Balancer (BAL) Governance
  • 29 Jan 2021
  • 1 Minute to read
  • Contributors
  • Dark
    Light
  • PDF

Balancer (BAL) Governance

  • Dark
    Light
  • PDF

image.png

Key Facts:

Protocol Overview:

Balancer is a decentralized exchange protocol that enables trading between standard Ethereum tokens. Liquidity providers can deposit groups of up to 8 assets in pools to earn trading fees, in exchange for bearing risk of losses from large price movements.

While the Balancer Exchange v1 is non-upgradable and has no governed admin controls, BAL holders are empowered to direct the treasury (including approval of grants and making changes to liquidity incentive programs) and may have a larger role to play in managing the forthcoming Balancer v2.

Venues for Discussion:

The majority of informal discussion takes place in Balancer's Discord chat, with more formal proposals being aired in the Discourse forum.

Balancer will be integrating Sourcecred into the forum and chat, allowing users to earn BAL for their contributions.

Voting Interface and Process:

Votes are generally held on a weekly basis, with discussion taking place in the forum during the previous week. Voting takes place via Snapshot, which was designed by a member of the Balancer team. Voting is gas free and low friction, but final results of proposals must be executed by the Balancer Labs team.

Balancer recently approved a voting reward mechanism called "gov factor", where addresses that participate in the most recent votes earn an additional 10% bonus on their liquidity rewards. Along with Balancer's recognition of BAL deposited within liquidity pools for voting, this added incentive helps align interest between the platform and liquidity providers.

Resources:


Was this article helpful?