4. DAism Protocols
DAism's framework relies on basic protocols which are the basic building blocks of the whole ecosystem. Some will be Ethereum's standards such as EIP-2569 submitted two years ago, in which we proposed a means to save images directly on Ethereum, and recently submitted EIP-3712 in which we proposed a multi fungible token standard.
Here are the main protocols DAism's framework has:
- DAO's Hardcore Protocol (Decentralized Autonomous Organism Hardcore Protocol)
- Decentralized Authentication Procotol
- Protocol of Decentralized Autonomous Fundation
- Circulation Token Protocol (Protocol of Token's Circulating Supply)
- Unit Token Protocol
- Reputation Token Protocol(Optional)
- DEX Protocol
- Decentralized Payment Protocol
- DAO's Hardcore Protocol defines the basic information for a DAO such as the Organism's ID, name in English, logo image(in SVG format, recommended file size less than 6k), description(it can be a slogan), date of establishment, team members(in ETH address, anonymous), address of smart contract that manages decentralized autonomous fund and etc.
- It provides decentralized authentication services for products and services for all DAOs registered with it.
- The DAO's Hardcore Protocol is scalable.
Does a DAO have entry permission?
In our belief every DAO should have no entry permission at all. Everything about it is open and permissionlessly accessible. Its management and decision-making processes are based on transparent rules and intelligent algorithms.
To sum up, with regard to entry permission DAism's framework should be:
- fully open and permissionless, or
- if a DAO intends to evaluate a potential member's qualification it needs to utilize third party developed "doorkeeper" modules to do it
With regard to the details, here are the key factors:
- 1.Without an initial consensus, no one has initiatives or rights, therefore no DAOs can be constructed. Our strategy by default is to set a DAO's creator as its founder or authorizer. A creator defines a DAO's basic details (such as modules, configurations, issuance details of its circulation token and etc). Note: when created, all available modules not just core modules will be listed and members can permissionlessly select any modules to create a DAO.
- 2.To create a DAO on DAism one needs to set its project's name, issue ERC-20 tokens, set up reputation tokens, authenticate honor tokens, deploy decentralized exchanges and DPayment systems etc.
- 3.When setting up a DAO, its creator(s) can input some addresses as cofounders. (The number of ETH accounts should be no more than 100 for now.) Each of these accounts could be given an honor token titled "Cofounder". These honor tokens can be designed and issued by a third party or by default by the system itself.
- 4.The implementation details of decision-making processes based on decentralized consensus are handled in the layer of applications.
- 5.By default a DAO's rules and settings should be completely transparent.
- 6.After a DAO is successfully created it will automatically receive a decentralized authenticated token. You can refer to Decentralized Authentication and Management of DHonor for more details about the design and implementation of such a token.
- 7.Every DAO should be public, it is not private to anyone, any organization or enterprise registered off-chain.
DAism provides decentralized authentication services for individuals, DAOs and Dapps. The decentralized authentication process for a DAO is pretty straightforward. When a DAO is created on DAism, it will have a unique name and will be allocated with a contract address for its decentralized autonomous fund(DAF). This contract address is globally unique. Its name and this contract address for its DAF together will be this DAO's authentication tag which ensures this DAO's authenticity. The format of this authentication tag is :
i.e. Authentication Symbol + DAO's Name + DAF's Contract Address
All the tokens (including both fungible tokens and non-fungible tokens) issued or services provided by a DAO will have such an authentication tag.
The decentralized authentication of a DAO is a proof of the DAO's current state and can prove the authenticity of the states and information of the DAO, its issued tokens and products (such as DApps).
The decentralized authentication of a DApp proves the authenticity of the DApp's information and furthermore provides interfaces for DAism to call its services. After a DApp is authenticated by DAism (i.e. with successful registration), any DAO registered with DAism can search for and call the DApp's interfaces and services via DAism Bazaar.
You can refer to DAism Decentralized Authentication and Management for more details about the design, implementation and application of decentralized authentication.
Every DAO needs a Sustainable Decentralized Autonomous Fund (abbreviated as "SDAF"). DAism provides functions and services for such an SDAF.
- DAism's specific smart contract provides each DAO with an independent decentralized autonomous foundation it needs, which has a unique contract account.
- The funds of each DAO, including financing, fees, etc., must be managed through this decentralized autonomous foundation. For example, the token earned by any DAO product or service goes directly to the DAF's account, rather than to any personal account or other contract account (so for a good DAO, its DAF is sustainable).
- This protocol interacts with Protocol of Decentralized Exchange and Payment, and Unit Token Protocol: if a DAO has issued its circulation token and sells its products or services (the unit is vita), when customers buy the DAO's products or services they can pay whatever tokens but its DAF adheres to the protocol to ensure that it receives its own tokens. If a DAO doesn't issue its circulation token, it can only receives uToken while selling its products or services.
- The transaction fees set by the circulation token protocol and the interaction between the circulation token protocol and IADD's payment protocol are also rules of this protocol.
- Besides fund management, this procotol provides three basic utilities: a database of vote weights, a voting machine and a vote inspector. Users can extend the functions and features of these three utilities by using their own tools or third-parties' templates or dApps
- A whitelist, a blacklist or both are optional to ensure SDAF's safety and security.
Any DAO can issue its circulation token (i.e. ERC-20 token). This token is facilitated to grow its economic ecosystem and pave the way for the DAO's long term development.
This procotol defines a token's name, symbol, logo, supply, price and issurance mechanism.
The circulation token procotol is one of the key protocols of the IADD network. Every DAO that issues a circulation token should follow the rules below:
- All the supply should be sent to the IADD network. The DAO that issues its token has no reserves. This is a specially designed rule that prevents the DAO from colluding with "whales" to manipulate the market.
