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The purpose of this research is to learn more about the DAOs operation, which tools they use to bootstrap the growth of their organization, and how their governance process works…
Decentraland is a digital game that was built to mimic reality in 3-D and it is a user-owned, Ethereum-based virtual reality world platform. The users of this platform oversee this digital world via a decentralized autonomous organization (DAO).
MANA is the governance utility token for Decentraland DAO. MANA enables users to buy items such as wearables, invest in properties, develop and trade virtual land in decentralized manner.
How Does Decentraland use Aragon?
Decentraland uses the battle-tested security of Aragon client to secure and store their DAO treasuries. Decentraland holds off-chain votes for new proposals; when a vote is completed, commitee members uses Aragon to execute those votes.
How Does Decentraland Use Boardroom?
Decentraland uses the Boardroom tool to store updates including treasury, votes, proposals and more.
What more?
Decentraland also leverages multisig wallet as part of their DAO tool. The multisig wallet is controlled by the DAO committee (a group of 3 individuals) who have been selected by the community to hold the keys of the multisig wallet. This multisig will enact any passed votes with a binding action, like funding a grant, adding or removing a Poll or implementing governance.
Decentraland governance proposal has 3 steps: each step must reach the required threshold before it can be promoted to the next level.
A Pre-proposal poll
This is the first step to get to the final binding governance proposal. Decentraland Polls are known to be non-binding, multiple choice questionnaires used to measure community general opinion. If the Pre-preposal poll amasses enough participation VP (500k VP is the acceptance threshold), then the proposal gets promoted to the next level (Draft proposal.)
A Draft Proposal
A Draft proposal presents the community potential policy; it contains a structured discussion format, impact and implementation pathway of the proposal. Once a Draft proposal amasses enough participation (1M VP is the acceptance threshold), it gets promoted to the governance proposal.
A Governance Proposal
This is the last step towards governance. It must include details, methods, data and information on how it will be implemented. If it gets 6M VP and the yes option.
1.Aragon
Aragon exists to be a decentralized platform that allows individuals to creat and seamlessly manage organizations on the Ethereum blockchain. Aragon is also an on-chain governance platform for DAOs. With Aragon, DAOs can conduct governance on-chain without writing a singleline of code. DAOs can also customize the votes on Aragon to suit thier needs.
Boardroom is a DAO governance portal that is powered by Boardroom's API, Boardroom is a governance framework agnostic interface that allows DAOs to standardize actions like voting and delegation - with Boardroom, DAO members can participate in distributed governance.
Overview of Boardroom (Video)
Decentraland DAO Onboarding process is very easy; Click here to join their discord, react to any emoji and that's all. You can start engaging with the community.
One of the easiest ways to earn MANA is by investing in plots (LAND) which you can sell later. On Decentraland, you can take advantage of the in-game activities to help you earn MANA. In fact, users can create 3D assets and sell them, lastly, you can get MANA by purchasing on DEX exchanges.
INTRODUCTION
This research is centered on Balancer.fi - Since Balancer rose to prominence, the DeFi ecosystem witnessed a revolutionary introduction of the concept of multi-token pools. In the paragraphs below, we’ll learn about the DAO tools used by Balancer and how these tools are used in their governance process. Equally, we’ll discuss about the Balancer DAO utility token and how individuals can get the token.
Balancer is one of the novel and groundbreaking DeFi applications that acts as a token swap platform, a liquidity mining source, and an efficient liquidity protocol for integration into other DeFi protocols. Balancer runs on Ethereum (ETH), Polygon (MATIC), Arbitrum, Fantom (FTM) as well as Optimism.
With Balancer protocol, users can seamlessly set a custom trading fee and also provide liquidity for up to eight assets in a single liquidity pool — Cool!
The Balancer DAO governance proposal submission has two distinct items: An English Proposal and a Multisig payload for executing any chances described on-chain.
Here are the steps towards Balancer DAO governance
Step 1. The Balancer DAO governance process starts in the ; users will write an English language description of the purpose of the proposal and the details of the changes to be made. veBAL holders, also called Balancer Governors, vote on proposals relevant to the protocol.
Step 2. Moving forward, Balancer Governors can now participate in discussions on the Balancer forum as you promote your topic — you can also seek delegates to obtain their support. Sought for people who would resonate with your proposal and have them gather their thoughts in a forum post.
Step 3. Develop and validate transaction Pull Request: On Balancer, a Pull Request (PR) is a transaction that is posted to a gnosis-safe multisig which executes the changes specified by the BIP on-chain. It is required as part of the body of a Proposal, before it can be brought to a valid snapshot.
