Reviving the SNS Framework: Addressing Current Challenges and Exploring Solutions

TL;DR: Reviving the SNS Framework

As SNS Management grantee, analyzing flaws (e.g., Neurons’ Fund pause via Proposal 135970) and proposing fixes for sustainability benefiting teams, participants, ICP network.

Core Vision

  • Purpose: ICP stock exchange for tokenized problem-solving projects with governance via staked tokens.
  • 10/10 Benefits: Teams compensated; investors gain value/rewards; network adoption.
  • Ops/Goals: Doxxed teams, milestones, R&D updates; endless evolution.
  • Neuron Fund: Bootstrap doxxed, open-source, network-enhancing projects.
  • Participant Rights: Vote to monitor/influence, ensure accountability.

Failures

  • Data: $80M raised (10.45M ICP); 11% left in treasuries ($9.3M / 2.97M ICP).
  • Issues: Misappropriation (FuelEV rollback, ICFC drains, Seers rugs), 51% attacks, DAO wars; 90% benefit only teams. Exceptions: Kinic.
  • Roots: Weak safeguards, misaligned incentives, no accountability, economic vulnerabilities.
  • Impacts: Teams distracted; locked failing investments; network shrinkage.
  • Cycle: Death spiral from depletion; fails DAO decentralization/autonomy.
  • Trajectory: Runway ends in 6-12 months (e.g., ICPSwap bankruptcy ~Apr 2026); no treasury inflows.

Solutions

  • Autonomy: Treasury Manager auto-8Y neuron for perpetual canister power (YAML cycles; NNS changes only).
  • Balancer: Toggle for fee loops, outflow modes; TGCH-enhanced analyzer simulations.
  • Balance: Fee splits (80/20 investors/treasury); milestone funding, NNS refunds on failure.
  • Neuron Fund: Accelerator mentorship at DFINITY, guided resources (no direct cash).
  • Protection: Share classes/Voting Manager limit early exploits, depreciate post-milestones.
3 Likes