Objectives
Simplify DAO Creation:
SmartDAO aims to eliminate technical barriers by providing a user-friendly platform for individuals and organizations to effortlessly create their own DAOs on the æternity Blockchain. Through an intuitive interface, users, regardless of their coding expertise, can navigate and establish their decentralized governance structures seamlessly.
Efficient DAO Operations:
Integrate smart contracts to automate DAO operations, such as fund management, proposal creation, voting, and execution, streamlining governance processes.
Diverse DAO Types:
Offer a spectrum of predefined DAO types to cater to varied organizational needs. By providing options such as Basic DAOs, Open DAOs, and Company-Style DAOs, SmartDAO enables users to choose the governance model that best aligns with their specific objectives and operational requirements.
Enhance Accessibility:
Foster inclusivity within the blockchain ecosystem by democratizing access to decentralized governance. SmartDAO empowers individuals and entities, irrespective of technical proficiency, to actively participate in shaping the future of their communities and organizations through streamlined DAO creation and management.
Facilitate Ecosystem Growth:
Contribute to the expansion and robustness of the æternity Blockchain ecosystem. By encouraging the creation of diverse and innovative DAOs, SmartDAO seeks to stimulate collaboration, innovation, and new use cases within the æternity community, fostering a vibrant decentralized governance landscape.
Encourage Adoption and Engagement:
Promote widespread adoption of blockchain technology by showcasing the practical applications and benefits of DAOs. SmartDAO aims to attract a broad spectrum of users, from grassroots community organizations to established enterprises, by highlighting the simplicity and adaptability of its DAO creation and management platform.
Continuous Development and Improvement:
Commit to ongoing refinement and enhancement of SmartDAO. This includes iterating on the platform’s features, optimizing user experience, and integrating community feedback to ensure a continuously evolving and responsive platform that meets the evolving needs of users and the blockchain ecosystem.
SmartDAO & its Features
SmartDAO goes beyond conventional DAO frameworks, providing a wide range of features that expand decentralized decision-making. With interactive community areas, refined voting systems, and adaptable governance structures, SmartDAO boosts effectiveness and inclusivity. Additionally, its native token serves as the governing asset, empowering users.
SmartDAO currently features three types of DAOs:
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Basic DAO: The Basic DAO within SmartDAO operates akin to a multisignature wallet but with enhanced interaction capabilities. Initially, members are added during creation, and subsequent additions or removals are conducted through proposal submissions. The Basic DAO is similar to the multisig wallet but with additional SmartDAO functionalities like nuanced voting mechanism, delegation, etc. The Basic DAO can be upgraded to an Open DAO through a proposal if the majority agrees via vote. One crucial aspect is that each member possesses equal voting power within the Basic DAO structure.
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Open DAO: Contrasting the Basic DAO, an Open DAO’s membership management relies on an AEX-9 token. Any individual possessing this token gains access to participate in proposal creation, voting, and other DAO activities. The voting power within an Open DAO is contingent upon the number of tokens owned by each participant. SmartDAO, at its core, also embodies the principles of an Open DAO, ensuring inclusivity and active engagement from our token holders. As holders of our SmartDAO Token, individuals possess the inherent ability to participate, contribute, and shape the trajectory of SmartDAO’s development.
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Company-Style DAO: A Company-Style DAO combines elements of traditional corporate structures with decentralized governance, introducing hierarchy, distinct roles, and membership tiers. Members may hold varying levels of tokens and specific rights, reflecting their organizational roles. While maintaining transparency and decentralized decision-making, this hybrid model enables a dynamic evolution of roles and structures based on community needs and objectives. A Company-Style DAO, thus, seeks to merge the best of both corporate and decentralized governance worlds, fostering efficient decision-making, structured leadership, and community participation within a single, innovative framework.
The operational core of the Company-Style DAO is structured around a dynamic board featuring a number of elected council members. Initially established by an independent team during the DAO’s inception, the board operates with a flexible tenure spanning over a configurable time period. Council seats are subject to dynamic elections and regular reviews, empowering the community to replace members through a voting threshold that adapts to the DAO’s evolving needs. Council members can receive monthly compensation in the DAO’s native token, with a vesting period for a percentage of the token. Prior to unlocking funds, the board consistently validates proposed milestones, ensuring a responsible and adaptive approach to fund allocation. The governance model integrates a quadratic voting system, promoting dynamic decision-making power and preventing any potential disproportionate influence.
