Dear Celo and Mento Community,
Over the past few months, there were numerous community discussions about a potential Mento-specific governance token - a digital asset that could play a pivotal role in further supporting mission-aligned stablecoin use cases on the Mento protocol. This post aims to provide you with an overview of the main themes of these discussions and seeks your feedback on the proposed direction.
The primary objective of the Mento platform is to furnish entrepreneurs with a technological foundation for creating and managing stable digital assets that align with mission-driven use cases. The introduction of the MENTO governance token could advance this objective in three significant ways.
Firstly, it would grant access to a tailored governance structure that specifically caters to the unique needs of the Mento platform. Presently, Mento operates under Celo governance, which makes every decision on the Mento platform, even minor parameter adjustments, subject to Layer-1 governance. This places an undue burden on the Celo governance process, leads to inefficiencies, lacks focus, and hampers efforts to establish Mento as a fully independent protocol. A MENTO governance token would enable community members directly affected by governance decisions to voice their preferences more effectively and efficiently.
Secondly, it would allow for a redistribution of Mento-specific voting power from CELO whales to smaller CELO stakeholders, as well Mento stablecoin holders. To accomplish this, a MENTO token Airgrab with claimable amounts that are concave (think of the square root) in past CELO and stablecoin balances was proposed. Such a redistribution of voting power would encourage even broader participation from members of the Celo and Mento communities of all sizes, ensuring that decisions about the Mento platform are made collectively and represent the diverse perspectives within our community - especially the ones of the stablecoin holders which are not necessarily reflected in the current governance setup.
Lastly, a MENTO token would play a vital role in ensuring the self-sustainability of the Mento platform. MENTO holders could directly influence how the value generated by the Mento platform is used for its ongoing growth and development, thereby allowing the Mento platform to remain secure, decentralized, robust and capable of supporting the many products built on top of Mento - like Opera’s cUSD-based MiniPay and eXOF of Dunia, to name some more recent ones.
For the above reasons, it appears that launching a Mento-specific governance token would be valuable. The collective wisdom of the Celo and Mento communities in shaping the future of Mento is critically important, so please share how you feel about the overall direction. Additional discussions and brainstorming sessions on details of this proposal are upcoming on future Celo governance calls as well as Mento AMAs and Mento community calls.
Cheers and best,