Governance Meeting Notes Mega-Thread

Abstract

  • SCRT Labs has recently released their Delegation Strategy for 2022, all validators should carefully read the blogpost.
  • Due to the increase in staked coins percentage (currently ~55%) the apr has gone down slightly. Rough estimations suggest the effective apr might lower to ~21% in the next weeks if we approach a staked coins percentage of ~63%. Ideally we keep effective apr above 20%, this seems to be the case for the foreseeable future so immediate action is not required.
  • A discussion regarding a minimum validator commission percentage has surfaced again, initial discussions suggest that there are at least some supporters and that it would be fairly easy to implement. However, further discussions are required and will occur amongst others in governance calls.

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  • Next week will be our first ‘major’ Monthly Governance Meeting on Wednesday January 26th from 16h00 - 17h00 UTC. All parties involved or interested in SCRT Governance are invited and encouraged to join!
  • The best moment to consider increasing the MaxValidator parameter would probably be after the next hardfork.Depending on performance improvements, 100 might be in the cards. For now 70 seems good.
  • The idea of a minimum validator commision was raised again by one of the validators in the 2021-Q4 Validator Survey. One of the main advantages seems to be that it would shift competition on the basis of higher returns to competition on the basis of added value. One of the main disadvantages would be that new validators have less ways to set themselves apart. A new discussion thread has been created on the forums and welcome everyone’s thoughts and discussions.

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  • 110 community members, amongst whom at least 15 validators, attended the first monthly Governance call on Discord. Going forward, every last Wednesday of the month will see the Monthly Governance call at 16h00 UTC, in addition to the weekly governance calls.
  • An increase in short surveys sent to the validators seems more popular than increased use of signaling proposals.
  • Preliminary dates for the Secret Foundation Transparency Report are Feb. 9th or 16th.

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  • Developers have freedom to give their own twist to an approved CCBL project in their proposal, as long as it is in the spirit of the approved project. Each proposal is judged on its own merits, and proposals can of course also be made outside of the CCBL.
  • Feedback from the community is wanted in setting the inclusion parameters for validators on the staking whitelist of the Shade liquid staking product. By selecting the right rules, hopefully good behavior can be stimulated.

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  • The Education Committee and Support Team proposals are both being discussed on the forums. Edu has Ertemann and SeanPop as new leads and the Support team is expanded with Ertemann and Waffle to improve coverage. Education will now include a subcommittee ‘agents of the round table’ in their discretionary budget. IGC will go to the forums next week.
  • The individual addresses that voted on proposal #72 more than tripled from the previous record to 4690, including 40 validators! Great to see such a massive increase in governance participation. For the Secret Agents, participation in on-chain governance is covered by mission V-12 - Support Democracy.

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  • The first proposal resulting from an approved CCBL idea has been placed on the forums. This proposal aims to create a reference implementation for fractionalized secret NFTs.
  • A Developer Committee charter and proposal has been posted on the forums by Gino. He has several plans to attract more developers to the ecosystem.
  • The community and developers would like to improve communication between SCRT Labs and the community. Ideally by means of regular (monthly or quarterly) updates by SCRT Labs where they answer community questions, for example related to upcoming upgrades.
  • The Secret Foundation Transparency Report is delayed a little because something came up, more information will be provided with the release of the TR. That may be the 23rd of February, but no guarantees can be given at this moment.

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  • A proposal to decrease the maximum gas per block from 10M to 4M will be placed on-chain soon. SCRT Labs believes this will make long block times less likely. More information can be found here: DISCUSS: Network Issues w/ Shade Airdrop - 2/21/22 Should intervention be necessary within the 7 day voting period, that is of course always possible.
  • Potential shorter proposal voting periods could help with these types of urgent proposals, but this will require discussions regarding specifics, and everyone will need to agree with the implementation.
  • Roughly half the expected early claims from the Shade airdrop are claimed, once the first 75k - 80k are claimed it is expected it will slow down. Shade expects roughly 10x the current load in the next 3 months when they get closer to other mainnet launches.
  • Load balancing the front-end seems like a good solution to control the network stability, future projects can learn from this. We need to put more effort into sharing these types of best practices.

