Governor DAO Proof of Existence Use Cases

GDAO's Proof of Existence solution adresses key issues for fighting against Sybil attacks. Common use cases include:

Use Case 1: Non Verified Wallet Whitelist

Problem Explanation / Challenge

When projects or artists plan a presale for either a token or NFT launch there may be an offer of a whitelist. The whitelist wallet discovery would typically be in the format of a Google form which would potentially gather information including Telegram, Discord and an email address, all attributes which are not verified. Due to the anonymous unverified nature of the data the confidence of a fair launch is lost. A ‘fair launch’ would be flattening the landscape to ensure each person has the same opportunity as the next to acquire the token or asset through the sales platform. Traditionally a person connects their wallet to the dApp and executes a purchase without using a bot, script, or any other method to frontrun a launch. The other key element also is confidence only one wallet per person can be verified to fight for sybil resistance. One of the biggest challenges in blockchain is the misuse of multiple wallets per person to gain an unfair advantage over the volume of assets which may be available in a launch. A person owning 10-20 wallets which could be used to participate in a whitelist sale to acquire a larger stake in the circulating supply wouldn’t be uncommon. If an NFT sale reserved 500 NFT’s for presale at a discount price, one person could consume the majority through a bot or script which would leave very few for genuine whitelisters who were looking to purchase one or two.

Mitigation Strategy

Enroll on the Proof of Existence Portal to gain a PoE token. Developers can add a check into their dApp to check for the ERC-20 PoE token for any whitelisting.

Use Case 2: Effective Anon Ban System

Problem Explanation / Challenge

As with any whitelist strategy, the flip side is the introduction of a blacklist strategy. Bad actors across blockchain are out of control and constantly on the increase contributing to a number of negative experiences. Defending against these attacks is a challenge but blacklisting a known bad actor's wallet is made simple with PoE tech.

Mitigation Strategy

Blacklisted wallet addresses can be added to the PoE Contract. Developers and projects can configure their dApp to check for PoE ERC-20 token and blacklisted wallets from the same PoE Contract.

Use Case 3: Provably Fair Token Launches/NFT Mints

Problem Explanation / Challenge

A ‘Provably fair launch’ would be flattening the landscape to ensure each person has the same opportunity as the next to acquire the token or asset through the sales platform. Traditionally a person connects their wallet to the dApp in preparation for an upcoming launch and executes a purchase without using a bot, script, or any other method to frontrun a launch. One of the biggest challenges in blockchain is the misuse of multiple wallets per person & bots to gain an unfair advantage over the volume of assets which may be available in an NFT or token launch. If an NFT sale reserved 500 NFT’s for presale at a discount price, one person could consume the majority through a bot or script which would leave very few for participants who were looking to purchase a small number of tokens or a couple of NFT’s. These sybil attacks result in a very high negative user experience with confidence tainted with the project due to the misadventure.

Mitigation Strategy

GDAO can provide Governance as a Service (GaaS) to launch an upcoming NFT or Token launch. The Proof of Existence Launch Pad is operational and has a number of customizable paramters based on the needs of the NFT artist, including integration of the PoE whitelist. A liquidity generation event (LGE) can also be hosted by GDAO to provide an array of launch options based on ownership of a PoE token for pre-sales and public sales.

Problem Explanation / Challenge

When a project coordinates an airdrop, the aim would be a fair distribution of tokens to one wallet per person. Unfortunately airdrops typically result in tokens being sent to or claimed by multiple wallets per user. A user claiming across multiple wallets creates an unfair distribution, diluting unique participants' allocations and sometimes excluding them from participating at all. For instance, there may be an airdrop of 100,000 - 1,000 per wallet with one person owning 20 wallets and consuming 20% of the total airdrop. An additional challenge would be calculating a practical sized airdrop based on enrolled wallets. In order to have a level of confidence that all participants received a fair distribution the calculation would typically be based on the number of wallets. Obviously, this method would not provide a confident distribution per person without a large percentage being sent to multiple wallets owned by one person.

Mitigation Strategy

Allocating airdrops only to wallets holding a Proof of Existence (PoE) ERC-20 token will provide a provably fair allocation of airdropped tokens to one wallet per person.

Problem Explanation / Challenge

Traditional project governance is carried out via a weighted voting strategy therefore, any large token holders with one or more wallets would dominate the majority of votes they choose to take part in. This type of dominance results in whales and holders of multiple wallets directing the project in their biased direction based on their weighted token holdings. For example, this could lead to outside influences buying a large amount of token supply to push nefarious proposals in their favor. Small token holders would have very little impact on any project direction based on a voting system of this nature, which can decentivize those holders from participating in governance completely.

Mitigation Strategy

Incorporating the PoE ERC-20 token into snapshot.org enables a unique “One Voice, One Vote” governance strategy. This strategy can also be leveraged with additional criteria such as, having x amount of the project token as well as a PoE token.

Problem Explanation / Challenge

In a high percentage of NFT & token sales bots secure the majority within a few minutes of the launch. When bots attempt to interfere with a launch, it not only pushes up gas fees but leaves genuine buyers with a limited supply and the risk of being frontrun.

Mitigation Strategy

Utilizing the Proof of Existence solution by allowing only PoE holders to participate in a launch or sale will tackle any unwanted bots from attempting to purchase any of the assets

Problem Explanation / Challenge

As the defi space builds out, social media has become an area in need of decentralized integrations. Social media dApps like ‘Blockscan’ and 'ETHmail' are both functional social media tools that can be used in combination with your wallet to send emails on-chain. Anyone can spin up multiple email addresses off-chain without any KYC verification, meaning there is little trust in who the actual author is and wether or not they are a bot or a human. As these social media integrations build out, there will be a bigger demand to verify who is associated with each wallet and its social media activity.

Mitigation Strategy

This can be solved by integrating PoE token verification into social media platforms. Additionally, as web3 and decentralized platforms are built out, GDAO’s Passport Portal can be used to verify a wallet’s connected social media profiles. These options provide platforms with the tools needed to mitigate bot activity and scams, ensuring a safer environment for their community.

Problem Explanation / Challenge

As blockchain integrations build out so does its reach and scale across platforms. Over time building up an on-chain reputation will play a key part in a user's profile across the blockchain. For instance, a user can build up a financial defi score based on thier financial decision, loans, debt etc. including building financial defi scoring based on financial decisions and loans etc. Without verification of one user to one wallet, there is no way to assure the integrity of a users reputation or legitimacy of their defi score.

Mitigation Strategy

GDAO’s Proof of Existence (PoE) token allows for verification of one user to one wallet. This ensures that on-chain reputation systems are accurately maintained and unable to be gamed. For example, a user owning a Proof of Existence (PoE) token builds out their on-chain reputation within the growing GDAO ecosystem.

Problem Explanation / Challenge

Gas wars are typically the outcome of a mass flood of front-running bots attempting to take the lead on purchasing NFTs or tokens by elevating the gas price higher than practical for most people taking part in the sale. The high gas configuration, combined with the many bots pushing the gas demands up, results in innocent participants paying excessive gas for a low-cost NFT mint or a small token sale allocation.

Mitigation Strategy

Gas wars minimized by utilizing the PoE integrations into planned launches or sales.

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Last updated 2 years ago