Governance Vault
https://vault.governordao.org/
The following outlines the Governance Vault, as well as an overview of the contracts comprising the initial vault rollout and how the community can test and prepare these contracts for mainnet usage.
Contract | Address |
GDAO Token | |
xGDAO Governance Vault | |
Buyback Agent | |
POE | |
POE Purchase "Payment Splitter" | TBD |
FinnoSplitter (Auxiliary) | TBD |
Uniswap GDAO-ETH V2 |
Creating a working DAO is a challenging endeavor with numerous interactive parts. The nature of any business suggests that certain individuals must play privileged roles. This reality is sometimes at odds with the intentions behind the DAO ethos.
There are several strategies we can employ to maintain privileged/permissioned roles in a DAO model. Token holders can elect/appoint privileged roles. We can create checks and balances to keep privileged counter-parties honest. And as much as possible, we can automate operations and management in code.
The Governance Vault is a powerful, scaling, future-proof mechanism to bake Governor DAO accounting and finances into code. Modular smart contracts work together to handle incoming revenue and distribute per the rules set by token holders.
There are 3 Components to this Design:
1. On-chain product(s). On-chain products drive ETH and ERC-20 tokens to the Buyback Agent.
2. Buyback Agent - The Buyback Agent splits the incoming revenue stream in several different directions (earnings to the treasury, dividends to holders, DEX liquidity adds)
3. The xGDAO Vault - The xGDAO Vault manages the Buyback Agent and on-chain products and additionally organizes dividend distribution to token holders.
On-chain products (Payment Splitter) are public-facing and designed to automatically route incoming payments to the intended destination. For the Proof-of-Existence purchase contract, payments automatically handle referral commissions and payment price dynamically upgrades along a bonding curve per the number of sign-ups (more signups ⇒ higher price). These contracts are upgrading: variables like the % commission, Governor NFT multipliers, destination addresses for ETH, etc. can be upgraded (first by the team, and ultimately by xGDAO holders autonomously).
Buyback Agent reflects an “on-chain monetary policy” that receives all incoming revenue and deploys that revenue per the discretion of xGDAO holders. This includes a variable % split to liquidity add, dividends to xGDAO depositors, and coin to the treasury. The buyback agent is callable by anyone and features preset parameters for how big of buybacks should take place and at what frequency of time (initially, up to 0.5 ETH every 72 hours). The user who calls the function also receives a portion (currently 0.0003 ETH) of the proceeds as a gas reimbursement and a small payment for their efforts.
xGDAO Vault is the key component that gives GDAO holders immutable keys to the kingdom. Any holder can deposit to xGDAO, and in doing so, they will passively receive GDAO drip to their deposits from the Buyback Agent relative to their weight in the vault. Holding xGDAO also gives governance control over the smart contracts and DAO treasury (and ultimately, will replace the “admin keys” altogether). Users deposit GDAO to get a tokenized share in the vault, xGDAO, and that xGDAO can be redeemed for an increasing amount of GDAO per the consistent buybacks that add more GDAO to the vault for depositors.
Vault funnel strategy
The biggest distinction is that there is no “team” or “admin” that operates these functions. Token holders are the owners: this is fully autonomous revenue management.
The Governance Vault has been deployed alongside the Proof-of-Existence whitelist, which will take a sign-up fee priced in ETH in the future. ETH from POE signups goes to the Buyback Agent, which in turn delivers ETH to the specified destinations (a) liquidity add, (b) GDAO buyback and delivery to xGDAO participants, and (c) treasury draw. Other revenue including LGE (Liquid Generation Events) or NFT sales from the NFT Launchpad will be sent to the buyback contract.
For the GDAO holder, the interactions go like this:
- 1.GDAO holder deposits token in GDAO, receives a corresponding share of xGDAO (Input your GDAO, Receive xGDAO)
- 2.ETH from on-chain revenue buys GDAO. This GDAO is awarded to all xGDAO holders by increasing the GDAO value of every xGDAO.
- 1.xGDAO is representative of GDAO in the Governance vault. Every time there is a buyback, the GDAO value of xGDAO increases.
- 2.As such, participants holding xGDAO passively earn more GDAO over time.
- 3.xGDAO also Governs the associated contracts. xGDAO holders can vote to adjust the monetary policy by changing what % of revenue is sent to each destination through the Buyback Agent (in other words, xGDAO holders autonomously determine what % of revenue goes to liquidity, GDAO buybacks for xGDAO/ETH to the treasury, or GDAO buyback to treasury)
It’s important to recognize that xGDAO yield comes from open market buybacks driven by on-chain revenue. Without healthy enrollments and adoption of POE, buybacks/dividends will remain minimal.
In order for the Governance Vault and initial product rollouts to reach mass adoption, the GDAO community needs to engage with these contracts, test the products, refer their friends, and help spread adoption organically. In true DAO fashion, Governor DAO succeeds with everyone’s involvement!
The Governance Vault is designed to be a massively scaling, future-proof engine that permanently positions GDAO and GDAO holders at the center of everything in the Governor ecosystem.
The Governance Vault allows us to easily append every Governor product and buildout to the existing framework, with each instance generating revenue that buys back GDAO and delivers it to xGDAO holders through the Governance Vault.
GDAO's suite of products have the potential for massive network effects, becoming more profitable as their adoption grows.
Because of this “get the ball rolling” setup, the engagement of the core GDAO holders is the most important part in getting this entire behemoth situated for success. Governor was designed around the ethos that DAOs should encourage the engagement of every token holder, and the DAO should be situated in such a way where that engagement drives value to the DAO and awards incentives for that engagement. This is our way to guarantee growth within the Governor community. We have seen success with this model with the introduction of our GDAO Ambassadors Program.