The whole governance process looks a little bit daunting but, if you don’t want to get involved in the technical side of things, like defining your execution, the Maxis are a service provider and they are funded and managed by the DAO on a rolling basis.
They are the ones managing the multisig. You can contact them for any help — they can be found on the and also .
In the situation where a Snapshot is approved by governance and perhaps rejected for technical reasons, the Maxis can help to fix the payload whilst facilitating a revote to approve.
Step 4. This is the fourth step towards a successful governance proposal — The Snapshot process will commence once an address amasses at least 200,000 veBAL in delegation posts a snapshot to the forum — keep in mind that the snapshot must meet all the required specifications
More so, the voting runs for 96 hours starting on a Thursday (GMT) with a quorum of 2 million veBAL. Even if your snapshot wins a majority of the votes but does not meet all of the above requirements, it will be regarded as invalid — Please, take your time when posting Snapshots.
Step 5. Results and Execution: Any vote that fails in an approve/reject vote will not be executed by Balancer governors; when a vote succeeds or has been chosen, be on the lookout to be sure it is executed properly.
To approve the off-chain votes carried on Snapshot, the Balancer Protocol leverages a Multisig to enact these changes on-chain. Multisig signers are a group of respected community members. Just so you know, they do NOT have decision-making power, their sole purpose is to simply enact on-chain the decisions BAL holders make via an off-chain voting system.
Snapshot is an open-source DAO tool that fascilitates decision-making processes within decentralized organizations. Snapshot is an off-chain gasless multi-governance client with easy-to-verify and hard-to-contest results. Balancer uses Snapshot to vote for their proposal.
Following that, the (BAL) token is a paramount asset for the Balancer protocol, Balancer DAO is governed by the Balancer (BAL) token holders. Community members can earn the BAL token through liquidity mining by depositing cryptos into Balancer’s liquidity pools. It can also be purchased via DEX exhanges such as Binance.
This research was carried out on 1Inch DAO. This task is about learning about the DAO tools this DAO uses and its onboarding process.
1inch is a worldwide network that consists of different decentralized protocols tailored to provide the most rewarding, fast and safe operations in the DeFi space. 1inch Network uses the powerful characteristics of all popular chains such as Ethereum, BNB Chain, Polygon, Arbitrum, Optimism, and Avalanche for giving its users ultimate flexibility for swapping any digital asset they hold.
1inch DAO uses their forum and Snapshot for governance operation. 1inch network governance process welcomes everyone, anyone can creare a proposal (1IP), or vote on any existing proposal. These proposals will be funded by the 1inch Network Treasury while its implemented by a third party.
There are 5 phases of 1inch DAO governance.
Phase 1. Governance starts in the 1inch DAO forum. Anyone can create, and comment on current proposals. Navigate to the in the 1inch forum.
Phase 2. 1IP Formalization, to create an official 1inch governance proposal, you must . All official 1inch proposals (1IP) must follow the same structure.
Phase 3. 1IP Temperature Check, the creator/author of the proposal may finalize their proposals (phase 2) then initiating a community temperature which have a duration of 5 days. To start the Temperature Check, the author should navigate to the 1inch forum and change the tag of the forum to Phase-3 and make sure to add a forum poll gauging the community sentiment.
N.B: Each poll is open for 5 days, once phase-3 commences, it cannot be reversed.
Phase 4. The proposal are not taking to Snapshot to conduct an off-chain voting. If voted in, it will be implemented on-chain. The Snapshot proposal is open for a voting period of 7-days.
After a successful voting period has concluded on Snapshot, the results will be published on on the governance documentation website. Any passed proposal will move from Active to Passed category. If it does not Pass, it'll be moved to Not-Passed.
Snapshot
Snapshot is a decentralized DAO voting platform that allows users to create governance proposals and vote off-chain with spending any gas fees.
Resources:
The 1INCH utility token is at the moment available on Ethereum and BNB Chain. The 1INCH utility token is used by the DAO members to govern all of the 1inch Network protocols either present or in the future. It is also used in the governance modules of the 1inch Aggregation Protocol and the 1inch Liquidity Protocol.
INTRODUCTION
The purpose of this research is to get a clear sense of what Illuvium DAO is all about. We also want to know the tools they use to enhance the growth of their organization as well as governance process. To begin with, what is Illuvium?
exists to be a decentralized Ethereum role-play game. The Illuvium blockchain game was designed to enable users play and earn in-game rewards by engagiging with quests and competitions. Furthermore, Illuvium digital world is opne to everyone - Users can search for in-game items and creatures called (Illuvials) in the form of non--fungible tokens (NFTs). These collectibles can be used for battling, collecting, and trading as well.
