Proposal: Unlocking Endorsement Capital to Foster Growth and Protecting the VebetterDAO ecosystem

VeBetterDAO
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Proposal: Unlocking Endorsement Capital to Foster Growth and Protecting the VebetterDao Ecosystem

1. The Current Problem: Locked Capital & Single Node dApp Endorsements.

The current VeBetterDAO endorsement model, while functional, imposes significant limitations that lock up valuable endorsement capital and reduce security for node holders.

  • Locked Endorsement Points: The “all-or-nothing” system requires endorsers to commit their entire point value to a single dApp. For a Mjolnir X node holder, this means 100 points are locked in one dApp, even if that dApp only needed a few points to reach its goal. This creates a massive pool of dormant endorsement capital that could be used to endorse new dApps. Or if a new dApp comes onto the DAO, an endorser may want to switch but has to bring all their points. Leaving a dApp they wish they could still endorse partially at risk.
  • Centralized Endorsements: The system allows a dApp to be fully endorsed by a single large node. This is not true decentralization and fails to represent broad community consensus, concentrating power instead of distributing it.

2. The Proposed Solution: Activating Capital and Flexible Governance

This proposal introduces a flexible and secure model designed to unlock dormant endorsement points and empower node holders. By moving to a partial-endorsement system, we can activate idle capital and give node holders granular control over their assets.

  • Unlocking Capital with Multiple dApp Endorsements: The single-dApp limit will be removed. Node holders will be able to split their points and distribute them across as many dApps as they wish. This immediately frees up thousands of locked points, allowing them to flow to new and emerging projects and stimulating ecosystem-wide growth.
  • Enhancing Security with Granular Control: The un-endorsement process will become partial. If a node holder wishes to withdraw support, they can choose exactly how many points to remove. Only those specific points will enter the cooldown period, leaving the rest of the node’s points active and available for use. This significantly enhances security and flexibility for the node holder.
  • Promoting Decentralization with an Endorsement Cap: A single node holder can endorse any given dApp with a maximum of 35 points. This ensures no single entity can unilaterally approve a project, forcing dApps to acquire genuine, broad-based community support.
    • Additionally, a cap of 115 total endorsement points per dApp will be implemented. This will allow padding and give some security for each dApps endorsement on the DAO, as well as freeing up more endorsement points to be used elsewhere. The 100 points requirement to get endorsed will remain.

3. Transition for Existing Endorsements

To ensure all participants benefit immediately, a one-time migration will occur.

  • Automatic Adjustment: Any existing endorsement from a single node holder to a dApp that exceeds the 35-point limit will be automatically reduced to 35 points.
  • Immediate Return of Points: All excess points will be instantly credited back to the node holder’s available point balance. These unlocked points will be immediately available for endorsing other dApps, with no cooldown.

This one-time event will instantly activate the new, more flexible and secure system for everyone.

4. Summary of Changes

Added Features
  • A new interface for assigning a specific number of endorsement points.
  • A new interface for removing a specific number of endorsement points.
  • A one-time, automatic migration script to adjust all existing endorsements.
Modified Features
  • Capital Unlocked: Node holders can split points across multiple dApps.
  • Security Enhanced: Only withdrawn points enter cooldown, not the entire node’s balance.
  • Decentralization Fostered: A 35-point maximum per node per dApp is introduced.
  • Buffer Added: The maximum endorsement cap for a dApp is now 115 points.
Removed Features
  • The “one dApp per node” limitation is removed.
  • The “all-or-nothing” endorsement and un-endorsement model is deprecated.
Unchanged Features
  • The requirement for a dApp to be successfully endorsed remains at 100 points.
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