We are excited to announce that Kwenta's transition to independence has formally kicked off. In an earlier article, Kwenta Independence, we discussed why the transition is happening but only scratched the surface of how the transition will take place. In this article, we will outline the next steps to complete the transition to independence.
Since Kwenta is currently a component of Synthetix, the decision to convert it into an independent protocol will need to be handled by the Synthetix governance framework. This involves submitting Synthetix Improvement Proposals (SIPs) to the Synthetix Spartan Council where a vote will be held to determine if a given SIP will pass or be rejected. If a proposal is passed, the protocol implements the change outlined in the proposal.
To complete the transition to independence, the Kwenta community will submit three SIPs to the Spartan Council:
SIP #1: Kwenta Independence
Before any other proposals can be introduced to the Spartan Council, an SIP proposing that Kwenta separate from Synthetix to become its own independent protocol must be voted on. This would be a binary vote; if the minimum amount of Spartan Council members required to vote in favour of the SIP is reached, Kwenta will continue to move forward with the transition. The motivation behind this proposal comes from Kwenta's lack of resources while under Synthetix management. By giving Kwenta the freedom and financial fuel to execute on its community's vision, Kwenta will gain the momentum it needs to compete as a top DeFi trading platform.
SIP #2: Kwenta TreasuryDAO
Although many protocols choose to decentralize their treasury down the road to gain additional flexibility early on, Kwenta will be a completely decentralized protocol from inception and the treasury is no exception. In this SIP, the Spartan Council will select three community members they feel are the best individuals to manage the TreasuryDAO while Kwenta governance is being built. The individuals selected to govern the Kwenta TreasuryDAO will be responsible for managing funding, providing incentives for growth campaigns, and handling payroll for Core Contributors as well as any other paid community roles that are introduced to the DAO.
SIP #3: Kwenta Interim Council
The final SIP involves the assembly of a temporary governing body that can make decisions for the Kwenta protocol until the Kwenta community has a governance system in place. The Kwenta community will be provided with a Ballot Box where anyone can put their name down as a potential interim council member. Spartan Council members will each select their top five candidates from the list and the candidates with the most support from Spartan Council members will make up the Kwenta Interim Council.
On August 26th at 17:00 UTC, the Kwenta community will host its first community call to discuss the transition to independence and the future of Kwenta. Kwenta Core Contributors will share the potential governance structure, tokenomics, and staking mechanism that will be used to facilitate the Kwenta protocol. Additionally, details about how Kwenta community members can apply to become a Kwenta Interim Council member will be shared.
For the full details on the first Kwenta community call, check out the official announcement.
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