ILV is an ERC-20 governance utility token that is used to govern the Illuvium DAO and it is also the main currency used to award players for their awesome achievements in the game.
The goal behind the Illuvium project was to make a collectible NFT game that was open, transparent, and governed by the community member. Illuvium uses an off-chain voting system (Snapshot).
The Illuvium DAO governance mechanism is as follows:
A community of $ILV holders will govern and maintain the protocol, using the Illuvinati Council. The $ILV utility token holders have a say in the Illuvium decisition-making process - holders of the $ILV token also have the ability to nominate an individual for a council seat as well as delegate their vote to a nominee. To elect a group of council members, their desired candidates for council members must be proposed before the due date of the election.
Following that, the voting will commence and run for a period of 72 hours to elect the 5 individuals best suited for the role of governing the platform. At the end of the Election Period, the council members will be issued their NFTs.
The "eDAO" alongside "Illuvinati Council" is the Illuvium initial governance model and is subject to change - After the council members have been elected, the eDAO will then collate all proposed members from the Illuvium Discord Channel Illuvinati Council, then proceed to prepare the candidates to be voted on in an off-chain manner within Snapshot.
There are two major components of the new governance system:
The Illuvinati Council: This consist of a group of nominees who are voted in by the $ILV token holders.
Illuvium Proposals: Any one looking to propose changes to the Illuvium protocol or have a say in the decision-making process must go through ICCPs and IIPs. The ICCPs and IIPs are submitted to the IIP’s Github repository and posted on the Illuvium Proposal space afterwards. Any proposals that doesn't reach a supermajority agreement will not be enacted.
ICCPs is the short for Illuvium Configuration Change Proposals, they are documents that put forth a case for modifying within the DAO. On the other hand, IIPs stands for Illuvium Improvement Proposals. They always ensure that changes to the Illuvium Protocol are transparent and well-governed. An IIP is a design document providing information to the Illuvium community about a proposed change to the system.
The period where the proposal is in review before being implemented, initially set at 24 hours.
Snapshot is one of the worlds leading voting platform for DAOs, it enable DAOs, DeFi protocols, or NFT communities to cast votes in a hassle-free manner without gas fees. For greater benefits, Snapshop allows for the customization of the voting process to meet the needs of the users and organizations.
There are numerous ways players can earn the ILV utility token. Aside from purchasing them across decentralized exchanges like (Binance,Coinbase, Sushi), the ILV token holders are also allowed to partake in esports tournaments, resource farming (harvesting/picking plants, or mining minerals), Illuvium zero, collectiong Illuvials (they are NFTs that can also be traded on a marketplace), and interacting with in-game activities to earn yield.
Onboarding is very easy, to get started, simply , and verify that you’re human — you’re in!
protocol sources liquidity from various exchanges and ensuring the best rates.
is a fast and secure iOS wallet for storing, receiving, sending and swapping crypto assets.
Onboarding only takes a few second. Follow the . Read the channel rules, choose what channels you’ll like to explore, and verify your account.
To get onboarded is quite simple - If you want to keep up with the latest trends and community discussion, you can . Follow the prompt and verify your identity!
Decentralized Autonomous Organizations (DAOs) have emerged as a revolutionary model for community-led governance and decision-making in the blockchain space. As DAOs proliferate across various blockchain networks, understanding the tools and workflows that enable their functionality becomes increasingly important. This is particularly true for governance, decentralized finance (DeFi), and treasury management—key pillars that define the effectiveness and sustainability of a DAO.
The primary aim of this research report is to provide an in-depth analysis of the tools and workflows employed by active DAOs on other blockchain networks, specifically Ethereum and Bitcoin. By focusing on governance mechanisms, DeFi applications, and treasury management strategies, we aim to glean insights that could be beneficial for DAOs operating on the Cardano network, including our own.
This report covers an analysis of 10 DAOs selected based on their activity, user base, and token traffic. Each DAO will be examined for the tools they use in governance, DeFi, and treasury management, along with a brief overview of their workflows in these areas.
Here are the DAOs we have focused on:
The findings from this research will not only serve as a knowledge base but also guide the strategic planning and tool selection for DAOs on the Cardano network. DAOs on some blockchains like Ethereum have a longer history than Cardano DAOs and they have encountered problems Cardano DAOs have yet to experience. Understanding the best practices and effective tools in these areas will enable us to optimize our own operations and contribute to the broader Cardano DAO ecosystem.
