SLURP-23 | Network Aligned Individual Liaisons [NAILs] Expansion Framework and the Continued Decentralization of stake.link

SLURPs
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Abstract

LinkPool’s contribution to stake.link as a core contributor has established the foundation for the protocol. We’re at a pivotal juncture in the evolution of stake.link, having further solidified our position in the realm of LINK Staking and the upcoming deployment to Metis L2 as an LST Provider. We propose to the stake.link Council the formation of an initial framework called NAILs (Network Aligned Individual Liaisons) to begin hiring individuals as full/part-time employees of the stake.link DAO. These individuals will be compensated by the DAO treasury and will dedicate their time to operational, strategic, and community-oriented tasks that will drive the growth and sustainability of the stake.link protocol.

Coinciding with the hiring of the first employee of the stake.link DAO, Core Contributor LinkPool views this development as a unique opportunity to uphold its commitment to the decentralization of stake.link by relinquishing one of the three stake.link DAO Council seats that it currently holds. This seat will be transferred to the Network Aligned Individual Liaison (NAIL) position, ensuring the DAO and all its representatives are accurately represented in governance.

Summary

This proposal seeks approval to appoint the current Community Council Representative, Tokenized, as the first full-time employee of the stake.link DAO under the proposed NAILs initiative, with a monthly compensation of $3,000. If approved, Tokenized will resign from the current council seat and transition to a full-time business development and DAO operations role, pursuing DeFi integrations, increasing the growth of stake.link to other protocols and blockchain networks, expanding its onchain ecosystem presence, and handling other general maintenance activities of the protocol, such as topping off incentives, payments to community council members, payments for related treasury costs, and so on.

If SLURP-23 is approved by the DAO, it will trigger a snap-Community Council Election to fill the vacant position. This new Community Council Representative will serve the remaining 3-month tenure of Epoch 2 and receive the DAO-directed compensation of $1,000 per month for those remaining months.

Rationale

stake.link has seen impressive TVL growth in the last 12 months, increasing from less than $5m in TVL in Summer 2023 to over $26m in TVL as of writing. Additionally, stake.link has been given the green light by the Metis DAO to deploy as an LST Protocol as part of Metis L2’s initiative to decentralize its sequencer set. This impending expansion will mark stake.link’s first foray beyond Liquid LINK Staking, and it’s only the beginning.

These developments are significant victories for stake.link and are a testament to the strategic planning, depth of talent, and novel mechanisms that have enabled the protocol to thrive. As the protocol’s TVL grows and as it expands into other ecosystems, it’s critical to the continued success of stake.link to have dedicated DAO employees who can devote their full working hours to ensuring the DAO receives the operational, maintenance, and strategic business development attention it deserves.

With this proposed first NAIL hire, we seek to create a snowball effect for the protocol. In stake.link’s first 20 months, it will have been formally deployed as a liquid staking provider in two ecosystems. In the next 20 months, we aim to deploy in many multiples more. Having a dedicated Network Aligned Individual Liaison spending their working hours providing the needed maintenance and upkeep of stake.link, DAO operations, new staking/liquid staking opportunities, grant proposals, synergies, and areas of opportunity across the vast spectrum of Web3 will be critical to continuing to deploy to high-quality networks.

Why Tokenized?

Tokenized is a longtime member of the community and a Web3, DeFi native with a deep understanding of how the onchain world operates. This confidence is evident in his current role as a representative on the stake.link Governing Council, where he was voted in by the Community as one of two representatives. We believe it’s in the best interest of the stake.link DAO to hire someone who is ready to contribute immediately with minimal ramp-up time. As core contributors, we have full faith in Tokenized’s ability to meet this requirement.

In addition to his overall business acumen, Tokenized has been instrumental in creating and contributing to stake.link SLURPs as well as forward-thinking Meta-Discussions that address the complex challenges facing the protocol. His proactive strategy ensures that stake.link is best positioned for long-term success.

Tokenized has consistently demonstrated that he truly understands stake.link, what’s best for the protocol, and what’s needed to ensure its longevity.

Role and Responsibilities

As the Business Development Lead, Tokenized will undertake the following key responsibilities:

  • DeFi Integrations: Pursue DeFi integrations for stake.link protocol tokens (stLINK, wstLINK, SDL, stMETIS, etc.) to enhance market composability and visibility in various DeFi protocols, aiming to increase onchain liquidity depth and lending opportunities.
  • Council Election Management: Oversee the council election process, ensuring a smooth transition from votes to onchain rights ownership.
  • stake.link DeFi Monitoring: Track and manage the DAO’s various liquidity pools, monitoring incentives based on Total Value Locked (TVL) to optimize liquidity provision based on targets.
  • DAO Representation: Act as the primary liaison between the DAO, LinkPool, node operators, and the community (reSDL holders), ensuring effective communication and collaboration. The Council seat being transferred will represent the DAO and all its representatives.
  • Governance Coordinator: Oversee the governance proposal flow, manage voting processes, and ensure transparency. This includes monitoring approved SLURPs and checking ETAs/deadlines for those requiring work from core contributors.

