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Governance Process
Learn more about the Euler Governance process
Introduction
On-Chain governance, allows unique features such as delegated voting and proposition powers, as well as protocol (and governance configuration) updates via a time lock executor. This ensures the protocol can adapt to evolving market conditions, as well as upgrade core parts of the protocol over time.
On the other hand, for off-chain governance, there is no code to review or implement as such. It is mainly a call for the Euler Foundation to carry out an action. Issue a grant, or pay a bill, for example. Thus mainly used to aid Euler in making difficult decisions in collaboration with the community.
General Governance Process
The general flow for the on-chain governance process is proposed as follows: Creation of a formal Idea/Proposal on Governance forum for discussion → eIP (Euler Improvement Proposal) creation on Governance forum by forum moderator → eIP created on Tally (on-chain proposal creation) → On-Chain Voting (and Execution on target Euler protocol smart contract if successful).
The general flow for the off-chain governance process is proposed as follows: Creation of a formal Idea/Proposal on Governance forum for discussion → Proposal created on Snapshot (off-chain proposal creation) → Off-Chain Voting (and Execution of proposal action by Euler Foundation if successful).
It is noteworthy that not all off-chain proposals that are either binding or non-binding on the protocols smart contracts will end up having an on-chain proposal depending on the outcome of the off-chain 'gas-less' voting and for gas cost savings. On the other hand, not all on-chain proposals will require an off-chain counterpart.
Depending on the outcome of an off-chain voting process, an on-chain proposal might be created which will be executed against a target protocol smart contract if successful.
If an off-chain proposal requires an on-chain proposal that will be executed against a protocol smart contract, then the general flow could be as follows:
Creation of a formal Idea/Proposal on Governance forum for discussion → Proposal created on Snapshot (off-chain proposal creation) → Off-Chain Voting → (if on-chain governance is required) eIP (Euler Improvement Proposal) creation on Governance forum by forum moderator → eIP created on Tally (on-chain proposal creation) → On-Chain Voting (and Execution on target Euler protocol smart contract if successful).
Idea
A great place to start a discussion on a potential governance proposal is the idea section on the forum website. If you feel confident that your idea is relevant to the community and is well-formulated, head over to the Governance Forum to begin a discussion with the community around your idea (following the process described on the forum).
Once a discussion / commenting begins around your idea, be proactive with the community and be open to suggestions. It typically takes a week for the request for comments to mature before it becomes an eIP.
Governance Proposal
If the discussion is well-formulated and the community has a clear understanding of the proposal and supports your idea, (for on-chain proposals) it will be moved by a moderator to the governance category as an eIP: Euler Improvement Proposal. Once the proposal has an eIP, an on-chain proposal can be created on the Tally governance dashboard.
A Tally or Snapshot proposal does not always need to be created by the original eIP author / proposer, it can be posted by someone else or by the core team in case the minimum threshold of EUL is not being met.
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