To ensure the relevance and applicability of our research findings, we employed a rigorous selection process to identify DAOs for study. The DAOs were chosen based on the following criteria:
We looked for DAOs that have shown consistent activity in terms of proposals, voting, and community engagement. High activity levels often indicate a well-functioning governance system and a committed user base.
DAOs with a large and diverse user base were prioritized. A broad user base often suggests a more robust ecosystem and provides a wider range of perspectives on governance and treasury management.
We considered the volume and frequency of token transactions within the DAO. High token traffic is usually a sign of active financial engagement, making the DAO relevant for studying decentralized finance tools and treasury management.
We have categorized the tools we found into three categories which are Governance, Decentralized Finance, and Treasury Management.
Llama:
Llama is a fullstack platform for onchain governance and access control. Securely take action using onchain policies and custom execution strategies.
Users:
Uniswap
Snapshot:
A gasless, off-chain governance tool for creating and voting on proposals.
Users:
Uniswap
Bankless
Aave
Lido
Illuvium
1Inch
Balancer
Aragon:
Provides a framework for creating and managing DAOs, including governance and voting mechanisms.
Users:
Decentraland
Lido
Boardroom:
A governance management platform that allows for proposal creation, voting, and delegation.
Users:
Decentraland
Compound
Spark Protocol:
Spark is a decentralized non-custodial liquidity market protocol where users can participate as suppliers or borrowers.
Users:
MakerDAO
Parcel:
A treasury management tool designed for DAOs, offering features like budgeting and financial reporting.
Users:
Compound
Tally:
A governance and voting platform that also provides treasury management features.
Users:
Compound
Tenderly:
A monitoring, debugging, and analytics platform for Ethereum smart contracts.
Users:
Aave
Chainlink:
A decentralized oracle network, often used to provide real-world data to smart contracts.
Users:
MakerDAO
OpenZeppelin:
A library for secure smart contract development, often used in DeFi projects.
Users:
Compound
Kleoverse:
Kleoverse is a DAO tooling app and credentialing platform that maximizes the efficiency of developers, community contributors, and DAOs.
Users:
Bankless
Our research into 10 DAOs across various blockchain networks has revealed a diverse set of tools and workflows employed. We found that DAOs often use a combination of specialized tools to meet their unique needs and objectives.
In the realm of governance, we observed a focus on postponing on-chain votes as much as possible. This is expected since on some blockchains like Ethereum, gas fees can be very high. DAOs often use a three step votes. These steps are discussion, off-chain vote, and the on-chain votes. The disssuions are done on Discord servers or discussion forums. Off-chain votes are conducted to eliminate unpopular proposals having a cost on DAO.
DAOs often use tools for their governance. As can be seen above, Snapshot is the most popular tool used by the DAOs since it offers off-chain voting capability.
For Infrastructure, smart contract development and oracle solutions are found. Developing smart contracts and oracles are extremely difficult and vulnerable tasks. It is expected to see DAOs use other sources to implement their own infrastructures. Most governance tools also provide the necessary sets of smart contracts to the DAOs.
When it comes to treasury management, analytics and automation features are highly valued. DAOs are leveraging these tools to gain better insights into their financial health and to automate routine treasury tasks. In addition to the tools we found, lots of DAOs use their on multisig wallets for their treasury managements.
This research is centered on Compound DAO. One of the vying decentralized finance protocol mankind has ever witnessed. In this research, we'd learn about the DAO tools used by Compound DAO and how the tools are used in their governance process. We'll also discuss about the Compound DAO utility token and how users can get the token.
Compound is a decentralized finance, Ethereum-based project that allow borrowers to take out loans and lenders to provide loans via locking of assets into the protocol. The protocol was built to harness fast, efficient, and decentralized financial system for peer-to-peer lending.
Compound DAO has an utility token known as "COMP." The COMP token is used to govern the platform and it also serve as a medium of reward for users using its lending and borrowing services. A COMP holder can participate in decision making process for the DAO, and prolosals. COMP holders can also assign their voting rights to another user to vote on their behalf.
The Compound protocol is governed and upgraded by COMP token holders using three distinct components:
The COMP Token
Holding the governance token is pivotal if you want to participate in governance. As a COMP token holder, you can delegate voting right to yourself or any addresses of your choice. Before any DAO member can create governance proposals, he must have at least 25,000 COMP token delegated to his address. Additionally, any address can create an Autonomous proposal by locking 100 COMP token, it would become a governance proposal after being delegated 25,000 COMP.
Governance Module/Governance Bravo
This is the second step towards creating a Compound governance proposal. The governance module allows addresses that have amasssed 25,000 COMP to propose changes to Compound protocol. The proposal needs at least 400,000 vote cast before it is queued in the Timelock and can be implemented after 2 days. Tally is one of tools used for the on-chain voting and delegation process.
