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![NOTABLE DAOS
Name Token Use cases Network Launch Status
Dash DASH
Governance, fund
allocation [24]
Dash
(cryptocurrency)
May 2015[25] Operational since
2015[26][27][28]
The DAO DAO Venture capital Ethereum April 2016
Defunct late 2016
due to hack[29]
Augur REP
Prediction
market, Sports
betting, Option
(finance), Insurance
Ethereum July 2018 Operational
Steem STEEM
Data distribution,
Social media, Name
services, Industrial
Steem March 2016 Operational
Uniswap UNI
Exchange,
Automated Market
Making
Ethereum November 2018 Operational[30]
ConstitutionDAO PEOPLE
Purchasing an
original copy of
the Constitution of
the United States
Ethereum November 2021[31] Defunct[32]](https://image.slidesharecdn.com/onchaindecentralizedgovernance2-220506030257-f57391bf/85/Onchain-Decentralized-Governance-2-pptx-7-320.jpg)
![BALLOT CONTRACT 2/6
constructor(bytes32[] memory proposalNames) {
chairperson = msg.sender;
voters[chairperson].weight = 1;
// For each of the provided proposal names,
// create a new proposal object and add it
// to the end of the array.
for (uint i = 0; i < proposalNames.length; i++) {
// `Proposal({...})` creates a temporary
// Proposal object and `proposals.push(...)`
// appends it to the end of `proposals`.
proposals.push(Proposal({
name: proposalNames[i],
voteCount: 0
}));
}
}](https://image.slidesharecdn.com/onchaindecentralizedgovernance2-220506030257-f57391bf/85/Onchain-Decentralized-Governance-2-pptx-18-320.jpg)
![BALLOT CONTRACT 3/6
function giveRightToVote(address voter) external {
require(
msg.sender == chairperson,
"Only chairperson can give right to vote."
);
require(
!voters[voter].voted,
"The voter already voted."
);
require(voters[voter].weight == 0);
voters[voter].weight = 1;
}](https://image.slidesharecdn.com/onchaindecentralizedgovernance2-220506030257-f57391bf/85/Onchain-Decentralized-Governance-2-pptx-19-320.jpg)
![BALLOT CONTRACT 4/6
/// Delegate your vote to the voter `to`.
function delegate(address to) external {
// assigns reference
Voter storage sender = voters[msg.sender];
require(!sender.voted, "You already voted.");
require(to != msg.sender, "Self-delegation is disallowed.");
while (voters[to].delegate != address(0)) {
to = voters[to].delegate;
// We found a loop in the delegation, not allowed.
require(to != msg.sender, "Found loop in delegation.");
}
// Since `sender` is a reference, this
// modifies `voters[msg.sender].voted`
Voter storage delegate_ = voters[to];
// Voters cannot delegate to wallets that cannot vote.
require(delegate_.weight >= 1);
sender.voted = true;
sender.delegate = to;
if (delegate_.voted) {
// If the delegate already voted,
// directly add to the number of votes
proposals[delegate_.vote].voteCount += sender.weight;
} else {
// If the delegate did not vote yet,
// add to her weight.
delegate_.weight += sender.weight;
}
}](https://image.slidesharecdn.com/onchaindecentralizedgovernance2-220506030257-f57391bf/85/Onchain-Decentralized-Governance-2-pptx-20-320.jpg)
![BALLOT CONTRACT 5/6
function vote(uint proposal) external {
Voter storage sender = voters[msg.sender];
require(sender.weight != 0, "Has no right to vote");
require(!sender.voted, "Already voted.");
sender.voted = true;
sender.vote = proposal;
// If `proposal` is out of the range of the array,
// this will throw automatically and revert all
// changes.
proposals[proposal].voteCount += sender.weight;
}](https://image.slidesharecdn.com/onchaindecentralizedgovernance2-220506030257-f57391bf/85/Onchain-Decentralized-Governance-2-pptx-21-320.jpg)
![BALLOT CONTRACT 6/6
function winnerName() external view
returns (bytes32 winnerName_)
{
winnerName_ = proposals[winningProposal()].name;
}](https://image.slidesharecdn.com/onchaindecentralizedgovernance2-220506030257-f57391bf/85/Onchain-Decentralized-Governance-2-pptx-22-320.jpg)
Uploaded byGene Leybzon
Onchain Decentralized Governance 2.pptx
The document discusses decentralized governance and smart contracts, providing examples of DAO governance models and OpenZeppelin governor contract functionality. It defines DAOs as organizations represented by rules encoded as a computer program and controlled by members, not a central authority. Notable DAOs like Dash, The DAO, Augur, and Uniswap are examined. Yearn Finance's multi-DAO governance structure using YFI tokens is explained in detail. Finally, examples are provided for deploying a MeetupToken contract, MeetupGovernor contract, and creating a DAO using these contracts and on-chain voting functionality.
