BB33cd6718b08EC9335081Cbba62861f7 0.201399118165187134
michigan 0x13BDaE8c5F0fC40231F0E6A4ad70196F59138548 0.207326406482432352
LBS Blockchain 0xB83b3e9C8E3393889Afb272D354A7a3Bd1Fbcf5C 0.255740325203955574
Wintermute 0xB933AEe47C438f22DE0747D57fc239FE37878Dd1 0.18978875759874189
keyrock 0x1855f41B8A86e701E33199DE7C25d3e3830698ba 0.155524272169448222
Stablelab 0xea172676E4105e92Cc52DBf45fD93b274eC96676 0.288310681980917428

To avoid unnecessary complexity during the AIP implementation stage, we propose to round these figures strictly up at the second decimal point, and here’s the result:

Name Address Gas Used
ACI 0x329c54289Ff5D6B7b7daE13592C6B1EDA1543eD4 0.95
ACI AIP deployer 0x3Cbded22F878aFC8d39dCD744d3Fe62086B76193 0.33
Flipside 0x62a43123FE71f9764f26554b3F5017627996816a 0.38
TokenLogic 0xA06c2e5BB33cd6718b08EC9335081Cbba62861f7 0.21
michigan 0x13BDaE8c5F0fC40231F0E6A4ad70196F59138548 0.21
LBS Blockchain 0xB83b3e9C8E3393889Afb272D354A7a3Bd1Fbcf5C 0.26
Wintermute 0xB933AEe47C438f22DE0747D57fc239FE37878Dd1 0.19
keyrock 0x1855f41B8A86e701E33199DE7C25d3e3830698ba 0.16
Stablelab 0xea172676E4105e92Cc52DBf45fD93b274eC96676 0.29

The total gas used for recognized delegates in the past quarter is ~2.98 ETH, corresponding to a few dozen minutes of protocol ETH revenue.

We will wait for feedback from the community, and if there’s a consensus, we’ll escalate this ARFC to snapshot with these figures on Monday.

3 Likes
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What about gas spent on deploying smart contract for the AIPs ? For example the ACI spent 0.19 eth on deploying smart contract during this period, mostly related on AIP (apart for this one and that one, maybe…)

Did I miss something? Neither the code shared by the aci nor the query by flipside seems to count it. I am asking as I was planning to spend some time making a dune dashboard about delegate gas spending as a side project.

query for the 0.19 eth: https://dune.com/queries/2617383

1 Like
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@Alice nice catch – had a similar question after seeing the update.

Had this reply queued up:

Hey Marc – are we reimbursing for AIP costs too?

Noticed you included your AIP deployer in this list ; if so, it may be worth letting others know to incentive a willingness to post and deploy AIPs on-chain.

I know Flipside has incurred AIP costs on behalf of Llama and for our cbETH proposal. Llama reimbursed for the cost of their proposals but this may be a more sustainable rote.

This may apply to other delegates as well - and was omitted in the original query.

2 Likes
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these two tx are deploying interestRate Strategies for V2 in the context of BUSD offboarding plan AIPs part I and II, for technical reasons the process is a fair bit different than other kind of AIPs.

I’m in favor fo having contracts deployment & payloads deployment repaid by DAO, overall cost for DAO is low and not sure it should be “cost of doing business” for service providers & delegate platforms pushing AIPs “mechanical cost” should be covered by DAO imho.

This first quarter snapshot & payment is a way to kickstart things, it doesn’t need to be 100% coverage of every edge case yet, we can fine-tune next quarter and so on.
the ACI is fine with “losing” 0.19 ETH this time, what’s important for us is to start having the DAO cover these costs to incentivize involvement from active contributors.

Snapshot was approved by governance, AIP will be written and sent to review tomorrow.
on the technical side, it’s a simple transfer() call of WeTH to a list of addresses.

https://snapshot.org/#/aave.eth/proposal/0xff11b348c1e8df41555d7579c7785942378bcf09ff1d9ca97af1d86b2b124beb

1 Like
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Noted !
Hopefuly I will have useful data to present by that time ^^

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