Compensation & Transition Plan

The proposed compensation for this role is $3,000 per month, to be paid from the DAO treasury in SDL tokens at the end of each month. The role will initially be served for 1 year.

Upon approval of this proposal, Tokenized will resign from the Community Council Seat he currently holds to assume the Council Seat that will be relinquished by Core Contributor LinkPool and granted to the NAIL on the DAO payroll. If Tokenized leaves without another representative, the vote will be transferred back to Core Contributor LinkPool to maintain the status quo. However, if other NAILs or representatives of the DAO are in place, the vote will be transferred to one of them. The passage of this SLURP will immediately trigger snap Community Council elections to fill the vacancy.

Conclusion

Momentum begets momentum, and stake.link has momentum. The protocol has accomplished exceptional feats in the face of adversity, and as we embark on a new journey to expand to more blockchain and staking networks, it’s mission-critical that the DAO receives the dedicated attention it deserves as well as a more refined representation on the stake.link Council.

This SLURP accomplishes both.

In the long term, we envision a truly self-sustaining decentralized autonomous organization. Given the talent of infrastructure providers that compose the DAO and the proposed initiatives outlined in this SLURP, we present to the stake.link Council critical components to laying the groundwork to see through that sustainability we aim to achieve.

We look forward to discussing this proposal with all members of the protocol.

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Hi Everyone!

I’m thrilled and very honored to be nominated as an employee for the SDL DAO under the new NAILs initiative, to serve as the voice for the DAO community and push the protocol’s presence within DeFi. Terminally online,packed bags and full conviction - I’ll be committed to the growth and success of stake.link. I’ve been following Jonny’s work since 2018 and I truly believe in the LINK LST vision and the model they’ve built around it and as we continue to expand our ever growing ecosystem, I’ll make sure to keep alignment to all stakeholders - Node operators. reSDL stakers. stLINK holders, liquidity providers etc. Being a part of this community that revolves around cutting edge tech has been a rewarding experience, even if things get “emotional” - it’s clear we walk the same path forward. Excited to be proposed to the community for this role and devote more time than ever to our shared vision - assuming the vote will pass with your support.

Together I’m sure we can achieve great milestones and establish stake.link as a leader in the Chainlink NOP & LST ecosystem. Send it.

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I’m in support of the creation of this role. However, I do have a few thoughts about the Council vote that comes with it.

  • I think Tokenized is an excellent candidate for this role. He has shown enthusiasm and engagement with the community as a Council representative from day one. The fact he knows the protocol well and is a DeFi native should see him hit the ground running.
  • Is his identity known by the team? Has he been vetted with an interview process and so on?
  • The salary seems fair and it’s good that it’s denominated in USD rather than a set SDL amount.

In terms of the Community seat vote:

  • A Council vote is being transferred to Tokenized which is centralising in some respects as it is the voice/opinion of one person. In other words, who will the NAIL vote represent exactly?
  • I assume that this vote would be transferred with the role if he was to leave it? How would this transfer take place? If there are future DAO employees then will they also be given votes? I’m just thinking in terms of long-term strategy about what the DAO will look like and function.
  • In general, I am sceptical of DAOs and think that the current structure has been effective. It allows discussion and input from across the community but with LinkPool having strong influence over the decision-making process. The trade-off between centralisation and decentralisation is an interesting one and I think we should be wary in the shorter-term.
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I second this! We can scale outreach with this proposal

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Just to give some thoughts on this proposal and the need for NAILs, the DAO and the protocol is in a crucial part of time to which it needs to build on its success by aggressively pursuing opportunities throughout DeFi. The expansion on Metis is a good example of this, and is one to which we should seek to do more often. With a large amount of LINK staked, liquidity and composability is key to build on what is already done to secure long term success.

Onboarding representatives directly into the DAO, especially ones that are Web3 savvy, is a sure fire way to reduce any bottlenecks that we have in BD and to chase new opportunities that may have not been accessible before.

The protocol needs to advertise itself more externally and form closer bonds throughout the DeFi space and this is a good step to making this happen.

Hey @EqS, thanks again for the thoughtful reply.

It is known by the team and he has been vetted appropriately.

The Council seat being transferred is to represent the DAO and all of its representatives. That would just be the one with this proposal, but this really could be the first of many going forward to which this seat gives them a direct vote.

If he was to leave with no other representative, the vote would be transferred back to LinkPool to keep status-quo, but if there was other NAILs and representatives of the DAO it would be transferred to one of those.

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