Ethena Labs Research has officially submitted a proposal that suggests that the number of voting members on the Ethena Risk Committee be reduced from five to three ahead of the committee’s next election.
Supporters of the proposal believe that reducing the number of members that make up the Risk Committee from 5 to 3 would provide several productivity and operational benefits.
The proponents are convinced that the three members would make a leaner and a much more efficient committee. They believe this will afford each member a clearer view of the specific areas they have a domain over, which could ultimately encourage more proactive engagement across proposals and boost accountability.
“For example, one member can oversee Ethena’s DeFi lending exposure, one member can oversee Ethena’s Reserve Fund and redemption requirements, and another member can oversee Ethena Protocol/Partner integrations and backing assets,” the proposal reads.
Defense for the proposal
According to the Ethena Labs proposal, the way things stand, the committee and its five members are spread across multiple risk categories, but they lack ownership over any specific area. That would be different with a smaller team, as they would be able to ensure no tasks go unattended by members who wrongly assume another member will handle it.
The proponents of the proposal also believe a smaller team means the Ethena Foundation would find it easier to increase member compensation considerably. This is expected to enable members to dedicate not just time but also resources to governance and risk.
“Several members have expressed a willingness to hire Ethena specific team members and build Ethena-focused public resources such as dashboards and simulation tools if they had more budget to work with,” proponents claim.
They acknowledge that the sub-committee structure was successful in helping to distribute work; but that a leaner group with well-defined responsibilities will ultimately be more effective in ensuring an equal workload between members.
“With 5 members, it was often the case that one or two members would handle the majority of the work as they were across multiple sub committees,” they claim.
What the new committee would look like
The proposal will need a majority vote from ENA and sENA holders to pass, but if it does, the usual election format would follow this vote, and start seeing ENA holders elect the 3 voting members of the Ethena Risk Committee.
Ethena Labs Research will reportedly be excluded as an option from the vote and will continue to act as a non-voting member in an advisory capacity to the Committee from here on out.
However, if the proposal doesn’t pass, ENA holders will move forward as they used to, electing 5 voting members to the Committee as opposed to three.
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Source: https://www.cryptopolitan.com/ethena-proposes-cutting-risk-committee/
