What else should we be thinking about?
Radical Notion - Allow regulator to be “delegate”
If we consider the voting blocs to be akin to a functional electoral college, there is one class that is conspicuously missing … regulators.
Reasoning
- As treasury starts to take shape, a legal structure will emerge which cannot escape existing FATF rules and many hope Uniswap aims to be law-abiding, || even if certain tokens are alegal at the moment (see the section on pg2 I wrote for Wyoming) ||
- If Uniswap DAO wants to go down the path of self/co-regulation, then you need a way to negotiate with regulators to assure them that regulatory equivalence is mutually desirable goal but without the onerous burdens (and SecOps risks)
- It is easier to familiarise competent authorities with the principles and ethos of Uniswap DAO via the proposal/temp check than in adversarial setting … || Ideally moving towards a no-action letter on the mechanism of UNI as a non-economic governance token ||
Regulators as Delegate
- nothing in the rules against this … If pick 5 jurisdictions each with 500k UNI they’d still need a seconder to get the 1M threshold to make formal voting proposals
- legitimacy is in the eyes of the beholder … good faith bargaining allows for alignment with public policy such as addressing asymmetric information which leads to fraud
- building in protocols such as computational forensics for evidence recordat allow for dispute resolution such as binding arbitration which can be enforced via existing legal system
Rational - want Robocop not Rambos
The adversarial legal mode is not appropriate for DeFi as it pits a centralised top-down control&coerce against scattered individuals. An alternative inquisitorial mode, akin to international aircraft crash investigation which aims to determine root-cause of failure and not fault-finding allows for course correction whilst preserving jurisdictional neutrality (if diverse regulators agree to be delegates). There are some darknet state-actors which are outside commercial sphere so rather than relying on self-help which can lead to … extreme outcomes … better to build bridges rather than barriers. If investors want safeguards, then they would vote in favor with the regulator delegates for any reasonable proposition.
#insert humor (Directive #267)
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