Draft: Mango Labs
tldr - I am requesting $1.5m for 6mo and 100m MNGO locked for 4 years
Hello members of the DAO, I’d like to introduce Mango Labs and a request for funding. I’ll describe some of the motivations behind it and the structure. I’ll also go on a long rambling essay about my thoughts on a lot of different but related subjects. Apologies.
The first motivating problem is around financial security for developers. While the initial squad of developers were willing to work for governance tokens, it’s not a model for sustained development. Many developers working with us have constant USD denominated liabilities and need some constant source of income. Because of this, they’re unable to quit and do Mango full time.
Another problem we face currently is lack of consistency/reliability. There are a lot of part time devs who contribute great work. They should and will be rewarded, but most of these can only be one-off contributions. For the highest value tools, it requires some sort of maintenance (at least in the beginning, until they are further decentralized). If we can’t rely on someone to be here tomorrow to answer questions about the tool, we can’t plan as effectively.
Finally–and I think this is the most important point–is the issue of good decentralization. It is critically important that voting power is spread among a diverse group of users and contributors. In our original litepaper, we wanted to get 2bn MNGO outstanding with 1bn being held by the foundation to develop the DAO and do liquidity incentives. Since the tech for the DAO existed in August, we decided to ditch that plan and go full DAO from the beginning.
But I think the 2bn MNGO is still a good target. We shouldn’t just dump it all in liquidity incentives in a rage of short termism. We also shouldn’t just distribute another 1bn MNGO for no reason at all. I think we should hand it out to people who have demonstrated their commitment to our protocol and shown an understanding of some big part of it. The tokens should also be locked such that the owner cannot sell but can still vote.
In my view, decentralization is primarily about censorship resistance. We should be extra sure that if the founding devs were hit by a bus or kidnapped by a malicious actor, the Mango DAO can just shrug it off. A big part of improving that kind of decentralization is having multiple people who have an intimate understanding of the code base.
I believe Mango Labs ameliorates all these issues. The organization can provide financial security for developers such that they can make Mango their career. It can provide accountability. And finally, it actually helps us decentralize by allocating MNGO and replicating the implicit knowledge in the minds of more people. This, along with Mango Labs’ commitment to decentralization and open-source, should help Mango become censorship-resistant.
I’m asking for funding of $1.5m for the next 6 months to help develop Mango Markets. After the 6 months, I will request a performance review of Mango Labs. None of the funding will go to me or Tyler (a cofounder in the project). None of the MNGO will go to us either.
The 100m locked MNGO is a very rough number. By default I’m inclined towards a 4 year locking period with an unlock every year. I could use some advice on this front.
Below are some proposed activities of Mango Labs. I am not saying we will accomplish all of these.
- Premier User Interface
- Easy onboarding to DEX world
- mobile app
- Allow users to trade on Serum dex using Mango’s MSRM
- Build good market making tools that will be open source and which we will use to provide liquidity to new markets DAO lists
- Help other market makers who are not used to dexes
- liquidator + market maker combo for capital efficiency
- Mango v4
- Have capacity for an arbitrary number of markets
- Decentralized keepers
- Oracle based, adjusting interest rates
This is a draft. So if you have suggestions on how to improve this plan, please chime in. This is not intended to be the only way to fund improvements to Mango. I think Max’s idea is also a good one. There are probably even better ideas we have to experiment with and tinker with to get the winning combo.