by 0x87956abc4078a0cc3b89b419928b857b8af826ed (Nacho)
Linked Draft Proposal
Should VP keep assigned to the landowner in a LAND Rental transaction?
Summary
Formalize the mechanism to assign Voting Power in a LAND Rental transaction making sure the VP stays assigned to the LAND owner wallet and it’s not lost or assigned to the renter in the transaction.
Abstract
This proposal promotes to the next governance stage the outcome decided by the community on the previously published poll regarding Voting Power assignation in the new LAND Rental protocol being built by the Decentraland Foundation.
Motivation
Currently, there are multiple LAND Rental protocols created by the community but by using them, every time a LAND or Estate is rented, a smart contract functions as the escrow of the asset. Therefore, the asset owner is the Rental smart contract, and that Voting Power (VP) gets “lost”. In other words, that VP will be assigned to the Rental smart contract who cannot possibly vote or do anything on the DAO. We need a strategy to assign the VP to the renter’s wallet to fix this. We need to ensure that in the ideal case of renting is a widely used strategy in the Decentraland ecosystem, the circulating Voting Power is not retired from circulation.
Specification
The Decentraland Foundation has already created a Snapshot strategy to keep the VP as the owner of the LANDs and Estates.
The way this would work is that whenever a rental starts and the NFT is transferred to the Rentals contract, a new entity in the Rentals subgraph is created called RentalAsset that keeps track of the lessor (original owner), the contract address, and the tokenId of that NFT, as well as whether the NFT has been claimed back from the contract.
Given a list of user addresses, the strategy first queries the Rentals subgraph to obtain all RentalAssets that have the provided addresses as lessors. For example, if the list contains User 1 and User 2, it will look for all RentalAssets where User 1 and User 2 are lessors.
For the rental assets that correspond to Lands, the strategy will give VP for their lessors determined by the multiplier determined by configuration. For example, if 5 of the obtained rental assets are Lands where User 2 is the lessor, User 2 will be given 5 * multiplier of VP.
An extra step is required for the rental assets that correspond to Estates. As VP for Estates is determined by the size of the Estate, we need a way to obtain that information, as the rental asset does not provide it.
So for each rental asset that is an Estate, the strategy will query the Marketplace subgraph to obtain their sizes, once the data is obtained, the strategy will give VP for their lessors determined by their sizes and a multiplier determined by configuration. For example, if User 2 has 2 rental assets that are Estates that both have 10 Lands each, User 2 will be given a 2 * 10 * multiplier of VP.
You can check the strategy here
Impacts
LAND and Estate owners will keep their VP to vote on proposals while renting the asset.
Implementation Pathways
The strategy is already implemented. You can take a look here to the code
Conclusion
LAND Rental is fundamental for the Decentraland ecosystem because it will allow content creators and Metaverse builders to get access to LAND without having to buy it. By making sure the reference rental protocol created by the Decentraland Foundation does not reduce the circulating Voting Power in the DAO we are strengthening our governance mechanisms