Timelock
This is the last stage of the Compound governance process. Each protocol contract is controlled by the Timelock contract. Timelock contract is responsible for queuing and executing all proposals that have reached the governance vote. OpenZeppelin plays a paramount role. Smart contracts are written by humans, and humans makes mistake in both coding and relationship. Smart contracts can be compromised via loophole in codes. OpenZeppelin provides security and audits the Compound protocol for safe voting process.
DAO tools used by Compound DAO
When it comes to the treasury side of things, Parcel is DAO tool you should be on the lookout for. Parcel is a treasury management and compensation tool designed to help manage the outflows of funds within a DAO. Parcel has worked with over 200+ DAOs (as of December 2021) including Compound Grants. Parcel helps DAOs to alleviate the manual disbursement process within their community.
OpenZeppelin exists to be an open-source framework for building secure smart contracts. Software developers and organizations (especially decentralized ones) uses OpenZeppelin because it provides a complete suite of security products and audit services.
Boardroom is another promising governance portal for DAOs. With Boardroom's framework, DAOs can perform standardized operations like voting, delegationg, and participate fully in governance processes with their community.
Tally is a cutting-edge voting and governance analysis tool that allows DAOs to vote on active on-chain proposals, delegate votes to third party, and also view previous proposals. Tally allows users to see who an individual voted for, the percentage of voting rights; whether a user voted for or against, or abstained for a proposal - this enhances transparency in the voting process.
Any user looking to get the COMP token can purchase it on DEX exchange platforms. More so, Compound platform also reward users with extra token when they interact with the Compound market by (borrowing, withdrawing or repaying the asset).
This report looks at the technology, blockchain based or not that enable decentralized organizations, DAO tools, governance modules, token engineering, security, privacy.
We have found DAO tools that are used by DAOs on various blockchains during our DAO research. We wrote our own deep dive documents on some of them and gathered resources on others. These tools are categorized into the categories below and as can be seen, most tools fall into multiple categories since lots of tools aim to be all in one tool to create and operate a DAO.
More resources can also be found in the DAO Research Document and the individual DAO Research docs.
Paideia
Wonderverse
Charmverse
Llama
Snapshot
Aragon
Boardroom
OpenZeppelin
SourceCred
Kleoverse
Charmverse
Wonderverse
Parcel
Tally
Charmverse
Coordinape
Kleoverse
SourceCred
Wonderverse
Cardano ecosystem currently has a focus on Governance and Smart Contract Development tools. The reason behind this is, the Cardano ecosystem is fairly new and the main problem the ecosystem has encountered is the entry barrier for new people. These tools aim to bring down the entry barrier for new people to come in. The other reason is developing smart contracts for the Cardano blockchain is hard to master due to the usage of functional programming, people with technical backgrounds need to invest their time to learn and deploy Cardano smart contracts. Tools like Smart Contract Development tools help DAOs to deploy their own smart contracts easily.
DAO tools on other blockchains especially Ethereum tools mostly focus on Treasury Management and Membership and Reputation tools. These tools are show us that DAOs on other chains experience the issues of community management, treasury managemnent and reward sharing. The Governance tools on other chains also have a difference to the Cardano tools of the same category and it is the way they approach voting. Gas fees on some blockchains like Ethereum can be significantly higher than Cardano. DAOs on cardano can have the luxury of ignoring these fees but Ethereum DAOs need to be very careful on what they vote on. As it is expleined in more detail in the DAO Research section, DAOs on Ethereum have implemented voting mechanisms that try to eliminate poor and unpopular proposals to have on-chain votes to control the cost of voting.
Another important thing to mention is, there are not many DAO tools on Cardano. We have conducted one of the most comprehensive researches on Cardano DAO tools and currently there are in total 12 tools that fit into the category of DAO Tools. On Ethereum, there are lots of DAO tools, we have found many but it is impossible to give the exact number of tools.
This research is about entering popular DAOs and learning about the tools they use, and their DAO operations.
While we conducted our research on other chains, we encountered some projects that don't have any equivalent on Cardano blockchain. We have decided to include interesting projects into our report.
COTI is a blockchain solution that aims payments faster, cheaper, more secure, and more personalized. What differentiates COTI from other blockchains is its use of Proof of Trust consensus mechanism. COTI also has a cross-chain bridge which connects COTI to Ethereum.
Ensuro is a blockchain protocol that provides capital coverage for insurance risks. It is a licensed (re)insurer on blockchain.