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Onchain Decentralized Governance 2.pptx
- 1. DECENTRALIZED GOVERNANCE PART II Smart Contractsthat power Decentralized On- chain Governance Gene Leybzon 4/7/2022
- 2. DISCLAIMER § The viewsand opinions expressed by the Presenter are those of the Presenter. § Presentation is not intended as legal or financial advice and may not be used as legal or financial advice. § Every effort has been made to assure this information is up-to-date as of the date of publication.
- 3. PLAN FOR TODAY 1.DAOand Decentralized Governance (refresh) 2.Examples of Successful Governance Models 3.OpenZeppelin governor contract examples 4.Next steps
- 4. DEFINING DAO “A decentralizedautonomous organization (DAO), sometimes called a decentralized autonomous corporation (DAC), is an organization represented by rules encoded as a computer program that is transparent, controlled by the organization members and not influenced by a central government, in other words they are member-owned communities without centralized leadership.” - Wikipedia • DAOs often use blockchain technology to provide a secure digital ledger to track digital interactions • DAO governance is coordinated using tokens or NFTs that grant voting powers • DAOs can be subject to coups or hostile takeovers that upend their voting structures especially if the voting power is based upon the number of tokens one owns
- 5. DECENTRALIZED GOVERNANCE Decentralized Governance frameworks formanaging collective action and common resources rules of decentralized organizations are primarily enforced by code, rather than the legal system often use direct voting Benefits: • Gives power directly to token holders • Eliminates some risks of censorship, manipulation, bribery • Reduce reliance on external legal frameworks and systems • Helps to align interests with group goals • Greater autonomy • Efficiency of decision making • Improved transparency
- 6. GOVERNANCE BY VOTING OnChain More secure No trusted third party is required to count or enact votes Passed proposals can be executed automatically Works well for approving protocol changes or other high-risk votes Reduces risk of vote tampering Off Chain Votes are not submitted as blockchain transactions No transaction fees are necessary for off chain votes More participation, particularly from smaller holders and wider community Off chain votes can be recorded via decentralized data storage systems, reducing risk of vote tampering Works well for sentiment polls or other low risk votes
- 7. NOTABLE DAOS Name TokenUse cases Network Launch Status Dash DASH Governance, fund allocation [24] Dash (cryptocurrency) May 2015[25] Operational since 2015[26][27][28] The DAO DAO Venture capital Ethereum April 2016 Defunct late 2016 due to hack[29] Augur REP Prediction market, Sports betting, Option (finance), Insurance Ethereum July 2018 Operational Steem STEEM Data distribution, Social media, Name services, Industrial Steem March 2016 Operational Uniswap UNI Exchange, Automated Market Making Ethereum November 2018 Operational[30] ConstitutionDAO PEOPLE Purchasing an original copy of the Constitution of the United States Ethereum November 2021[31] Defunct[32]
- 8.
- 9. EXAMPLE OF VOTINGPROPOSAL FLOW
- 10.
- 11. APPROACHES FOR DAO GOVERNANCE No-Code DAOStack Aragon Colony DAOHaus xDAO Snapshot Coding Solutions Zodiac Tally Gnosis Safe Openzeppelin
- 12.
- 13.
