Infinex governance retake

Kain recently published a reassessment of Infinex's governance structure in his blog post,  Infinex Governance Retake. His analysis covers the failures of early DeFi governance, the importance of simplicity, and a new approach to token holder rights. Read on for key insights from his proposal, or read the full blog post here.

The failures of DAO governance

Kain doesn't mince words about the current state of crypto governance: "We have clear evidence that DAO governance and other forms of governance by committee, in general, are absolutely diabolical."

He points to how many successful founders handed control to committees, "for both ideological and regulatory reasons," noting that "Saying this grand experiment has gone poorly is being generous."

Wide input, narrow execution

Drawing from his experiences with Synthetix, Kain proposes a different model: "We want wide input but narrow execution."

But, he distinguishes between input and execution: "Feedback, ideas and critique are necessary but woefully insufficient for a project to succeed. You also need people with a mandate and the ability to decisively execute on these ideas."

Simplicity and addressing revenue 

Kain's proposed governance structure:

• A 50% net majority requirement of Patrons voting to enact the new governance system
• Delegate project decision-making to a project lead
• All revenue after any direct costs, such as incentives or rebates, must be used for token buybacks
• The platform must remain non-custodial
• Modifying governance requires adaptive quorum voting
• Replacing the project lead with a majority vote by Patron holders
• Quarterly reports on token buybacks and sales as described below

The path forward

As Infinex approaches TGE, this governance framework provides clarity for all stakeholders about how decisions will be made and how value will flow. Check out all of Kain’s blogs here.