Introducing: JOE Governance

Vote to open new Liquidity Book Markets

JOE token holders may now participate in protocol governance, voting for new Liquidity Book pools. This is an important step in achieving Trader Joe’s vision of a decentralized future, where community stakeholders have input in the creation of new markets, helping to shape the success of the Liquidity Book AMM. 

TLDR 

• 1 JOE Token = 1 Vote

• Governance can vote to launch new Liquidity Book Markets. 

• New Markets must be paired with a designated Quote asset (highlighted in the below table).

• New Markets voted in successfully will have the Market Parameters determined by the Trader Joe Core Team.

What is voting for? 

Liquidity Book is Trader Joe’s novel AMM, with improved capital efficiency, reduced slippage and volatility adjusted dynamic fees that mitigate the impact of Impermanent Loss. Find out more information on Liquidity Book here.

Introducing: Liquidity Book

JOE Governance will initially be used to determine tokens pairs that will be added to the Liquidity Book 'base assets list'. Adding a Token to the 'base assets list' can also result in the deployment of a Liquidity Book Market, if outlined in the Governance Proposal.

Types of Proposals

• Vote to add a new base asset

• Vote to add or combine a base asset with a quote asset

Governance will not be able to vote on new quote assets or market configurations of new Liquidity Book Pools. This will be decided by the core team to ensure that only healthy and viable markets are opened.

Asset List

Examples of Voting

I can vote on:

1. Pairing JOE (base asset) with AVAX (quote asset)

2. Add JOE to the base asset list

I cannot vote on:

1. Add JOE to the quote asset list

2. Open JOE (base asset) with BUSD (base asset) market

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How to Vote

The Governance process will comprise four main stages:

1. Proposal and debate

2. Temperature check vote

3. On-Chain vote 

4. Finalisation 

Proposal and Debate: Minimum of 48 hrs

All proposals will be made in Trader Joe’s discord using the ‘Joe Forum’. Anyone can make a proposal as long as they are a Trader Joe discord member. 

Proposals will be debated for a minimum of 48hrs, ensuring that interested parties have the ability to make an informed decision before going to an informal temperature check vote. To make a proposal for debate, copy and paste the format (below) into a new forum post. Remember the more detail you give, the more robust the discussion will be. 

Proposal Format 

All proposals made must follow this set structure outlined below:

• Title:

  • EG: JP-1 Open JOE-USDC Market

  • EG: JP-2 Add JOE to Base Asset List

• High Level:

  • Brief summary of why this proposal is being raised, with any relevant insight and information as to why this would be an ideal market to open on the Trader Joe decentralized exchange.

• Specifications:

  • Asset Confirmation:

    • Is this Asset on Avalanche or Arbitrum

    • Confirm Token name, tag and contract id

    • Link to Coingecko or CMC page

    • Link to Token Contract on relevant Explorer

  • Tokenomics:

    • Detail tokenomics of the suggested base asset

    • Detail emissions schedule (where feasible)

• Summary:

  • Summarise proposal and add any additional concluding thoughts

Eligibility

Proposals raised will be rejected if the following criteria is not met:

• Proposed Asset for a new Market has less than $100k in an existing Liquidity Pool on the Trader Joe platform (V1 Market)

• Proposed Asset for a new Market has a ‘Token Tax’ feature

Temperature Check Vote: Minimum of 48 hrs 

Before escalating the proposal to an official on-chain governance vote held on Snapshot, an informal vote will be held in the Joe Forum where the proposal was made. The only requirements for this vote to be passed, will be for the vote to have at least 25 discord members participate.

Unless the vote is overwhelmingly against the proposal, it does not matter what the outcome of the temperature check vote is, only that there is sufficient interest to take it to a governance vote. If after 7 days the proposal has not met requirements it will be removed from consideration for a cooldown period. 

An example of a Joe Forum vote is as follows…

Title: JP-1 Open JOE-USDC LB Pool
Vote: For, Against or Abstain*

*Abstain means that you think the proposal should be voted for on-chain, but have not yet made an informed decision in either direction.

On-Chain Vote: Lasts for 5 days

Official governance votes will be held on Trader Joe’s Snapshot page. Once a proposal has passed the temperature check, the proposal will be deployed onto Snapshot where the official on-chain binding vote will be launched. Proposals will have a one hour delay timer before officially starting, with votes lasting for 5 days. To vote on the proposal, you will be able to connect your wallet to Snapshot and use your JOE to allocate votes 1:1. Voting on snapshot will not spend your JOE tokens. 

If you transfer your JOE tokens out of the address you used to vote during the 5 day voting period, they will not be counted. If this is an issue, consider voting in the final hours of the vote. 

In order for the vote to be ratified, a quorum of 1 million JOE must be reached. Finally, a vote will need to pass the 50% + 1 vote threshold in order for the proposal to be officially actioned. 

Snapshot Link: https://snapshot.org/#/joe governance.eth 

Finalisation

Once a proposal is successful the Core Team will take action at the next available Wednesday. If a proposal has failed, there will be a cool down period of 7 days before a proposal can be resubmitted. 

Conclusion 

This is Trader Joe’s first official commitment to community led governance, utilizing the JOE token. We will look to include veJOE in future governance processes when appropriate. If you have any questions please visit Trader Joe’s discord and speak to a moderator.