Venture capital firm Andreessen Horowitz (a16z) is seeking token delegate applicants for its decentralized finance (DeFi) investments, which include the decentralized exchange Uniswap and lending protocol Compound.
According to the application, a16z is also seeking delegates for its stake in decentralized derivatives exchange dYdX and stablecoin platforms Maker and Fei.
Token delegation is a process in decentralized finance whereby the holder of a governance token outsources its corresponding vote to a third-party, reducing the voting power held by early investors and founders. The process also allows those more informed or more active in the protocol’s governance to have a stronger voice. However, the original holder would retain their ownership – and economic interest – in the token.
Applicants will be graded across nine metrics, which include commitment to the protocol, subject matter expertise, diversity of perspectives and other criteria. A16z will score prospective delegates on a scale of 0-2 for each category, with a maximum possible score of 18. Generally, candidates with a minimum score of 13/18 or higher (over 70%) advance, according to an example rubric of the current Uniswap delegates.
A16z, which runs three cryptocurrency funds managing over $3 billion in assets, has increased its effort to address governance and regulatory issues associated with its cryptocurrency investments.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.