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24 min read • Published on 23 Feb 2026

Governance Review #85

Avatar of Manuel Gonzalez

Manuel Gonzalez

Governance Representative

Governance moves from planning to delivery.

Governance Review #85 publication thumbnail

TL;DR

In Optimism, governance finalized the 2026 Security Council Cohort A rotation. It opened applications for the Season 9 Grants Council, with a clear focus on deepening Superchain liquidity and increasing fee generation on priority pairs.

In Arbitrum, the ecosystem moved further into operational execution: Timeboost raised its reserve price, Entropy and OpCo advanced treasury strategy and internal buildout, MSS fund flows were reported post-handover, and the Watchdog program transitioned to USD-denominated bounties with a built-in downside protection floor.

In ZKsync, the ZKnomics staking pilot went live. At the same time, three major token proposals covering audits, bug bounties, and Association funding remain up for a vote, reinforcing a broader push to formalize security and governance infrastructure.

Elsewhere, Starknet discussed fee stabilization, proof verification upgrades, session key standardization, and validator delegation design; Polygon advanced the Lisovo upgrade set; Scroll introduced new governance research and multisig standards; Uniswap voted on multi-chain fee expansion; and Lisk paused DAO activity for strategic realignment.

Active Votes

Uniswap: 1 active vote

ZKsync: 3 active votes

Optimism

Optimism Onboarding Cohort A 2026

Optimism shared an update confirming that incoming Cohort A members for 2026 have completed all required Security Council rehearsals. The OPSC is executing transactions to rotate membership, removing two outgoing Cohort A members from 2025 and adding Velodrome and Cyfrin for the 2026 term.

The new Cohort A will serve a 12-month term starting in February 2026 and includes Agora, Velodrome, Cyfrin, and Pablito.eth, Mariano, the Uniswap Foundation, and Emiliano, following the governance vote approving the cohort.

Season 9 Grants Council: Applications Now Open

Optimism has opened applications for the Season 9 Grants Council, which focuses on growing Superchain adoption by deepening DEX liquidity and increasing trading fees on priority pairs.

Projects must target measurable improvements in either TVL in priority liquidity pairs or fees generated from those pairs. Eligible initiatives include liquidity incentive programs, vaults and automation strategies, routing and aggregation tools, integrations that migrate liquidity into priority pools, and analytics tooling that tracks performance.

Applications opened on February 11 and will close on May 20. The review process is expected to take around 15 business days from submission to final decision.

Arbitrum

Announcement of Reserve Price Change

Offchain Labs has announced an increase in the Timeboost reserve price from 0.001 ETH to 0.0075 ETH, citing observed market behavior and evolving participant dynamics. The adjustment was authorized under the Constitutional AIP that introduced Timeboost in March 2025 and is intended to preserve the integrity and efficiency of the auction-based transaction ordering mechanism.

Offchain Labs stated that further adjustments may be made as strategies evolve and that the team will continue monitoring the system to maintain competitive market conditions. In parallel, research efforts are underway to explore alternative designs that balance user trading experience with DAO revenue generation, with additional updates to be shared as that work progresses.

Entropy Advisors Monthly Update – January 2026

Entropy reported continued treasury activity in January, including finalizing 3.5K ETH staking via Etherfi, reallocating ~$3.6M from TBILL to USTBL, and adjusting liquidity positions on Camelot and Fluid. The 10M ARB covered calls strategy may be paused for review while an ETH-based version is expanded. The DAO also received 0.36 stETH from Lido revenue share.

DRIP Season One is closing with ~16.7M ARB distributed, as markets softened but select protocols like Morpho showed growth. A retrospective and Season Two details are expected soon.

The team also launched Arbitrum Analytics v0 for treasury tracking, advanced Stylus Sprint (57.5% of budget disbursed), extended the Code of Conduct through March, and reported 49 Watchdog cases to date, with ~498K ARB remaining in its working budget.

OpCo February 2026 Update

OpCo shared its February update, highlighting progress in hiring key roles (Legal Counsel, Director of Finance & Treasury, and Head of OpCo), along with continued operational buildout and weekly OAT coordination.

