HIP 7 - Commercial Real Estate ($CRE1p) as Collateral

Proposals
22

  • Transparency vs. Trust: If detailed information isn’t shared for informed voting, the essence of decentralization is lost, making the process akin to a binary trust exercise—trust or don’t trust the leadership, in this case, Doug or the labs team.

  • Essence of Participation: The lack of comprehensive data on proposals undermines the community’s role, reducing it to a mere formality for tax or regulatory compliance, rather than an active part of decision-making.

  • Centralization Concerns: Withholding information centralizes power, contradicting the decentralized ethos of blockchain and DAOs. It’s as if decisions are pre-determined by a select few, with the community’s vote serving as a rubber stamp.

  • Call for Change: Moving forward, a shift towards full disclosure is necessary. Each vote should come with complete transparency, ensuring every participant has access to the same level of detail as the proposal creators.

  • Building Trust through Clarity: Genuine trust stems from clarity and openness, not from a position of authority. If we’re to back decisions confidently, we need all the facts laid bare, ensuring our contributions are meaningful and impactful.

These points highlight the critical need for a transparent, informed decision-making process, challenging the current approach and advocating for a structure that respects and utilizes the community’s collective wisdom and insight.

23

This reads like a ChatGPT generated comment that doesn’t engage in the actual dialogue that was happening. I’m just imagining you chanting “Transparency! Transparency! Transparency!”

Some quick questions I’d like to understand the answers to:
Have you actually read the legal docs?
Do you understand the role of our designee?
Do you understand our framework for RWAs?
Do you understand the role of our lending partners?

Do you disagree with our whole framework? or just parts? Which parts?
Give an example of what you expect to see if we were to do this process over again.
Are you advocating to farm out underwriting of each loan to token holders?
Are you familiar with how MakerDAO approaches RWAs?

1 Like
24

Doug, I’ve gone through the legal docs and understand the roles and frameworks we’re discussing here. What I’m asking for isn’t about doubting our structure or needing to micromanage every detail. It’s about striking a balance between confidentiality and the level of transparency that allows us to make informed decisions. Like with the Volkswagen, knowing specifics like condition and potential doesn’t breach privacy but builds confidence. Given the shifts in commercial real estate, more insight into what we’re backing helps us understand the risk and opportunity without stepping into the day-to-day. I get the legal side and MakerDAO comparisons, but we’re not them; we’re charting our own path. Let’s find a way to keep the community informed and engaged, ensuring our decisions are as solid as the foundation we’re building on.

Certainly, addressing each point directly can help clarify your stance:

In response to the questions:

Yes, I’ve thoroughly reviewed the legal documents, which lays a solid foundation for our discussions.

I grasp the role of our designee clearly; however, my point of contention lies not in the structure but in the essence of trustlessness that drew us to crypto initially.

Understanding the framework around Real World Assets (RWAs) and the critical role of our lending partners is not in question.

My disagreement isn’t with the framework as a whole. Instead, it’s about the depth of information provided for making informed decisions.

Specifically, I believe disclosing the quality of the building, vacancy rates, profit and loss statements, and our position in potential foreclosure scenarios could enhance our decision-making process without compromising privacy or integrity.

These insights would not only bolster confidence in the choices we make but also align with the transparent, informed decision-making ethos we strive for. It’s about ensuring our governance tokens represent more than just a vote; they symbolize our collective insight, judgment, and commitment to the project’s success.

25

p.s. and anyway I lost. People voted and they are clearly content with the limited information that they received. I’m in the minority so what I’ve brought up here is kind of a moot issue.

26

Thanks for taking the time to share, this was much more helpful and constructive. I think the struggle here is that as I look ahead, I see that we are going to be getting less specific on the individual deals being approved and more defined on what the DAO set’s as the requirements that must be met for lending partners to be allowed to to extend protocol sourced liquidity to their customers.

So what this will evolve into is a proposal that looks something like Finance Ventures has XXX amount of credit it can extend to customers that meet the following commercial real estate criteria:

  • XXX Occupancy Rate
  • XXX LTV
  • XXX Positive Cash Flow
  • No other debt / liens
  • etc.

Or it will look more like a formula like you need XXX points to qualify and you get x amount of points for meeting specific criteria and so there’s flexibility to onboard assets that are at different stages of development or have variance in circumstance.

Anyways, I’m just trying to set expectations that we will have less information not more going forward, but we should be able to position ourselves to be more protected not less, even though we won’t have insight into the specifics of the actual collateral being used.

1 Like
27

This may be true, but it’s worth it to see what improvements we can make and help the community feel and be heard.

1 Like
28

yes, please and thank you. Not looking to be difficult; those points that you mention would suffice.

29

Its not that -you lost- so the discussion is moot. Simply because you had the discussion, we as a community were able to see and potentially help shape a future framework for RWAs. It would be nice to see similar disagreements on things that would ultimately make HIFI better.

1 Like
30

Thanks Bro; appreciate you saying that.