Summary
Separate governance and assets on the DAO multisig; send assets to kpk managed multisig. At the same time, the kpk managed multisig’s owners will be replaced by the Balancer Foundation directors (3/4). Overall this increases security, speed of execution and capital efficiency.
Separation of Coin and State
Serious optimisation of processes on the DAO multisig has always been very tough, given the slow (secure!) signing cadence and high risk of compromising governance or losing assets. An example of this would be rebalancing some of its smaller asset positions into different assets (e.g. stablecoins or passive altcoins), or installing automation modules (e.g. the unexecuted BIP-715).
In an attempt to make the DAO multisig more manageable, it is proposed that we separate its governance authority from the assets it is holding. The most logical way to do so is to keep governance where it is (0x10A19e7eE7d7F8a52822f6817de8ea18204F2e4f
), and to sweep all its assets to the @kpk managed multisig (0x0EFcCBb9E2C09Ea29551879bd9Da32362b32fc89
). A big part of the DAO’s assets are there already; sending the remaining Ethereum assets over would make it easier for @kpk to manage and rebalance Balancer’s whole treasury. Some positions, such as the uncirculating $BAL or some positions already mandated by a previous BIP, will be left untouched by @kpk. These positions will thus be exempt from their management fee. @kpk will share a detailed overview of all to be migrated positions.
Make Foundation Owner of kpk Managed Multisig
The kpk managed multisig can act faster because it has a module installed that is given permissions for certain pre-approved actions. However, giving these permissions and/or performing any non pre-approved actions still require the full signer set to enact. This creates the risk that moving all treasury assets to the kpk managed multisig doesnt solve the problem of slow signing.
It is therefore proposed that the signer set on the kpk managed multisig is replaced completely with the signer set of the Balancer Foundation multisig. These signers, the directors of the Balancer Foundation, are subject to votes from regular DAO governance. According to article 5.3 of Balancer’s Foundation Articles of Association: “The Token Holders have the power, by Governance Resolution, to appoint or remove Directors.” And with a threshold of 3 out of 4, it will make the multisig significantly faster in performing permission approvals and any ad hoc actions.