On the program side, OpCo has taken ownership of RAD, completed most KYC/KYB checks, signed agreements, distributed retroactive rewards, and received initial funding from the Foundation. The Firestarter pilot is now live, with 3 proposals accepted and more under review, while broader DAO engagement efforts included a delegate retrospective and upcoming ETHDenver activations.

Internally, OpCo finalized H1 OKRs and budget planning and continues to oversee Entropy-related treasury decisions, including the shaping of new incentive mechanisms tied to a 10M ARB allocation.

Arbitrum MSS Handover Reporting (Sep–Dec 2025)

Arbitrum published a token flow report covering September to December 2025, following the DAO decision to wind down the MSS and transfer payroll management to the Arbitrum Foundation. Of the seven original MSS initiatives, four remain active and are included in this report: Event Horizon, ADPC Security Subsidy Fund, Stylus Sprint, and the Delegate Incentive Program.

During the period, total deposits across the tracked wallets amounted to 22,500 ARB, while total withdrawals reached 2.38M ARB, mainly driven by grant payouts, committee compensation, and DIP-related payments. The Foundation also noted the recent introduction of an aggregator wallet to centralize outbound payments, aiming to improve operational efficiency and reduce the risk of duplicate transfers. A small number of Security Subsidy Fund audit payouts remain pending and will continue to be reported in future updates.

Watchdog Program: February 18th Bounty Structure Update

Entropy has proposed updating the Arbitrum DAO Watchdog Program bounty structure following a sharp decline in ARB’s price since October 2025. With the token’s 30-day moving average falling from around $0.43 to roughly $0.14, the effective USD value of rewards has dropped significantly. To address this, the committee proposes shifting from ARB-denominated payouts to a USD-based model, setting base bounties at $200 (Low), $1,000 (Medium), and $2,000 (High), while continuing to pay in ARB using the spot price at the time of payment initiation. A $0.08 floor price would cap the maximum ARB expenditure in the event of further downside.

The proposal also increases the recovery bonus from 10% to 15% for successfully returned assets and maintains the existing combined payout caps per severity tier. Importantly, the new structure would apply retroactively, with one-time top-ups for previously paid or pending reports that would have qualified for higher compensation under the updated model. The change aims to restore incentive alignment for reporters while preserving budget sustainability in volatile market conditions.

Everclear

RFC - Buffer Multisig Refill

SEEDGov submitted an RFC requesting a refill of the Buffer Multisig, which has been used to cover operational and service provider expenses despite token price volatility. While framed as a temporary, not ideal mechanism, the Buffer MSS is described as having worked effectively to honor prior commitments during periods of market volatility.

The proposal requests a top-up of 10M CLEAR to ensure continued coverage of volatility-related shortfalls. Past uses of the buffer include upfront payments to contributors and entities such as Creed, Karma, the Security Council, the Community SubDAO, and the Governance Task Force, with all transactions publicly available via the multisig.

L2BEAT’s Take

From our perspective, this refill is primarily a treasury management decision rather than a new spending initiative. If the DAO has already committed to specific budgets, ensuring contributors are paid in a timely and predictable way despite token volatility is reasonable. A liquidity buffer can serve as a practical tool to uphold those commitments without constantly revisiting compensation due to market swings.

At the same time, the long-term legitimacy of such a mechanism depends on transparency. Clear reporting whenever the Buffer Multisig is used would help the community evaluate whether it remains a temporary volatility hedge or has evolved into a structural funding shortcut.

ZKsync

ZKnomics Staking Pilot Season 1 Launch

ZKsync confirmed that Season 1 of the ZKnomics Staking Pilot launched on February 9, allowing ZK holders to stake via the Tally pilot interface while boosting governance participation. The pilot is designed to test staking infrastructure ahead of a future decentralized sequencer and to increase delegated voting power through a delegate-to-stake requirement.

Season 1 will run for three months, distributing up to 10M ZK in incentives and aiming to target 400M ZK staked. APY will start at 3% and may increase to 10% based on participation, with rewards available only to users who delegate to an active ZKsync delegate.

Finally, to address any questions about this new pilot, an FAQ section has been created where anyone can find answers and ask questions about this initiative.