SmartDAOs Basic Functionalities:
SmartDAO includes basic features of a DAO such as:
Proposal Creation and Management:
SmartDAO enables members to propose initiatives, changes, or actions within the DAO, initiating the decision-making process. Members can create, vote for and against proposals, fostering a transparent and participatory environment where ideas can be articulated and considered by the community.
Membership Control:
The membership models depends on the type of DAO
Basic DAO: Managed exclusively through proposals, ensuring democratic involvement in membership alterations.
Open DAO: Relies on possession of an AEX-9 token for membership access.
Company-Style DAO: Token-based membership, with additional roles assigned through elections.
Voting Mechanisms:
Implementing a transparent and decentralized voting system, SmartDAO enables members to participate in decision-making processes by casting votes on proposed actions or initiatives within the DAO. In the Basic DAO model, all members of the DAO have equal voting power, while for the Open DAO model, voting power is linked to token ownership, promoting a more token-weighted decision-making structure. Each DAO has a voting time period after which the votes are closed automatically, and this voting time period is set initially when creating the DAO and can be changed later through a proposal.
Proposal Execution and Fund Management:
Once a proposal achieves the required quorum vote with a majority in support, the DAO autonomously executes approved actions. Furthermore, the allocation and distribution of funds or resources are conducted through the decentralized governance process of approved proposals. Importantly, there are no administrators with sole authority over proposal execution or fund management, ensuring a fully decentralized decision-making mechanism within the DAO.
DAO’s Treasury :
Each DAO has its own Treasury which is managed by the DAO’s smart contract. Smart DAO has an interface that displays the current balance of the Treasury and graphical visualizations to provide more insights. This Treasury can hold Aeternity native tokens and AEX-9 tokens. Not only can funds be spent through community-approved proposals, but SmartDAO’s UI also empowers members to directly contribute to the treasury through donations.
DAO Upgrade Paths :
Basic DAO:
- Can be upgraded to a Company Style DAO
- Can be upgraded to an Open DAO
Open DAO:
- Can be upgraded to a Company Style DAO
Company-Style DAO:
- Can be upgraded to an Open DAO
Enhanced Features of SmartDAO:
Additionally, SmartDAO incorporates advanced features such as :
Interactive Community Section:
SmartDAO fosters a vibrant community by providing a dedicated space for users to engage in discussions, collaborate on ideas, share insights, and build relationships. This interactive section serves as a hub for brainstorming, fostering collaboration, and cultivating a sense of community among SmartDAO users.
Commentary with Voting:
Beyond traditional voting mechanisms, SmartDAO introduces a novel feature allowing users to augment their votes with detailed opinions and comments. This functionality enables members to articulate their perspectives, convince others of their stance, or provide valuable insights that contribute to informed decision-making within the DAO.
Delegated Voting:
SmartDAO’s delegated voting empowers users to entrust their voting rights to trusted delegates via a dedicated smart contract. This contract acts as a secure registry, tracking delegations and scopes (e.g., all proposals). Users interact with the contract to delegate their votes, and when a delegate casts a vote, the voting contract tallies it based on delegated authority. The contract prevents double-voting and delegation loops, while revocable delegations ensure users retain control. A user-friendly interface simplifies delegation, vote tracking, and delegate monitoring, fostering inclusive and efficient decentralized decision-making.
Intra-DAO Communication:
Facilitating meaningful discourse within the DAO, SmartDAO integrates a communication channel where members can engage in discussions specific to their respective DAOs. This feature fosters a collaborative environment, allowing members to express opinions, share insights, and collectively shape the trajectory of their DAO.
Monitoring and Analytics
SmartDAO empowers its members with robust monitoring and analytics tools, deep diving into the DAO activity, analyzing voting patterns, proposal success rates, fund allocation, project completion rates, and community engagement. By monitoring these key indicators, the DAO can gauge its impact and adjust its strategies to maximize its positive influence.
How it works
Open DAO
Creating a DAO:
- Initiation: A founding member triggers the DAO creation process within SmartDAO.
- DAO Type Selection: Select Open DAO from the list of available DAO types.
