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🗳️ Trustless governance and execution
💡Read about our decentralised principles and how we’re living them here
Users should ALWAYS be in control of their funds and their keys. Organisations should NEVER be able to block deposits/withdrawals unless it was via a democratic, decentralised and transparent process. Above all, users should be able to trust and verify the management and execution of a vote agreed on by the community. This is the only way a customer can fully trust an Organisation.
It is also the only way we will be able to argue with regulators and governing bodies that DeFi is an improvement over CeFi/TradFi.
In a traditional organisation, the governance can sometimes be somewhat democratic (shareholder resolutions, public market share price, etc.). Once a decision is taken and the execution phase starts, a paper trail has to be created to document the execution and prove to a regulator or auditor with some degree of certainty that the execution took place.
In DeFi today, once a decision is taken via a governance vote, it is most often manually actioned by a single signer or, at best, by a multisig (e.g. Gnosis where at least x out of n signers have to agree to a particular transaction).
Here is an example:
I was not able to find a transparent execution for it, it is therefore for the community to assume the execution is actually done, what if the Aave team is not able to implement it, what if there is a bad actor?
As always, we are committed to building trustlessly, which will allow us to reach a much wider market and truly make DeFi available for all.
We have decentralised our decision-making process by asking out community to vote with their $vlALLUO in our governance rounds (https://vote.alluo.com) and now have created the ability for anyone in the community to trigger a vote and run the execution in a very simple and transparent way, even if none of the core team is available.
On Jul-15–2022 at 12:09:20, the Alluo core team created the first cross-chain vote execution using our automated decentralised system.
Our next stop is to automate our Liquidity Direction vote. This is by far the most complicated vote to automate, it hits every difficulty box: Cross-chain, asset transfers, exposure to slippage and arbitrage, high incentive to steal funds “in transit” etc.
This is one of the most challenging projects our Core Blockchain team has taken on, but we are very excited to solve it, particularly in light of the recent disasters like Celsius, 3AC where it is the opacity of managing the funds that led to these companies’ demise.
We’re close to being complete and hope to push this next element towards the end of October 2022 🤞