ZKsync Audit Reimbursement Program 2026 (ZARP v2)

ZKsync published a draft proposal for ZARP v2, requesting 205M ZK (about $4.1M) to fund protocol security audits in 2026 and to reconcile eligible audit costs from 2025 that could not be claimed under the original program. Of this amount, $3M is allocated for forward-looking security work in 2026, with an additional $1.1M set aside for a one-time retroactive reimbursement tied to prior protocol upgrades.

Compared to ZARP v1, the updated program expands eligibility beyond ZIP-specific audits to include broader protocol-critical infrastructure such as core system contracts and operating components. Reimbursements remain governed by capped on-chain minters, reviewed by the Security Council, and fully transparent, aiming to better align audit funding with how security work is actually performed.

L2BEAT’s Take

From our standpoint, continuing to fund protocol security through ZARP v2 is a sensible decision. Audits are a non-negotiable part of protocol resilience, and expanding eligibility beyond specific ZIP proposals reflects how security work is actually carried out in practice, often integrated into ongoing infrastructure upgrades rather than discrete governance actions.

That said, the broader scope also increases the Security Council’s discretion in determining what is considered “critical to the protocol.” Given the magnitude of the allocation, clearer criteria and a concise retrospective of ZARP v1 results would strengthen accountability and facilitate evaluation of the evolution to v2.

ZKsync Immunefi Bug Bounty Program 2026

ZKsync published a draft proposal to fund its Immunefi bug bounty program for 2026, requesting a total of 100M ZK (around $2M). Of this amount, 80M ZK ($1.6M) would be allocated to forward-looking bug bounty rewards throughout 2026, while 20M ZK ($400k) would be used to retroactively reimburse Matter Labs for verified bug bounty payouts made in 2025.

The proposal formalizes bug bounty funding under governance oversight and transitions away from direct funding by Matter Labs. Two capped on-chain minters are proposed, both administered by the Security Council, with strict caps, conflict-of-interest rules, and full on-chain transparency. The program covers vulnerabilities affecting ZKsync core contracts, ZK Stack components, and critical infrastructure relied on by the broader ZK ecosystem.

ZKsync Association Donation

ZKsync published a draft Token Program Proposal to donate 64M ZK (around $1.6M) to the ZKsync Association, the non-profit entity that issues the ZK token and stewards the ZKsync governance framework. The donation would fund the Association’s operations for the next 12 months, including governance infrastructure, regulatory and compliance work, public documentation, and ecosystem coordination.

The proposal authorizes a capped mint controlled by the ZKsync Association, with the Security Council having the right to pause it. While the donation is not tied to specific deliverables, the Association commits to ongoing transparency through public reporting, documentation, and compliance with its non-profit mandate under Austrian law.

L2BEAT’s Take

The ZKsync Association plays a foundational role in issuing the token and maintaining the governance framework, so ensuring its operational continuity is in the ecosystem’s interest. Funding core governance infrastructure, regulatory alignment, and coordination functions is not glamorous work, but it is structurally important.

That said, the size of the capped mint and the absence of predefined KPIs naturally raise questions around accountability. We understand that, given the Association’s non-profit structure, attaching formal deliverables could create legal and tax complications. In that context, clarity around reporting practices and the Security Council’s ability to intervene if funds are misused become especially important safeguards.

Matter Labs – Q4 2025 Deliverables Report

Matter Labs has shared a Q4 update outlining ZKsync’s move to production-scale deployment. The Atlas upgrade and L1 interoperability went live; Airbender achieved ~1s proof-of-concept on consumer GPUs; and ZKnomics Part II activated staking and burn mechanics.

On the enterprise side, ZKsync launched Managed Services (RaaS), upgraded Prividium for compliance-focused deployments, published the MiCA White Paper, and saw Atlas-based chains like Dawn and ADI go live, including regulated use cases in the UAE.

Starknet

Periodic Manual Configuration of Minimal Base Fee

Ohad Barta from Starkware has posted a proposal for a temporary, manual approach to stabilize transaction fees amid STRK price volatility. Today, fees paid by applications fluctuate heavily with STRK’s market price, creating cost unpredictability for both dApps and sequencers whose revenues and expenses are largely dollar-denominated.