- Token creation: Specify token details (name, symbol, total supply) and address(es) to mint the token too. An extended AEX-9 token similar to ERC20 Votes is deployed for the DAO with the provided information.
- DAO Customization: Configure the initial governance parameters, such as voting time, support thresholds, quorum as per the DAO’s specific needs.
- Additional Details & Deployment: Provide supplementary DAO information—like display picture, subdomain, description, and KYC details—and deploy the DAO.
Creating a proposal:
- Access Proposal Creation: Navigate to the designated area within your DAO and select “create proposal.”
- Define Proposal: Write a title, summary and select a proposal type depending on the action to be performed. Actions that can be voted on include transfer and modification of DAO settings such as voting period, quorum and support threshold.
- Enter Proposal details: Enter additional details based on the type of proposal selected such as receiving wallet for a transfer proposal
- Review & Publish: Verify proposal accuracy and publish proposal.
Voting on a proposal:
- Access Proposal: Navigate to the DAO you are a part of and browse through the list of active proposals.
- Review Proposal Details: Carefully read proposal details and understand the actions proposed.
- Cast Vote: Cast your vote for or against the proposal. Your voting power is equal to the number of tokens you own when the proposal was created. You are still able to use your token while voting and after voting. However, transferring your token does not transfer your voting power(See Delegation).
- (Optionally) Add commentary to your vote: Add commentary and detailed opinion to your vote to influence decision making within the DAO.
- Confirmation: Review your vote and submit the vote to confirm your participation.
Executing a proposal:
- Quorum and Support Threshold: Once a proposal voting time has ended and the minimum percentage of the total token supply has voted on it with a number above the support threshold(usually 50%) voting in support of the proposal, The proposed action is now ready for execution.
- Execution process: As a smart contract cannot execute itself, the execute proposal function can be called by any member of the DAO, while the DAO verify the proposal status and performs the proposed action on successful verification.
Delegating voting power:
- Access Delegation Interface: Locate the delegation feature within the DAO you are on.
- Choose Delegate: Select delegate from the list of members on the DAO.
- Confirm & Authorize: Review delegation details and confirm your choice. Your voting power from then on is added to the voting power of your delegate when they vote.
Basic DAO
Creating a DAO:
- Initiation: A founding member triggers the DAO creation process within SmartDAO.
- DAO Type Selection: Select Basic DAO from the list of available DAO types.
- Add initial members: Provide wallet addresses of all DAO members. Note however, that subsequent members can only be added through a voting and consensus of all members.
- DAO Customization: Configure the initial governance parameters, such as voting time, support thresholds, quorum as per the DAO’s specific needs.
- Additional Details & Deployment: Provide supplementary DAO information—like display picture, subdomain, description, and KYC details—and deploy the DAO.
Creating a proposal:
- Access Proposal Creation: Navigate to the designated area within your DAO and select “create proposal.”
- Define Proposal: Write a title, summary and select a proposal type depending on the action to be performed. Actions that can be voted on include transfer, modification of DAO settings and addition and removal of DAO members.
- Enter Proposal details: Enter additional details based on the type of proposal selected such as receiving wallet for a transfer proposal
- Review & Publish: Verify proposal accuracy and publish proposal.
Voting on a proposal:
- Access Proposal: Navigate to the DAO you are a part of and browse through the list of active proposals.
- Review Proposal Details: Carefully read proposal details and understand the actions proposed.
- Cast Vote: Cast your vote for or against the proposal. All members have equal voting power, except in cases whereby a member has delegated his voting power to another member
- (Optionally) Add commentary to your vote: Add commentary and detailed opinion to your vote to influence decision making within the DAO.
- Confirmation: Review your vote and submit the vote to confirm your participation.
Executing a proposal:
- Quorum and Support Threshold: Once a proposal voting time has ended and the minimum members required have voted on it with a number above the support threshold(usually 50%) voting in support of the proposal, The proposed action is now ready for execution.
- Execution process: As a smart contract cannot execute itself, the execute proposal function can be called by any member of the DAO, while the DAO verify the proposal status and performs the proposed action on successful verification.
Delegating voting power:
- Access Delegation Interface: Locate the delegation feature within the DAO you are on.
- Choose Delegate: Select delegate from the list of members on the DAO.
