Polygon users want to participate in PoolTogether governance. Soon we’ll be launching on Avalanche, and those users will want to participate as well.
POOL tokens that have been bridged to Polygon do not have any voting power. This is because tokens that have been bridged are held in the Polygon token bridge contract; their voting power cannot be delegated.
We chose to use the default token bridges because it’s a simple no-code way to bridge ERC20 tokens to another chain. We saved a lot of development effort.
Here I present a new strategy to enable Snapshot voting across all L1s and L2s.
We want to delegate the voting power of bridged POOL tokens and still use the default token bridge tooling. The tooling saves us a ton of time, and will make adding new chains and L2s much easier.
We can do this by introducing a POOL wrapper token called sPOOL:
- Users deposit POOL into the sPOOL contract on Ethereum, and get sPOOL 1:1 in return.
- Governance delegates the POOL held by the sPOOL contract to a multi-sig
- Users signal their votes for proposals through Snapshot, and the delegate votes accordingly.
If we bridge and promote sPOOL across all chains, then users will always be able to participate with free voting.
- Simple wrapper: sPOOL = POOL
- Easy to bridge; we can use existing token bridge code
- Free voting
- Centralizes voting control in the delegate.
- People may still buy POOL, so we may need to provide a swap app or liquidity.
- Since we are introducing a derivative, should we add more features, like interest? This means it won’t trade 1:1 but people will want to hold it.
I believe putting sPOOL tokens on all chains will allow us to engage with POOL holders everywhere. Their votes will have concrete voting power. While users may still trade POOL, we can create a simple sPOOL <-> POOL swap section in our app.
I’d like to hear everyone’s thoughts on this.