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Abstract

  • The 2021-Q4 Secret Foundation Transparency Report will be presented next week Wednesday March 9th at 16h00 UTC during our weekly Governance Call.
  • The dev committee proposal now includes Lumi and Xiphear from Trivium as co-leads, in addition to Gino from Dreamscapes.
  • Community governance participation has 10x-ed over the past months, no one clear cause can be identified, but it seems like airdrop hunters are at least partially causing it.
  • Some committees might be served better by transitioning back to SF for funding, there are pros and cons for either solution and the discussion has only started. Leave your thoughts in the governance-related channels on Discord or Telegram.

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Abstract

  • Tor presented the 2021-Q4 SF Transparency Report which will be published sometime next week after all questions have been incorporated. Any questions should be directed to the governance channels on Discord or Telegram so they can be included in the final version of the report.
  • Small changes were made to the Secret Network Charter & Code of Conduct after final input by the validators. It will move into the on-chain voting period tomorrow.

Action Points

  • Leave any questions regarding the SF Transparency Report in the governance channels on Discord or Telegram. They will be included in the final version of the report.
  • Cast your votes on the open proposals: https://secretnodes.com/secret/chains/secret-4/governance
  • Reach out to Patrick at SF if you are interested in joining Secret Foundation as a social media manager.
  • Leave feedback on the minimum validator commision discussion on the forums: Minimum Validator Commision - Discussion

Full Notes

Abstract

  • Committee meetings have transitioned to DST together with the US, they now start one hour earlier in UTC time.
  • A new Validator Survey will be released at the end of March / beginning of April containing questions related to newly submitted CCBL projects, a potential minimum validator fee, and some optional questions regarding infrastructure and hardware.
  • An auto-compounding solution for SCRT stakers is being explored.

Action Points

  • Is there something you’d like to see built on Secret Network? Submit it as a CCBL project idea: https://forms.gle/vm9h5hy6KGBmjXaR6
  • Leave any questions regarding the SF Transparency Report in the governance channels on Discord or Telegram. They will be included in the final version of the report.
  • Cast your votes on the open proposals: https://secretnodes.com/secret/chains/secret-4/governance
  • If you have any questions you would like to ask the validators, leave them in the governance channels and they will be incorporated in the next Validator Survey.
  • Reach out to Patrick at SF if you are interested in joining Secret Foundation as a social media manager.
  • Leave feedback on the minimum validator commision discussion on the forums: Minimum Validator Commision - Discussion

Full Notes

Abstract

  • The SN Charter & CoC has passed on-chain governance (proposal #81). Governance updates sent to validators will now also include whether a proposal abides by the Charter.
  • The first upcoming upgrade will most likely occur in April, for more details see the recent SCRT Labs blogpost: SCRT Labs Update: Scaling Secret - Bringing Privacy to Smart Contracts and Public Blockchains This upgrade will be the first to utilize the x/upgrade module and cosmovisor, which will lead to easier upgrades. Another upgrade is tentatively scheduled for June. Upgrades will most likely occur more frequently moving forward.
  • The next Validator Survey will be sent out next week, this time a similar version will also be made available to the community to get their feedback. Topics will include: a minimum validator commision, pay-rates, validator infrastructure, and new CCBL projects
  • Next week there will be another Monthly Governance call, March 30th 15h00 UTC on chat.scrt.network