- Confirm & Authorize: Review delegation details and confirm your choice. Your voting power from then on is added to the voting power of your delegate when they vote.
Company-Style DAO
Creating a DAO:
- Initiation: A founding member initiates DAO creation within SmartDAO.
- DAO Type Selection: Select Company Style DAO from the list.
- Council Size and Roles: Define the initial number of council seats and their associated roles and responsibilities.
- Token Creation (Optional): If using a token, specify details (name, symbol, supply) and minting addresses.
- DAO Customization: Configure governance parameters (voting time, thresholds, quorum).
- Additional Details & Deployment: Provide DAO information (display picture, subdomain, description, KYC) and deploy.
Creating a Proposal:
- Access Proposal Creation: Navigate to the designated area within your DAO and select “create proposal.”
- Define Proposal: Write a title, summary, and select a proposal type (e.g., transfer, modification of DAO settings, project approval).
- Enter Proposal Details: Provide additional details based on the proposal type.
- Review & Publish: Verify proposal accuracy and publish.
Voting on a Proposal:
- Access Proposal: Navigate to the DAO and browse active proposals.
- Review Proposal Details: Carefully read the proposal’s content and actions.
- Cast Vote: Council members cast votes for or against using quadratic voting.
- (Optional) Add Commentary: Share detailed opinions to influence decision-making.
- Confirmation: Review and submit vote to confirm participation.
Executing a Proposal:
- Quorum and Support Threshold: Once voting ends and minimum required votes are reached with support above the threshold, the proposal is ready for execution.
- Execution Process: Any council member can call the “execute proposal” function. The DAO verifies proposal status and performs the action upon successful verification.
Milestone Validation and Funding Release:
- Propose Milestones: Council members propose milestones within proposals for funding allocation.
- Milestone Validation: The council validates proposed milestones before funds are unlocked.
- Fund Release: Upon validation, funds are released for the corresponding milestone.
Council Member Elections:
- Initiation: A council member or community member initiates the election process.
- Candidate Nomination: Eligible individuals are nominated for council seats.
- Campaigning: Candidates present their qualifications and visions for the DAO in the intra-DAO community.
- Quadratic Voting: Community members vote using quadratic voting to elect council members.
- Results and Transition: Election results are finalized, and new council members assume their roles.
Council Performance Reviews and Removal:
- Initiation: Any community member can initiate a performance review or removal process for a council member.
- Review or Removal Proposal: A proposal outlining concerns or reasons for removal is created.
- Community Voting: Community members vote on the proposal using quadratic voting.
- Outcome: If the removal threshold is met, the council member is removed.
To initiate a DAO upgrade on the SmartDAO interface:
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Access the DAO Settings: Locate the “Settings” tab within your DAO’s dashboard.
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Find the Upgrade Option: Click on the “Upgrade” or “DAO Type” section within the settings.
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Review Available Paths: Explore the upgrade options compatible with your current DAO type.
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Select Desired Path: Choose the upgrade path that best aligns with your community’s goals and aspirations.
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Initiate Proposal: Create a proposal outlining the upgrade details and rationale for community consideration.
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Gather Community Approval: Engage in discussions and secure the necessary votes to approve the upgrade.
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Execute Upgrade: Upon successful approval, follow the prompts on the interface to execute the upgrade process.
Link to a basic UI flow.
Funding Request
Total amount requested ($78,000)
Development and Implementation ($8,000):
Allocated funds will primarily support the development phase of SmartDAO expense on developing, prototyping, iterating, and rigorously testing innovative functionalities, meticulously implementing the core architecture and adhering to best practices in decentralization and secure execution. This allocation empowers our expert team to execute the development process with precision, ensuring the seamless construction and refinement of the SmartDAO application.
Developer Salaries ($25,000):
A significant portion of the grant will be utilized to compensate the development team and any technical staff involved in the creation and ongoing enhancement of SmartDAO.
Infrastructure and Hosting Costs ($5,000):
Funds will be allocated to cover expenses related to infrastructure setup, server costs, cloud services, and maintenance fees essential for hosting the SmartDAO application.
Domain Acquisition ($2,000):
Budget allocation will cover the purchase of necessary domain names to establish a recognizable online presence for SmartDAO, ensuring ease of access and user recognition.