Kleros is a decentralized dispute resolution protocol for use on smart contract platforms, which has been implemented on Ethereum. It acts as a decentralized third party capable of providing decisions on the correct result when applying a set of rules to questions ranging from simple to highly complex.
This research is centered on Uniswap, we’re looking to get insights into the DAO tools Uniswap uses to perform their operations and to harness the growth of their DAO.
Uniswap is a platform that allow individuals to trade their crypto assets without any involvement of centralized entities. Uniswap, owing its existence to Ethereum blockchain and it's governered by UNI token holders.
The UNI token can be used by community members to propose and vote on proposals and implement changes to the Uniswap protocol. Uniswap uses their own platform for governance; votes are delegated and cast through the Uniswap's governance portal. They also use off-chain tool like as a voting interface.
Snapshot is used by the UNI holders to vote on proposals off-chain after reaching the governance proposal stage. Votes on Snapshot are weighted by the number of UNI delegated to the address used to vote.
Discussions takes place on the , in order for a vote to pass, it must achieve quorum of 4%. If the majority of votes amasses 4%, the proposal is queued in the timelock. The community members have 7 days to cast their votes if the proposal is put forward.
how do they use it? Community members must have an account before they can participate in governance - there are 3 preliminary drafts for the Uniswap governance process:
1. Temperature Check:
The temperature check is to determine if there is sufficient will to make changes to the status quorum.
2. Consensus Check
The purpose of the Consensus check is to establish formal discussion around a potential proposal.
3. Governance Proposal
This is the final step of the governanace process. The proposal should be based on the winning outcome from the "Consensus Check" and can consist of one or multiple actions. Once the propose function has been called, a two day voting delay begins, after that, a seven day voting will begin.
Link:
Llama provides treasury management as-a-service for DAOs. Llama can be hired for help when it comes to spending, borrowing, reporting and asset allocation within DAOs.
Snapshot is an open-source that organizations, especially decentralized ones, can use to facilitate the quality of voting within the DAO and proposal processes. With Snapshot, users can create proposals and vote off-chain. Snapshot allows users to choose multiple voting systems and tools to customize governance for the community; instead of using Discord reactions or Google forms.
Rabbithole hole is a platform that allows individuals to discover and use new decentralized apps (Dapps), protocols, or crypto platforms while earning cryptocurrencies in return.
Messari Governor is a database and aggregator of many DAOs; it consist of many proposals, web3 projects and tools.
Firstly, you need a discord account. You'd be asked why you want to join their discord, select your interests - Defi, NFT, or DAOs, and that's it - you've been onboarded!
Additionally, users can get Uniswap governance token (UNI) by providing liquidity via a pair of assets like ETH or DIA. Users can also purchase the UNI token on different DEX platforms.
This research is centered on MakerDAO. We want to know more about the DAO operation and what DAO tools they use in running a smooth community.
MakerDAO is known to be a peer-to-peer decentralized protocol lying on Ethereum blockchain. It facilitates borrowing, lending, and savings. The protocol enables its users to borrow funds denominated in DAI. To do this, a user needs Ethereum and a MetaMask wallet. Furthermore, MakerDAO enables the generation of Dai, the world's first unbiased currency, and leading decentralized stablecoin in the planet.
A community of MKR token holders govern the Maker Protocol. With the MKR token, holders can vote on changes to the Maker Protocol. Just so you know, anyone can submit proposals for an MKR vote, not only MKR holders.
MakerDAO uses their own tool for governance operation, it includes the MakerDAO’s Forum and the MakerDAO’s Governance Portal.
Forum Is the Heart of the Maker Community. MakerDAO’s Forum is the place for community members to discuss important topics that can lead to significant changes to the Maker Protocol. These may include critical discussions around governance and risk, community development, and Maker Improvement Proposals (MIPs) which enable community members to propose updates, and additions to the Protocol and DAO.
After a successful discussion on the forum, the MakerDAO community uses the to voice their opinion. Voting is conducted on MakerDAO’s own Governance Portal; The portal allows anyone to view governance proposals, and it also enables MKR token holders to vote on proposals easily.
The Maker Governance process includes proposal polling and Executive Voting.
Proposal Polling
This is the first step taken to ensure proposer governance. The Proposal polling is conducted to establish a rough consensus of community sentiment before any Executive Votes are cast. This helps to ensure that governance decisions are considered throughtfully and reached by consensus prior to the voting process itself.
Executive Voting
Next, is Executive Voting. Executive Voting is conducted by the community members to approve (or not) changes to the state of the Maker protocol. For example, there could be a vote to ratify Risk Parameters for a newly accepted collateral type.