Action Points

  • Is there something you’d like to see built on Secret Network? Submit it as a CCBL project idea: https://forms.gle/vm9h5hy6KGBmjXaR6
  • Leave any questions regarding the SF Transparency Report in the governance channels on Discord or Telegram. They will be included in the final version of the report.
  • Cast your votes on the open proposals: secret | Secret 4 | Governance Proposals & Results
  • If you have any questions you would like to ask the validators, leave them in the governance channels before Tuesday and they will be incorporated in the next Validator Survey.
  • Last Chance: Reach out to Patrick at SF if you are interested in joining Secret Foundation as a social media manager.
  • Leave feedback on the minimum validator commision discussion on the forums: Minimum Validator Commision - Discussion

Full Notes

Abstract

  • The April upgrade will be about immediate scalability and the June upgrade will be about cross-chain contracts. Both upgrades will probably be near the end of the month, but more details to be released at a future date. It would be good if we are able to pull forward support for new hardware, at least for some categories.
  • Carter & Jordan are leaving Secret Foundation after many great contributions to both the foundation and the broader ecosystem. Luckily for us they will still be very involved in the Secret Network.
  • A lot of different opinions on the focal currency topic, a good portion of the community thinks it’s a risky idea which could negatively affect DeFi applications on the network while at the same time opening us up to a lot of risks. This seems most suitable for projects / chains that are very closely connected with Secret Network, for example OPEN. It might work well if it also includes shared security across the chains.

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  • The cosmwasm issue doesn’t affect our live network as it didn’t exist in the version that we have. The April upgrade will include a few backported cosmwasm functions, however only interfaces and they will be reimplementing in the enclave so even if they have vulnerabilities we won’t be impacted.
  • The best Community Curated Bounty List idea submitted by Friday April 8th 14h00 UTC will win 25 SCRT! Link: https://forms.gle/vm9h5hy6KGBmjXaR6
  • When selecting a bridge provider technical factors should be considered as well as standardization factors. We should prevent bad UX, i.e. do migrations as infrequently as possible. Submit items for a wishlist on the forums so we can form a RFP for Secret Network Bridging. Should we limit the search to only bridges that work on every IBC chain, or also include Secret Network exclusive solutions?
  • Right now SCRT Labs is leaning towards waiting for inqlusion’s liquid staking module and including it in the upgrade in June / early July. This module by inqlusion will most likely be deployed in the entire cosmos ecosystem in the next months. It’s an NFT solution where you can convert staked SCRT into an NFT. That NFT accrues the staking rewards and is transferable and redeemable.
  • There will be an additional governance meeting by the CCBL working group on Friday April 8th at 15h00 UTC to go through the submitted CCBL project ideas.

Action Points

Full Notes

1 Like

Abstract

  • A phased approach to increase the validator active set seems to be the most popular solution, suggested is an increase to 85 following Shockwave Alpha and a further increase to 100 following Shockwave Omega. Peering issues seem to be the biggest argument against increasing at this moment.
  • An additional ‘express’ proposal type with a shorter voting period seems useful for certain situations that are not so critical that it needs immediate intervention, but where a 7 day voting period is too long. Quorum for such a proposal type should be higher, for example 50%, and a supermajority might be warranted.
  • In preparation of the main SF tax discussion next week the community highlighted some of its concerns and wants regarding this topic. This mainly focussed around SF creating a scope and budget in collaboration with the community and SLabs to then arrive at an optimal SF tax. A good portion of the attendees felt strongly about taking steps in the right direction in the near future instead of pushing it another 3 months as they were afraid that it would otherwise be placed on a backburner as the default situation has the higher tax level.