As a stopgap before an automated solution is finalized, the proposal suggests manually aligning a fixed USD cost to L2 gas usage, starting from a baseline of 10e-9 per L2 gas. The minimal base fee would be reviewed weekly based on the average STRK price, with adjustments proposed publicly and applied the following week. Fee increases would be phased in gradually using EIP-1559-style mechanics, while decreases would apply more quickly if congestion allows.

SNIP 50 - Introspection

SNIP 50 proposes a new standard for describing on-chain data through a structured set of types, events, and serialization rules. The goal is to enable generic indexers that can efficiently parse data from arbitrary contracts, rather than relying on project-specific, non-interoperable indexing solutions.

Instead of depending solely on ABIs, which are not inherently secure, the proposal introduces a self-describing, event-based approach to representing on-chain state for off-chain use. If adopted, Cairo developers could integrate standardized introspection directly into their contracts, making Starknet applications easier to index, query, and build on.

SNIP 36: in protocol proof verification

SNIP 36 proposes adding native support for S-Two proof verification directly within the Starknet protocol. The goal is to enable applications to execute transactions off-chain and prove their correctness on Starknet, unlocking more scalable architectures such as ZKThreads and app-specific sharding, as well as privacy-preserving use cases.

Instead of verifying large proofs via smart contracts (which is currently impractical due to calldata limits and high costs), the proposal introduces a new optional proof field in Invoke v3 transactions, along with compact proof_facts accessible through an updated syscall. In Phase 1, proofs would be verified by Starknet consensus (not yet on Ethereum), with future upgrades aiming to strengthen trustlessness and support more advanced scaling and privacy features.

If adopted, SNIP 36 would mark a significant step toward enabling off-chain execution with on-chain verification, while keeping backward compatibility and introducing new pricing rules tied to proof size and propagation.

[SNIP] Session Keys for Smart Accounts

Haycarlitos has introduced a draft SNIP proposing a standardized interface for session keys on Starknet smart accounts. Session keys allow users to delegate limited, scoped permissions to a secondary key for use cases such as gaming, automation, AI agents, and gasless transactions. While several wallet teams have implemented their own versions, these solutions are currently incompatible with one another. The proposal defines a common interface covering signature format, validation logic, selector restrictions, and paymaster compatibility to improve interoperability across the ecosystem.

A reference implementation is already live on Starknet mainnet and has undergone multiple audit rounds using Nethermind’s AuditAgent. The standard is designed as a reusable component that wallets can integrate without replacing their existing models, with a formal security audit planned before official submission.

Explainer: Starknet Foundation Delegation Program

AtlasStaking published an overview of the Starknet Foundation Delegation Program (SFDP), a stake-matching initiative designed to strengthen validator decentralization while maintaining performance standards. Under the program, the Foundation matches validators’ self-staked STRK on a 1:1 basis up to 5 million STRK, with additional residual delegation distributed evenly if funds remain in the pool. Eligibility requires running an active validator with high uptime, maintaining commission at or below 10 percent, meeting compliance standards, and remaining responsive to the Foundation. Delegation is reviewed and rebalanced quarterly.

The program aims to lower capital barriers for new validators, incentivize meaningful self-stake, and prevent excessive concentration of consensus power. For delegators, it signals that validators receiving Foundation stake must meet defined operational standards, while for operators it creates both an opportunity for additional stake and an expectation of sustained reliability and ecosystem engagement.

Lisk

DAO Fund Quarterly Report (Nov 2025–Feb 2026)

SuperchainEco published a quarterly report, marking the operational launch of the fund and the start of capital deployment. During the period, the team set up LiskDAO.com, evaluated 18 project applications, and finalized its first two investments, officially activating the fund.

As of February 4, the fund manages roughly $772k in AUM, split across liquid assets, earmarked pipeline capital, and two active portfolio positions. The first deployments include $50k each into LovCash, a loyalty-focused fintech platform targeting South Africa, and Cr3dentials, a ZK-based identity and verification project supporting DeFi and RWA use cases.

Looking ahead, the fund is slowing new allocations over the next 3–6 weeks to align with evolving priorities from the Lisk core team and upcoming Season 3 plans. Near-term focus will be on monitoring early investments, maintaining a controlled intake pipeline, and tightening strategic coordination with ecosystem leadership.