- 14. ADDING YOUR DAOTO TALLY.XYZ
- 15. MAJOR GOVERNANCE FRAMEWORKS ANDAPPROACHES On-chain voting Off-chain Voting Vote delegation Protocols Compound Governor ✓ ✓ COMP voting OpenZeppelin Governor ✓ ✓ Many Curve Voting Escrow ✓ ✓ Curve Finance mStable Multisigs ✓ Synthetix Yearn Finance Sushiswap Snapshot Polls ✓ Balancer Sushiswap Yearn Finance
- 16. TALLY.XYZ SUPPORTED PROTOCOLS Compound (COMP) Uniswap(UNI) Indexed Finance (NDX) PoolTogether (POOL) Radicle (RAD) Idle Finance (IDLE) Inverse Finance (INV) Unslashed Finance (USF) …
- 17. BALLOT CONTRACT 1/6 //SPDX-License-Identifier: GPL-3.0 pragma solidity >=0.7.0 <0.9.0; /// @title Voting with delegation. contract Ballot { struct Voter { uint weight; // weight is accumulated by delegation bool voted; // if true, that person already voted address delegate; // person delegated to uint vote; // index of the voted proposal } // This is a type for a single proposal. struct Proposal { bytes32 name; // short name (up to 32 bytes) uint voteCount; // number of accumulated votes }
- 18. BALLOT CONTRACT 2/6 constructor(bytes32[]memory proposalNames) { chairperson = msg.sender; voters[chairperson].weight = 1; // For each of the provided proposal names, // create a new proposal object and add it // to the end of the array. for (uint i = 0; i < proposalNames.length; i++) { // `Proposal({...})` creates a temporary // Proposal object and `proposals.push(...)` // appends it to the end of `proposals`. proposals.push(Proposal({ name: proposalNames[i], voteCount: 0 })); } }
- 19. BALLOT CONTRACT 3/6 functiongiveRightToVote(address voter) external { require( msg.sender == chairperson, "Only chairperson can give right to vote." ); require( !voters[voter].voted, "The voter already voted." ); require(voters[voter].weight == 0); voters[voter].weight = 1; }
- 20. BALLOT CONTRACT 4/6 ///Delegate your vote to the voter `to`. function delegate(address to) external { // assigns reference Voter storage sender = voters[msg.sender]; require(!sender.voted, "You already voted."); require(to != msg.sender, "Self-delegation is disallowed."); while (voters[to].delegate != address(0)) { to = voters[to].delegate; // We found a loop in the delegation, not allowed. require(to != msg.sender, "Found loop in delegation."); } // Since `sender` is a reference, this // modifies `voters[msg.sender].voted` Voter storage delegate_ = voters[to]; // Voters cannot delegate to wallets that cannot vote. require(delegate_.weight >= 1); sender.voted = true; sender.delegate = to; if (delegate_.voted) { // If the delegate already voted, // directly add to the number of votes proposals[delegate_.vote].voteCount += sender.weight; } else { // If the delegate did not vote yet, // add to her weight. delegate_.weight += sender.weight; } }
- 21. BALLOT CONTRACT 5/6 functionvote(uint proposal) external { Voter storage sender = voters[msg.sender]; require(sender.weight != 0, "Has no right to vote"); require(!sender.voted, "Already voted."); sender.voted = true; sender.vote = proposal; // If `proposal` is out of the range of the array, // this will throw automatically and revert all // changes. proposals[proposal].voteCount += sender.weight; }
- 22. BALLOT CONTRACT 6/6 functionwinnerName() external view returns (bytes32 winnerName_) { winnerName_ = proposals[winningProposal()].name; }
- 23. TOKEN VOTE DEMOCRACYOR PLUTOCRACY?
- 24. HOW DECENTRALIZED ISTHE GOVERNANCE OF BLOCKCHAIN- BASED FINANCE? The initial allocation of governance tokens by project
- 25.
- 26. WHAT IS YEARN.FINANCE? •Decentralized finance (DeFi) project • Runs on the Ethereum blockchain • Automates yield earning from stablecoins • Enable users to optimize their earnings on crypto assets through lending and Consists of several independent products, including: •APY – Shows interest rates across different lending protocols. •yEarn (depricated) – Identifies the highest interest rates users can earn lending an asset. •Vaults – Collection of investment strategies designed to generate the highest returns from other DeFi projects. •Zap – Bundles several trades in one click, saving on costs and labor. •yGift - NFT that can be used to reward someone for their work, or to simply share some love Anyone who owns YFI is able to receive revenue collected by the protocol in the form of fees. yearn.finance charges a fee of 5% for its Vaults service and and 0.5% on Vaults and Earn. The yearn.finance system retains $500,000 of fees and distributes the rest to YFI holders.
