Celo Governance Call 1

[YazzyYaz]

Celo Governance Call 1
When: Friday, November 6th, 2020, 5 PM UTC/12 PM EST/9 AM PST, 60 minutes max
Where: Celo Zoom Event (Instructions on joining found in the calendar event below)
Calendar Event: Add to your calendar here
Focus: Discussing Governance Proposals and understanding the motivation behind them with the community

Agenda

• Governance and CIP Announcements
• CGP-14 cUSD Rewards
• CGP-15

Please post all relevant proposals below that should be discussed and evaluated

[alchemydc]

Greetings @YazzyYaz . Could you please add CGP-15 to the agenda for discussion during the call? Also FYI, here's a link to the PR.

Thanks!

DC

[hqueue]

@YazzyYaz It seems time is inconsistent between UTC and EST.
Is 4 PM UTC correct? Then it will be 11AM EST and 8AM PST.

[YazzyYaz]

@hqueue I moved the UTC time to 5 PM on the description. I believe this is due to daylight saving time. It's still 9 AM PST. The calendar invite is the best way to keep track of it :)

[YazzyYaz]

Meeting Notes:

Yaz: Welcome to Governance call. Core Contracts Release 1 to be submitted next week, will share timeline on mailing list. CIP process activated yesterday. With that, let’s kick off with CGP-14.

Asa: idea is to reward early adopters of celo dollars. Mission is to build financial system and build prosperity for everyone. Best able to succeed when theres a vibrant community present. Value of protocol is able to accrue via participation. Best way is via further enabling value of the protocol. Merkle distribution to early adopters. Early hypothesis. Biweekly. Equivalent of 6% annual. Not ready for on-chain governance yet. Would like feedback.

Viktor: question. How do you review how others have done this? Analysis done like with paypal. Attack vectors? How do you defend against them?

Asa: not focused on product angle, more on community growth and alignment. More broad. Valora is main avenue for user interaction with Celo. We don’t know exact number for bringing on users. Criteria for future distribution are geared towards that user and community growth. On attack vectors, main attack? Sybil resistance in several places. 3 attestations for your phone number but needs to be more. Reward as a percentage of cusd. There’s protection in attestation service against void phone numbers.

Viktor: Flavors similar to this type of distribution. Some things useful is making people work for it. Otherwise they accrue it and don’t care and dump it after. Happy to talk about how other protocols have done this. Won’t make much difference in people’s lives with small amount of rewards, needs

Marco: working on UBI, interesting experiment to understand microcredit which aligns with our mission.

David: Attack vectors need to be studied more. We need lesser amount to experiment more. 40k users is significant work and is a great scale and developing that user audience.

Asa: 700k is cap. Not initial distribution.

Yaz: In the interest of time, let’s continue discussing async. Action items are in regards of attack vectors need to be studied more, and ways to mitigate against them. Also determine what the right amount of number is for initial user.

Dee: any reason to choose CELO and not celo dollars.

Asa: idea is celo owners are more aligned to participate in network
Viktor Bunin: I think if we want to make them stakeholders in Celo’s success, we should give more CELO to true believers
. So they are empowered to spread the word, attract other users, write content, encourage local businesses to adopt it, etc.

Yaz: Let’s move on to CGP-15

David: COO from ECC. Zksnark in Plumo for Celo, and Zcash is based on zksnark. Explore adding Zcash to the Celo Reserve. Mission alignment with celo. Lots of Celo BTC ETH and DAI. More risk of DAI cause of reliance on layer 1 ETH. Zcash has no shared similarities with ETH on layer 1. ECC started as a for-profit, now nonprofit, meaningful move for the decentralization. Separately brought zcash into the world. 20% of issuance for ongoing development to Major Grants Review Committee. Regulator concerns on scrutiny on so called private coins. US Government requires encryption. Zcash being a privacy coin will be absurd. Gemini allowed support for withdrawing zcash using zksnark. Proposal suggests small percentage of reserve to be diversified, with crawl, walk and run.

Airat: As I know Japan has already banned such anonymous coins, and I think many countries consider Japan as a pioneer in cryptocurrency regulation, like an example to follow.

Josh Swihart: Japan hasn’t officially banned anonymous coins - that is a misperception. It’s more complicated than that. I’ve been spending a lot of time with the regulators there.

Marek: Distribution question. Curious how you came to the allocation method you are proposing. Also how correlated is it to other assets in the reserve. Advantage is adding assets that are uncorrelated and advantage of having reserve is overcollaterized.

David: Distribution hedge against technological connection between eth and dai on on layer 1. Celo might be impacted by issues on eth layer 1 upstream. No conviction on distribution, will leave to Markus or clabs team. Correlation, haven’t looked much. Tightly correlated with other coins and volatility correlations. Action item to provide correlation of Zcash and other asset report.

Marek: Community fund question. Fair amount of ZEC allocated to dev reward from blocks. Curious if you can propose allocating a small amount of funds to this proposal. Cofunding this proposal together so to speak.

What impact be around end users. Starting amount small to start the proposal.

David: Major Grants Fund will rename to be inclusive on non-grant stuff. Not member of committee, can’t speak for them. Hudson Jameson is member and on the seat and thinks highly of Celo. If I’d want to propose to committee, I’d also fund more interoperability between celo and zcash. Someone should propose.

Martin: Thinking about use case of making anonymous transaction from celo to zcash and back via a bridge? Privacy layer for celo users?

[YazzyYaz]

Link to the call: https://youtu.be/Z6PsB4cYLEo

[mandril1]

How to be " Early User "? what should I do?