DAO Reflection and Update

SuperchainEco has shared a reflection following the conclusion of Season 2, alongside the return of 95,753 LSK in unspent funds to the treasury. The post reviews 2025 execution data and outlines a deliberate pause as the ecosystem reassesses its next phase.

Season 2 highlights include a 90% completion rate across funded grants, Lisk’s emergence as a Top 10 Superchain network, a 41% increase in daily revenue in Q4 2025, and over $25M in TVL during Surge campaigns. The launch of the Lisk DAO Fund and its first two investments are also framed as early steps toward generating direct upside for the treasury, while strong application demand reinforced Lisk’s emerging markets thesis.

At the same time, the post acknowledges broader challenges, including weak LSK price performance and shifting market conditions. With Max Kordek returning as CEO, the DAO has chosen to pause Season 3, return unused funds, and give the core team time to finalize its strategy before restarting DAO activity with tighter alignment and clearer priorities.

Polygon

PIP 78: Adjusting CHECKPOINT_REWARD to Realign Emissions

Polygon is proposing a 6.5% reduction to the CHECKPOINT_REWARD parameter to realign validator emissions with the 1% annual target set in PIP 26.

Since mid-2025, rewards have exceeded projections by about 7%, mainly due to a higher checkpoint frequency following improvements in network speed. Rather than retroactively correcting past over-distribution, the proposal applies a forward-looking adjustment to bring daily emissions back in line with targets. The change is purely a parameter update and does not modify contract logic or interfaces.

PIP 79: Bounded-Range Validation for Configurable EIP-1559 Parameters

PIP 79 proposes replacing Polygon’s current deterministic EIP-1559 base fee validation with a bounded-range model. Instead of requiring an exact base fee calculation based on hardcoded parameters, validators would accept blocks if the base fee is within ±5% of the parent block’s value.

This consensus-breaking change, to be activated via hardfork, would allow block producers to gradually tune fee market dynamics without needing future hardforks for parameter updates. The ±5% boundary preserves safety while enabling more responsive fee adjustments in changing market conditions.

PIP 80: P256 Precompile Gas Cost Update

PIP 80 proposes increasing the gas cost of the P256 (secp256r1) precompile from 3,450 to 6,900 gas, aligning Polygon PoS with Ethereum’s EIP-7951 introduced in the Fusaka hardfork.

The precompile address and functionality remain unchanged, but the update is consensus-breaking and would require a hardfork. Contracts using the P256 precompile will see higher gas usage after activation, reflecting the adjusted computational cost.

PIP 81: Lisovo Hardfork

PIP 81 proposes the Lisovo hardfork for Polygon PoS, bundling several core upgrades into a single network update.

On Amoy testnet, Lisovo is scheduled for activation at block 33,634,700 (Mainnet block TBD). The hardfork includes:

  • PIP-79 – Boundary-based validation for EIP-1559 base fee (±5% range instead of exact match).
  • PIP-80 – Increase of the P256 precompile gas cost to align with Ethereum.
  • EIP-7939 – Introduction of the CLZ (Count Leading Zeros) opcode.

Together, these changes aim to improve fee market flexibility, maintain Ethereum compatibility, and strengthen security by incorporating updates aligned with Ethereum’s Fusaka hardfork.

PIP-82: Agentic Commerce Gas Program

PIP-82 proposes allocating up to $1M worth of gas base fees to support Agentic Commerce transactions on Polygon PoS through the end of 2026 (or until the budget is exhausted).

Polygon currently accounts for a notable share of x402-based agent transactions, and the proposal aims to strengthen that position by effectively recycling EIP-1559 base fees spent by eligible Agentic Commerce flows. Instead of permanently burning those base fees, the burn recipient address would be updated via hardfork, allowing qualifying fees to be periodically recycled through the existing PIP-65 distribution system. Non-recycled POL would continue to flow to the current burn address.

The program would initially apply to a defined list of public x402 facilitator addresses and operate until the $1M cap is reached or December 31, 2026. Because this redirects EIP-1559 burn mechanics, the proposal requires a Bor hardfork and is not backward compatible.

Bor v2.6.0-beta and Erigon v3.4.0-beta for Amoy

0xsajal from the Polygon Validators Support team has released new beta versions of the PoS clients Bor (v2.6.0-beta) and Erigon (v3.4.0-beta) in preparation for the upcoming Lisovo hardfork on the Amoy testnet.

