CGP 115 reached the required quorum and YES votes (98.9% YES) on February 2nd; however, the Celo Governance Approvers, the Celo governance stakeholders involved in ensuring Celo Governance Proposals are safe to execute, requested more time to review the proposal properly.
After I, as the proposer, agreed with the additional review time, additional considerations started to emerge related to the ~81M CELO this proposal initially aimed to send from the Mento Reserve to the Celo Community Treasury. Various stakeholders shared their concerns with the Mento Reserve parameters post-transfer, the time-sensitive steps required to finalize the transfer and rebalance the reserve, and the effect the transfer could have on CELO utilization. As a result, the transfer of CELO from the Mento Reserve to the Community Treasury has been removed from this CGP and will be voted on in a separate, future proposal.
The proposal sets a new standard for Celo Governance operations and Public Goods funding.
There are three sections of this proposal that together aim to accelerate Celo’s vision of creating a regenerative digital economy that creates conditions of prosperity for all.
Establish the Celo Governance Guidelines v0.1
This section describes the Celo Governance Guidelines V0.1. The Governance Guidelines separate the Celo Governance Proposals into different categories and standardize the process for the voting, execution, and resubmission of proposals. It also transforms the role of Celo Governance Proposal Editors to a more active role that ensures proposers correctly follow the Celo Governance Guidelines, referred to as the Governance Guardians, and elects the first batch of Guardians. Finally, it raises the deposit for submitting a proposal from 100 to 10,000 CELO.
Read the detailed Celo Governance Guidelines document here or in the CGP0115 Folder in the Celo Governance Github.
Revised Mento reserve: Return a combination of cUSD and CELO
The section describes the process for utilizing a share of the 95M CELO to be returned to the Community Treasury to mint cUSD to the Celo Community Treasury and return the remaining CELO. The Mento Reserve will mint 10,000,000 cUSD in exchange for the equivalent value of CELO using the 30-day moving average price on January 22nd, 2024, using CoinGecko’s price feeds. The remaining 81,633,000 CELO will be sent to the Celo Community Treasury at a later stage through a separate proposal (revised from the initial proposal to reduce complexity and risks). This minting of cUSD will grant the Celo Community Treasury a significant amount of stablecoins for operations, increase the distribution of cUSD, and increase the stability of CELO, which the Mento reserve also benefits from.
Read the revised detailed Return a combination of cUSD and CELO document here or in the CGP0115 Folder in the Celo Governance Github.
Fund the Celo Public Goods Budget H1 2024
The section describes the process of earmarking a budget of up to 1,600,000 cUSD and 700,000 CELO to fund Celo Public Goods in the first half of 2024 (H1) to streamline funding distribution to key Celo Public Goods, such as Celo Regional DAOs, Celo Project Incubation, and Celo Grants, run Celo-native Quadratic Funding (QF) and Retrospective Public Goods Funding (RPGF). It also establishes and elects the first Celo Public Goods Stewards that will administer these resources efficiently, enhance coordination, and support the growth of the Celo ecosystem.
Read the detailed Fund the Celo Public Goods Budget H1 2024 document here or in the CGP0115 Folder in the Celo Governance Github.
This proposal directly results from the Governance Development Sprint ahead of CEL2, which started in October, and considers the information from the Existing Governance Tools and L2 Governance Framework and Celo Community Proposals and Treasury Allocation from Apr 2020 - Nov 2023. The initial direction was shared in the Forum in November and presented in Kuneco in December. The draft has been up on the forum for community input for about two weeks. Now, all changes have been merged, and the proposal is ready to move towards a vote.
We intend to present the proposal in the Governance Call on January 24th, 2024, and if no significant conflicts arise, submit it to Celo Governance the day after.
The reasoning behind this transfer is as follows. The 20m Curve Pool was created by the Mento Reserve as part of CGP 80: Move Mento-Owned cUSD<->USDC Liquidity from Mobius to Curve. The USDC in this pool are reserve collateral, and the cUSD are still owned by the reserve and therefore not in supply until someone buys them out of the pool and adds USDC collateral by doing so.
With the Curve LP tokens currently sitting in the Celo Governance Proxy and not in an account controlled by the Mento Reserve, the Mento Reserve cannot react quickly if it needs to touch this USDC collateral (currently about 9.5M) - it requires another CGP to move them. That should have ideally been avoided by sending the LP tokens to a Mento Reserve address as part of CGP 80 in the first place and was avoided for all the other pools created by governance and owned by the Mento Reserve (for example the WBTC/WBTC pool (https://info.uniswap.org/#/celo/pools/0xa373c25c61fe6659a575b6d40975182f2f1fb919) and the WETH/CELO pool (https://info.uniswap.org/#/celo/pools/0xd88d5f9e6c10e6febc9296a454f6c2589b1e8fae).
So this transfer of the Cure LP tokens is NOT a transfer of ownership (funds were always Mento Reserve owned) but is simply to make sure that the Mento Reserve stays operational and can access all the collateral in a timeline manner if it needs to, for example, if it needs to refill the Mento cUSD<->axlUSDC pair with USDC. The transfer was added to this proposal as a house-keeping item.
The intent of the CGP is to:
[
{
"contract": "StableTokenV2",
"address": "0x765DE816845861e75A25fCA122bb6898B8B1282a",
"function": "setExchange",
"args": ["0xD533Ca259b330c7A88f74E000a3FaEa2d63B7972"],
"value": "0"
},
{
"contract": "StableToken",
"address": "0x765DE816845861e75A25fCA122bb6898B8B1282a",
"function": "mint",
"args": [
"0xD533Ca259b330c7A88f74E000a3FaEa2d63B7972",
"10000000000000000000000000"
],
"value": "0"
},
{
"contract": "StableTokenV2",
"address": "0x765DE816845861e75A25fCA122bb6898B8B1282a",
"function": "setExchange",
"args": ["0x0000000000000000000000000000000000000000"],
"value": "0"
},
{
"address": "0xf4cab10dC19695AaCe14b7A16d7705b600ad5F73",
"function": "transfer(address,uint256)",
"args": [
"0x87647780180B8f55980C7D3fFeFe08a9B29e9aE1",
"20001239154911011864219072"
],
"value": "0"
},
{
"contract": "Governance",
"address": "0xD533Ca259b330c7A88f74E000a3FaEa2d63B7972",
"function": "setMinDeposit",
"args": ["10000000000000000000000"],
"value": "0"
},
{
"contract": "GoldToken",
"address": "0x471EcE3750Da237f93B8E339c536989b8978a438",
"function": "increaseAllowance",
"args": [
"0x71f433514957d00287A9d33Da759f1e0C1732381",
"700000000000000000000000"
],
"value": "0"
},
{
"contract": "StableToken",
"address": "0x765DE816845861e75A25fCA122bb6898B8B1282a",
"function": "increaseAllowance",
"args": [
"0x71f433514957d00287A9d33Da759f1e0C1732381",
"1700000000000000000000000"
],
"value": "0"
}
]
A detailed breakdown of the involved transactions can be found here.
A simulation of the transaction can be found here.