What Does MakerDAO Use To Conduct This Votes?
MakerDAO uses smart contracts to manage each type of vote. A Proposal Contract is a smart contract with one or more valid governance actions programmed into it. They’re programmed to be executed only once. After execution, it cannot be reused anymore.
Any Ethereum Address can deploy valid Proposal Contracts. MKR token holders can then cast approval votes for the proposal that they want to elect as the Active Proposal. The Ethereum address that has the highest number of approval votes is elected as the Active Proposal.
Chainlink is a decentralized network of nodes that provide data and information from off-blockchain sources to on-blockchain smart contracts via oracles.
Resources
MakerDAO, the issuer of DAI, the leading decentralized stablecoin, has launched Spark Protocol, a new lending platform that aims to bolster DAI's capabilities. Spark Lend is the protocol's debut offering and allows users to borrow or supply Ether, stETH, DAI, and savings DAI at competitive rates.
Resources
The only way to get the MakerDAO utility token (MKR) is by purchasing the token on MakerDAO's own platform or through an exchange like Binance.
The Ocean is what we call the vast ecosystem of blockchains. DAOs, the tools they use, and what the ADA ecosystem needs to build in the future to catch up and compete with other chains.
Beyond Cardano lies a vast ocean of blockchains. Our research covers a tiny slice of it. As an open DAO, we are mostly interested in DAOs and DAO tools, but we have also researched some other technologies on other chains that may be useful for Cardano builders.
Here you will find:
Deep dives into top DAOs like Uniswap and AAVE and the tools they use to operate their DAO in
Reviews and analysis of various DAO tools that we found were in frequent use in our
This research was conducted on AAVE DAO. Why? We want to learn more about the DAO tools they use.
AAVE is one of the fastest-growing protocols that facilitates decentralized and non-custodial lending, allowing you to earn interest and borrow crypto assets. AAVE was designed to help remove the need for centralized entities such as banks by allowing users of the protocol to loan, and lend crypto assets with other users.
AAVE is the main token on the AAVE protocol. AAVE allows users to participate in the project's governance model. For example, users can vote on a governance proposal that aims to improve a certain feature or increase yields within the protocol or the DAO.
Creating an Aave Request for Comments (ARC) is the first step in the governance improvement process. AAVE allows anyone to participate in the governance forum to participate in discussions that will improve the protocol.
Secondly, AAVE will use Snapshot to gauge community sentiment and preferences.
The third step in the governance improvement process is to prepare the Aave Improvement Proposal (AIP) based on the rough consensus gathered via snapshot and prepare the necessary payloads. Note that creation and submission of the AAVE Improvement Proposal (AIP) is exclusive to community members who has enormous proposition power.
Lastly, you can submit the AIP to the protocol for a governance vote. The AIP is uploaded online using IPFS, the voting is cast off-chain using the AAVE Snapshot Poll.
If successful, the AIP's payload will be automatically executed and implemented.
Where the tools are used!
Snapshot Aave uses an off-chain tool know as “Snapshot” to host community discussion and measure initial sentiment around initiatives or proposals that will eventually be put through their on-chain governance mechanism.
Snapshot, a decentralized governance platform that allows DAOs to easily create and vote on proposals without spending on gas fees! DAOs can use various voting types so they can tailor the voting process to their needs.
Resources
Tenderly is a Web3 development platform that accelerates smart contract development and provides a fully integrated developer experience. Tenderly also combines in-depth debugging tools with observability and blockchain infrastructure.
Resources
The only way to get the AAVE governance utility token to buy the token on an exchange.
This research is conducted on Bankless DAO. Our aim is to discover the popular DAO tools they use for their DAO operation, including governance, treasury management and more.
BanklessDAO's mission is to help the world go Bankless. They’re creating a user-friendly onramps for people to discover decentralized financial technologies through education, media, and culture. Some of they’re values are: helping people adopt decentralized finance, promoting collective decision making and decentralized governance.
Before user proposals can get to the final stage, it must pass through this stages:
1.
Bankless DAO governance begins in the Bankless DAO forum. The BANK token-holders must first publish their proposals on the forum to get feedback from the community members. This process is used to eliminate proposals that doesn’t meet the DAO values and standard.
2. Snapshot
BanklessDAO uses an off-chain voting platform known as Snapshot. Snapshot is used by the DAO for decisions related to the governance process, treasury allocation, and organizational structure. Any BANK token holder can vote in a Snapshot poll. The more BANK tokens they hold, the more voting power they have.
BanklessDAO uses the off-chain voting system; Snapshot is the tool used to vote on proposals.
