Curve governance votes on $6M team funding proposal
The decentralized autonomous organization (DAO) community governing Curve finance is currently in the process of approving a 21 million CRV (equivalent to about $6 million) 1-year funding proposal from Swiss Stake AG, the lead development team behind Curve Finance. The team is headed by Michael Egorov, the founder of the protocol. In order for the proposal to pass, it requires a quorum of 30% of all vote-escrowed CRV (veCRV) and a majority vote in favor. As of Friday at 2:00 pm ET, the votes cast amount to 28.55% of the total, with nearly 100% favoring the proposal.
Initially, there was some resistance within the community regarding the proposal due to a lack of clarity regarding budget allocations, CRV token management, and the implementation of protective measures such as vesting tied to project milestones. In response to these concerns, Egorov has updated the proposal with more detailed information. The revised proposal outlines that the requested funds, totaling 21 million CRV, will be allocated towards developing key technical features, including scaling supply sinks for crvUSD and improving foreign exchange pools.
Instead of receiving a lump sum, the tokens will be vested over a one-year period to a smart contract and staked with major liquid locker projects like StakeDAO, Convex, and Yearn. The Curve DAO will have safeguards in place to intervene if necessary. Egorov and the Swiss Stake staff are not required to abstain from the vote, and together, they hold up to 15% of the veCRV.
Swiss Stake AG commits to producing biannual reports detailing the use of funds and the progress of ongoing initiatives. They also plan to enhance the user interface and governance site, with all related code being open-sourced.
According to Egorov, this funding proposal has been in development since the end of 2023, prior to the completion of the initial vesting of 900 million CRV (30% of the total supply) that was distributed over four years. Egorov’s personal holdings of CRV were used as collateral in DeFi protocols backing stablecoin loans and were liquidated in June when the price of CRV reached an all-time low. Despite this setback, Egorov remains motivated to work on the project, as he still holds a significant amount of locked CRVs and earns system fees from them.
The voting period for the funding proposal is ongoing, and the final results will reveal how much veCRV from Egorov and other members of Swiss Stake AG voted in favor.