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  • The Shockwave Alpha upgrade has been delayed by two weeks to May 11th due to additional testing of the new upgrade module.
  • Increasing the active set by 10 should not have a large negative effect on network stability. If anything causes a downturn in network performance it will likely not matter if we have 70 or 80 validators in the active set. The delay of the upgrade also allows us to determine the effect of this change without being influenced by an upgrade.
  • The community will gather their wishes and a proposed timeline regarding SF scope and legal structure modifications in a document in preparation of next week’s Governance call. A draft can be found in the governance channel on Discord.
  • Clarity was given on the current SF legal structure and its origins. Scope and transparency discussions are orthogonal and can happen in parallel. An updated scope is necessary to determine a budget and as a result a suitable SF tax level. The solution space should not be limited, perhaps creating a new 3rd NPO entity is the best solution. Clear timelines can be set around an audit, an NPO switch is more complicated due to legal implications.
  • The 2021-Q4 Secret Foundation Transparency Report is now publicly available: SF Q4 Transparency Report (Presented Q1 2022)

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  • A very productive governance call going over the coming changes to SF structure and scope. In short, SF will transition to an NPO and spearhead marketing, comms, branding, and events. SCRT Labs will spearhead biz dev, grants, infrastructure, and documentation.
  • Tor will propose an interim reduction of the SF tax to 4% on the forums soon, after 3 days of discussion it will move to the chain. Once the scope and budget have been determined the tax will be adjusted up / down as needed.
  • An auditor will be identified by Guy and Tor in May.
  • A working group will be gathered by Guy, Tor, and pmuecke to find a few people in the community with knowledge in the following areas: finding an auditor, legal counsel, a CPA to get suggestions for the transition to an NPO.
  • Beside the Validator Survey there is now also a slightly shorter Community Survey: https://forms.gle/XKcWp4Toszxg2jyh8

Action Points

Full Notes

2 Likes

Abstract

  • A Testnet Committee is currently being discussed on the forums to further improve testnet and support developers during testing their contracts / applications. More information to follow in the next couple of days.
  • Node and Validator Operator support is currently already handled by the Support Team, if more support is needed after the upgrade it can be included in the next Support Team proposal.
  • The Working Group to help the process surrounding transitioning Secret Foundation to an NPO is currently being set up, if you have a relevant background / experience / contacts, please reach out.

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  • The testnet proposal is currently being reworked after input from the community on the forums. Further input is much appreciated. Reach out to Sandy or Taariq if you would like to contribute. Currently two approaches are being considered, a centralized and a decentralized one.
  • Most people in the governance call seemed to agree that committees should continue as usual until a potential structure change in collaboration with the Secret Foundation has been discussed further. More steps in this direction will be taken in the next few weeks.
  • In principle, discretionary budgets and funding are the responsibility of the lead/proposer once the voting period has concluded. That being said, we do feel strongly for everyone that has lost something in the recent UST crash and we are seeing what we as a community can do to help everyone affected, both within our own community as well as the Terra community.

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  • A plan was presented to move the awareness, education, and international growth committees funding from the chain to the Secret Foundation as part of a ‘Secret Agency’. These committees have substantial overlap with SF goals, this change will allow for more efficiency and closer collaboration.
  • Funding lead pay seems to be the easiest transition, only needing alignment between the committees and SF. SF is willing to fund lead pay starting immediately. The leads seem to prefer a transition period of another full funding period to ease the transition.
  • Funding of the discretionary budgets will be the harder aspect, as one of the requirements is that secret agents don’t need to KYC. This can not be integrated within the current SF processes.
  • No clear consensus appeared during the Governance call in relation to timing of this transition to funding by SF. Therefore, the proposals will go on-chain as originally planned and the community is asked to vote with their own transition timing preferences in mind.
  • With the current SF funding rate and their current resources, this transition does not seem to impact the SF tax at 4%.

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  • Awareness, IGC, and education are currently looking to structure the ‘secret agency’ as an Estonian NPO. SF will fund the ‘secret agency’ since their goals fall within the scope of SF, but not incorporate them. To get this NPO up and running will probably take ~6 weeks.
  • Consensus during the gov call seemed to be that the Terra Dev Fund is a great opportunity. A good number of people would prefer SLabs to pay for it through the ecosystem pool, but if they are unwilling it’s better that the stakers pay than no one at all.
  • A discussion is ongoing on the forums whether the potential 6% Terra Dev Fund tax should be offset by an increase in inflation.

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