Operational Expenses ($5,000):
Miscellaneous operational costs such as legal fees, administrative expenses, and other essential overheads required for the smooth functioning and sustainability of SmartDAO.
Marketing and Outreach ($10,000):
A portion of the grant will be designated for marketing efforts aimed at raising awareness and promoting SmartDAO within the æternity community and broader blockchain ecosystem. This includes targeted marketing campaigns, community engagement initiatives, and promotional activities to attract users and encourage adoption.
Contingency and Future Development ($23,000):
A contingency fund will be set aside to address unforeseen expenses and to support future iterations and improvements of SmartDAO, ensuring its adaptability and sustainability in the evolving blockchain landscape.
Roadmap and Timeline
This is our 24-week Accelerated Plan to develop SmartDAO
Key Milestones:
- Completion of core functionalities and initial testing (Week 12)
- Integration of advanced features (Week 16)
- Beta testing and user feedback collection (Week 20)
- Official launch and initial adoption phase (Week 23)
- Continuous improvement and iteration (Ongoing)
Phase 1: Foundation and Development (Duration: 16 weeks)
Week 1-2: Preparation and Team Setup
- Assemble the development team, define project requirements, and set up communication channels and tools.
Week 3-12: Design, Prototyping, and Core Development
- Develop initial design concepts and wireframes for SmartDAO’s UI/UX.
- Begin prototyping and user testing.
- Commence full-scale development of core functionalities: DAO creation, membership management, proposal submission, basic voting mechanisms, and SmartDAO’s token creation.
Week 13-16: Advanced Functionalities and Testing
- Implement delegated voting and commentary features.
- Conduct rigorous testing and quality assurance.
Phase 2: Feature Enhancement and Iteration (Duration: 8 weeks)
Week 17-20: Iterative Development and User Feedback
- Iterate on the platform based on user feedback from beta testing.
- Integrate intra-DAO communication and begin adaptive DAO transformation feature implementation.
Week 21-23: Optimization and Finalization
- Fine-tune SmartDAO’s performance, security, and user experience based on feedback and testing results.
- Prepare for the official launch.
Phase 3: Deployment and Expansion (Ongoing)
Week 24: Launch and Initial Adoption
- Officially launch SmartDAO to the æternity Blockchain community and wider audience.
- Initiate marketing and outreach campaigns to attract users and encourage adoption.
Week 24 and beyond: Post-launch Improvements and Growth
- Monitor user engagement, gather insights, and implement immediate improvements based on initial user behavior and feedback.
- Plan and prioritize the next phase of development based on post-launch data and emerging requirements.
Expected Impact
Elevating Governance Capabilities:
SmartDAO’s introduction on the æternity Blockchain significantly enhances the platform’s governance capabilities. By simplifying the creation and management of DAOs, it broadens the scope of decentralized decision-making, positioning æternity as a hub for innovative and inclusive governance structures.
Diverse Use Cases and Adoption:
SmartDAO’s versatile suite of features encourages the exploration of diverse use cases within the æternity ecosystem. This diversity attracts new users, from community-driven projects to established entities, thereby expanding the user base and fostering wider adoption of the æternity Blockchain.
Community Engagement and Collaboration:
With its interactive community spaces and robust communication channels, SmartDAO serves as a catalyst for heightened community engagement. It cultivates a culture of collaboration, enabling æternity users to actively participate in discussions, share ideas, and collectively contribute to the growth and development of the ecosystem.
Technological Advancements and Iterations:
The implementation of SmartDAO introduces new technological advancements and iterative developments within the æternity Blockchain. The platform’s adaptability, highlighted by the forthcoming feature allowing DAO transformation, showcases the blockchain’s responsiveness to evolving user needs and technological innovations.
Enhanced Reputation and Differentiation:
SmartDAO’s innovative approach to decentralized governance solidifies æternity’s reputation as a forward-thinking blockchain platform. By offering unique features and fostering a vibrant ecosystem of decentralized organizations, æternity stands out as a leader in promoting cutting-edge governance solutions within the blockchain space.
Long-term Ecosystem Resilience:
SmartDAO’s impact transcends immediate benefits, contributing to the long-term resilience of the æternity ecosystem. By nurturing a robust environment for decentralized decision-making, it lays the groundwork for sustained growth, adaptability, and community-driven innovation within the blockchain network.