- 27. YFI GOVERNANCE MODEL Amulti-DAO structure, managed by constrained delegation A fluid number of decentralized autonomous organizations (DAOs) that contribute to the protocol in some unique way YFI holders vote for changes to the protocol or the protocols governance structure yTeams focus on specific aspects of the protocol or relevant operations Multisig members execute or veto any on- chain decisions
- 28. SIMPLIFIED GOVERNANCE FLOW YFI holders yTeams yTx Multisig create,destroy, define limitations notify about decision creates Delegate d Transacti on execute or vet
- 29. DETAIL FLOW yTeam ObjectiveMembership Pool yGuard Protect the vaults YFI Protocol Dev, YFI Strategists, YFI Mechanics, YFI Secret Admirers yBrain Manage the strats YFI Strategists yDev Manage the protocol YFI Protocol Dev yPeople Curate the team YFI Compensation Working Group, YFI Advisors yBudget Spend money well YFI Finances, YFI Advisors yFarm Grow the treasury YFI Secret Admirers, YFI Secret Entrance yTx Write transactions YFI Doers
- 30. PROPOSAL PROCESS Requirements topass proposals •3 day discussion on the forum • At least 25% vote 'for' the change •1 YFI in possession to submit to snapshot •5 day snapshot with over 50% passing votes https://gov.yearn.finance/ https://snapshot.org/#/ybaby.eth
- 31. YFI PROPOSAL STATES ProposedYIPs will be discussed on governance calls and in Discord Approved – This YIP has passed community governance and is now being prioritized for development. Implemented – This YIP has been implemented and deployed to the mainnet. Rejected – This YIP has failed to reach community consensus. Withdrawn – This YIP has been withdrawn by the author(s) Deferred – This YIP is pending another YIP/some other change that should be bundled with it together. Propose d Approve d Implem ented Moribun d Deferre d Rejected Withdraw n
- 32. YFI TEAM COMPENSATION GiftCircles allow DAO members to collectively reward each other Circle contributors directly recognize each other’s value, building a more cohesive and productive community Understand how value moves through your organization and move more decisions and resources to the community coordinape.com “Decentralized payroll for flat organizations”
- 33. MEETUP GOVERNOR CONTRACT RequirementValue Voting Delay (time between deployment of contract and voting start) 1 minute Proposal Threshold (Minimum number of votes to create proposal) 0 Quorum 50% of votes Voting Period 1 minute
- 34. SOLIDITY CODE FORGOVERNOR AND TOKEN CONTRACTS pragma solidity ^0.8.4; import "@openzeppelin/contracts/governance/Governor.sol"; import "@openzeppelin/contracts/governance/extensions/GovernorCountingSimple.sol"; import "@openzeppelin/contracts/governance/extensions/GovernorVotes.sol"; import "@openzeppelin/contracts/governance/extensions/GovernorVotesQuorumFraction.sol"; contract MeetupGovernor is Governor, GovernorCountingSimple, GovernorVotes, GovernorVotesQuorumFraction { constructor(IVotes _token) Governor("MeetupGovernor") GovernorVotes(_token) GovernorVotesQuorumFraction(50) {} function votingDelay() public pure override returns (uint256) { return 1; // 1 block } function votingPeriod() public pure override returns (uint256) { return 5; // 1 minute } // The following functions are overrides required by Solidity. function quorum(uint256 blockNumber) public view override(IGovernor, GovernorVotesQuorumFraction) returns (uint256) { return super.quorum(blockNumber); // SPDX-License-Identifier: MIT pragma solidity ^0.8.4; import "@openzeppelin/contracts@4.6.0/token/ERC20/ERC20.sol"; import "@openzeppelin/contracts@4.6.0/token/ERC20/extensions/draft-ERC20P import "@openzeppelin/contracts@4.6.0/token/ERC20/extensions/ERC20Votes.s contract MeetupGold is ERC20, ERC20Permit, ERC20Votes { constructor() ERC20("MeetupGold", "MG") ERC20Permit("MeetupGold") { _mint(msg.sender, 1000 * 10 ** decimals()); } // The following functions are overrides required by Solidity. function _afterTokenTransfer(address from, address to, uint256 amount internal override(ERC20, ERC20Votes) { super._afterTokenTransfer(from, to, amount); } function _mint(address to, uint256 amount) internal override(ERC20, ERC20Votes) { super._mint(to, amount); } function _burn(address account, uint256 amount) internal override(ERC20, ERC20Votes) { super._burn(account, amount);
- 35.
- 36.
- 37.
- 38.
- 39. NEXT STEPS Moving beyondcoin voting governance Governance Minimization Guide Finance Redefined: Can DeFi and on-chain governance change human nature? On-Chain Governance How to Code an On-Chain DAO Contracts Wizard How to set up on-chain governance OpenZeppelin Governance API Documentation
- 40.