Snapshot is a decentralized governance platform that enables DAOs to easily create and vote on proposals without spending on gas fees! DAOs can use various voting types so they can tailor the voting process to their needs.
Resources:
Boardroom is a governance platform that is designed to help DAO contributors make faster, smarter, and more informed decisions. The Boardroom API is an industry-leading source of governance data, such as delegation stats, vote history, proposal information as well as treasury.
Meanwhile, Boardroom is the source of governance data for BanklessDAO. Every information regarding proposals, number of users that voted, treasury updated can be found on Boardroom.
Resources:
Kleoverse is a DAO tooling app and credentialing platform that helps to maximize the efficiency of developers, community contributors and DAOs. Kleoverse helps in finding jobs, bounties, and organization-finding service just like LinkedIn. This is one of the platform to find job as a web3 developer.
Resources:
Onboarding on Bankless DAO is an easy step to follow, simply use the discord invite and verify that you’re human by answering the Captcha question, you’re in.
The only way you can participate in decision making or have a say in their governance process is by holding the native utility token (BANK). You can buy on various exchanges like Binance.
| DAO | Tool 1 | Tool 2 | Tool 3 | Tool 4 |
|---|---|---|---|---|
(Video)
(Video)
Simply read and agree to the compound server rules, click complete. You've been onboarded!
(Video)
(Video)
(Video tutorial)
(Video tutorial)
Onboarding is pretty much easy. Follow the Read the channel rules, react to an emoji and verify your account.
.
Any interested in contributing to the AAVE DAO can . Verify that you’re human by answering the Captcha question, you’re in.
Decentraland
Aragon
Boardroom
Compound
Parcel
OpenZeppelin
Boardroom
Tally
Bankless
Snapshot
Boardroom
Kleoverse
Maker
Chainlink
Spark Protocol
Aave
Snapshot
Tenderly
Lido
Snapshot
Aragon
Illuvium
Snapshot
1inch
Snapshot
Balancer
Snapshot
Author: Emir Olgun Date: 02 July 2023
This is a research about finding the DAO tools used by the most popular DAOs on variety of Blockchains and why they use these tools. In this document, we researched Lido DAO. Lido is a liquid staking solution. Lido allows users to stake their assets - without locking or maintaining infrastructure - whilst participating in on-chain activities, e.g. lending, LPing.
Lido DAO governance process can be seen here in detail:
Lido Governance has three steps that are Discussion step, off-chain vote, and on-chain vote. This process is used to eliminate possible unnecessary proposals or improve proposals, and prevent financial burden and voter fatigue of on-chain votes for unnecessary and poorly designed proposals.
Lido DAO proposals start in the Resarch Forum. These proposals are discussed on the forum and get community feedback.
Proposals go through a phase of
improvements
objections
Improvements
By community feedback and discussions the proposals are improved.
Objections
The proposals are further improved with the objections from the community.
Timeframe: 7 days
After a proposal passed the discussion step on the forum, it is voted on the Snapshot platform. The step of off-chain voting brings down the financial burden of on-chain voting by eliminating unpopular proposals. Lido DAO has a governance token called LDO(Lido DAO Token). This token is used to vote on both off-chain and on-chain votes.
The off-chain voting parameters of Lido DAO are:
Voting power is linearly proportional to the token balance of the voter.
Minimum quorum is more than 5% of the total token supply must participate.
Timeframe: 7 days
At least 24 hours before Aragon vote.
This is the final step of governance. Aragon is used to conduct on-chain voting. This vote has gas fees, so Lido DAO combines several proposals into packages to reduce operational burden and voting fatigue. These are called Omnibus Votes. People who have LDO token can participate the votes.
The on-chain voting parameters of Lido DAO are:
Timeframe: 72 Hours and has two phases:
Main Phase lasts 48 hours where voters can vote both For and Against
Objection Phase lasts 24 hours and voters can vote against or change vote from for to against.
Minimum quorum: More than 5% of total tokens must vote and more than 50% of participated tokens must vote For
Snapshot is a voting platform that allows vote easily without gas fees. The reason behind gas fee free vote is these votes are off-chain votes. A DAO can customize the the voting process according to their needs on this tool.
Official Resources
Other Resources
Aragon is an on-chain DAO governance platform. Aragon allows DAOs to conduct governance on-chain without writing a single line of code. The votes on Aragon can be customized to the specific needs of the DAO.
Official Resources
Other Resources
Joining Lido Discord is a simple process, joining the server and accepting some conditions are the requirement. However, only way to get LDO(Lido DAO Token) is to buy it on variety ofexchanges. LDO is needed to have a say in Lido DAO governance process.