The release introduces protocol changes, including support for the CLZ opcode and updated P256 gas costs, along with a broad range of performance, stability, and reliability improvements. Notable updates include dynamic EIP-1559 parameters, improved witness verification, better block production metrics, rebroadcast mechanisms, and multiple fixes addressing concurrency, reorg handling, and race conditions. Validators and node operators on Amoy are encouraged to upgrade ahead of the hard fork.

Scroll

RFC on DAO Multisig Management Policy

SEEDGov published an RFC proposing a standardized policy for configuring and operating Scroll DAO multisigs. The goal is to reduce operational risk, improve transparency, and establish clear responsibilities for treasury- and program-level fund management, drawing on practices used by other mature DAOs.

The proposal defines a single 3-of-5 treasury multisig split across the Operations Committee, Accountability Committee, and Scroll Foundation, alongside dedicated 2-of-3 multisigs for individual programs. It also introduces clear rules around transaction flow, signer rotation, transparency requirements, and security best practices, with hardware wallets planned to become mandatory for signers starting in July 2026.

L2BEAT’s Take

Formalizing multisig standards is a healthy step for Scroll DAO. Clear signer allocation, threshold rules, transaction recording, and security best practices reduce operational risk and create predictable processes around treasury management. Separating governance decisions from operational execution is also appropriate, as it preserves DAO authority while professionalizing execution.

We especially see value in the hardware wallet requirement and defined signer replacement logic, both of which address common failure points in DAO treasury management. While no policy eliminates risk entirely, setting explicit standards and documenting responsibilities is preferable to relying on informal norms.

[RFC] DCP 1 - State of Scroll Research

SEEDGov has introduced an RFC to pilot the Delegates Contribution Program (DCP) with a “State of Scroll” research initiative as its first output. The program will allocate 5,000 USDC to selected contributors to produce a comprehensive report covering regional chapters and vertical deep dives, along with a consolidated PDF, ecosystem maps, and social-ready summaries. The research aims to provide a high-signal overview of Scroll’s global positioning, key stakeholders, competitive landscape, and actionable opportunities, with expected delivery by May 31.

The Scroll Foundation will support the effort by providing reference materials and contextual data, while all published findings must rely on publicly sourced information. Contributors will be selected through an application process managed by the Operations Committee, with defined roles for global data, visualization, and regional research. The initiative is designed to equip the DAO with structured ecosystem intelligence to inform strategic priorities and governance decisions.

Uniswap

Protocol Fee Expansion: Eight More Chains and Remaining Mainnet v3 Pools

Haydenadams has submitted a proposal to expand protocol fees to eight additional chains, Arbitrum, Base, Celo, OP Mainnet, Soneium, X Layer, Worldchain, and Zora, while also enabling fees across all remaining v3 pools. The proposal uses the streamlined governance process approved under UNIfication, allowing fee updates to move directly to Snapshot before an on-chain vote. Fees collected on L2s would be routed locally and bridged back to the Ethereum mainnet for UNI burns.

The proposal also replaces the current pool-by-pool fee configuration with a tier-based system via a new v3OpenFeeAdapter, automatically applying protocol fees to all pools within the same LP fee tier. If approved, this would significantly expand fee coverage across Uniswap’s multi-chain deployment and further institutionalize protocol revenue capture.

L2BEAT’s Take

Expanding protocol fees to eight additional chains and enabling fees across all remaining v3 pools is a consistent continuation of UNIfication. The proposal keeps fee rates unchanged while moving from a curated allowlist to a tier-based default-on model, making revenue capture more systematic and governance lighter-touch.

The extension builds on an existing burn architecture and preserves the searcher-based design, avoiding additional pricing or routing complexity. Governance also retains the ability to override fees on specific pools, keeping the economic risk reversible.

That said, for some of the newly included chains, key implementation details and audit scope are not yet fully verifiable from public sources. Publishing these ahead of the on-chain vote would strengthen transparency.

Quiet Corner

Some ecosystems saw no meaningful governance developments this week.

  • Hop
  • Wormhole

As always, if we missed something important, feel free to reach out. We’re happy to dig deeper.

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