- A circulation token's total supply is 10,000,000,000 and the initial price is 0.01 vita
- For every transaction of a circulation token, a transaction fee (0.195%) is charged
- This procotol interacts with IADD's payment protocol. For instance, a DAO has issued its circulation token and sells its products or services in the circulation token (the unit is vita). Customers who buy the DAO's products or services can pay whatever tokens but the paid tokens will be converted by the IADD network to the circulation token and sent to the DAO's DAF address. If a DAO doesn't issue its circulation token, it can only sell its products or services in uToken.
The unit token(Abbreviated as uToken) is a native crypto generated by a constant product formula employed in the IADD network(a network consisting of a DEX and a DPayment system). It is used to denominate the price of every token or crypto asset such as ETH, ERC-20 tokens etc in the ecosystem.
- 1.The Unit Token, uToken, is the monetary unit token facilitated in DAism, while a base unit "vita" has been defined. Then an uToken is always 1 vita in the calculation of any other tokens in the markets of DAism. Like the existing units listed on International System of Units, such as mass, length etc, DAism has a monetary unit system and vita is the base unit.
- 2.In DAism every token is traded based on a constant product formula and is priced with a base unit "vita".
- 3.uToken's issurance mechnism is unique and more details will be published later.
- 4.Vita is the base unit. Any token or crypto asset such as ETH, ERC-20 tokens etc in circulation in DAism is priced with the base unit "vita". Any payment for products or services in DAism's is priced with vita. For instance: 1 ISM = 0.01 vitaThe price of a product: 0.5 vita/kgThe price for a service: 200 vita/hr
The Unit Token is specifically created for DAism. It will minimize applications' complexity and frictions. It is what a real decentralized market needs.
This is an optional protocol. This protocol is one of the most important components of a DAO's decision-making mechanism and one of the most important protocols of a reputation system (others include circulation tokens and tokens of honor). It is also a quantitative metric that works with tokens of honor to evaluate the contribution of a member to a DAO.
Tokens of honor are used as
- PoW: member's proof of work, and
- PoS: member's proof of staking. For instance, if Alice's reputation value is twice as much as Bob's, one Alice's vote will weigh twice as much as that of one Bob's vote.
Adoption of reputation in DAOs will lead to integration of blockchain's consensus in DAOs.
For any member of a DAO his/her reputation is his/her proof of work. Therefore in a DAO a member's reputation is an incentive to the member's contribution just like mining to a miner in Bitcoin. For instance, two members A and B both belong to a DAO. If member A's contribution is twice as much as that of member B's, member A's reputation value will be twice as much as that of member B's. A member's reputation value is also the member's stake in a DAO, which means for instance, if member A's reputation value is twice as much as that of member B's, member A's voting weight will be twice as much as that of member B's.
Reputation is likely applied this way: any member with a certain reputation value can submit a proposal for any issue such as applying for financial support for a task. If this proposal is passed by qualified members, an amount of fund in the decentralized autonomous fund (abbreviated as "DAF") will be reserved for that member . However in this stage the fund is only reserved for the member. Only after the member accomplishes the task and the final result passes a audit, will the fund be sent to the member. Essentially, a DAO's fund is completely managed by collective decison-making processes rather than by a group of privileged people(most likely founders or co-founders of that DAO).
Here is how fund is granted from DAF:
Submit a proposal -> Evaluate the proposal -> Reserve fund (if the proposal passed) -> Accomplish a task -> Evaluate the result -> Send fund (if the result passes an audit)
Features of token of honor:
1 it is a non-transferrable fungible token. This prevents collusion among multiple members.
2 Each DAO has its own reputation.
3 A DAO's decentralized foundation (DF) makes rules and decisions. And these rules and decisions are coded in smart contracts and executed by smart contracts when predefined conditions are triggered. For instance, smart contracts can increase or decrease the reputation value owned by an ETH address or can blacklist an ETH address. Another instance might be that when a DAO pays its circulation tokens to an address, that address will be rewarded with a certain amount of tokens of honor as well.
4 A DAO's decentralized foundation (DF) can inherit the reputation value and rules of anther DAO's DF. For instance, if an ETH address is a member of multiple DAOs, when this address votes for a proposal in a DAO, its reputation value will be accounted as the sum of all the reputation values that it holds in all the multiple DAOs in which it is a member.
5 An ETH address can reject an increase offered to its reputation value or freeze its reputation value. The former may mean that this address is willing to offer the increase in reputation value to the reputation value of another ETH address temporarily. The latter may mean this address gives up its voting power.
- For every transaction of a circulation token, a transaction fee (0.2%) is charged, while 0.195% is charged by its DAO and 0.001% is charged by DAism.
- After a circulating token(for example, ABC) of a DAO issued , when this DAO sells products or services (the price unit must be vita), the other tokens paid by the customer will be transferred to the token(ABC) issued by the DAO through the IADD network , And then paid to the DAO's decentralized autonomous foundation.
- If there's no token issued for a DAO, it will charge uToken directly .
Our proposed standard for saving images onchain has great significance
- This standard paves the way for exploring more possibilities of saving images onchain.
Crediting a member with honor and Rewarding a member based on his/her credited honor is an important means to incentivize the development of a DAO. This protocol is not a core protocol of DAism but a protocol that is better adopted by dApps in DAism.
Tokens of honor can be applied in a variety of applications including:
- Issurance of medals of honor, commemorative tokens, crypto medals, crypto certificates etc.
- The cryptos based on the token of honor protocol are valuable as collectibles ---- their elements such as smart contracts, metadata, images, etc are 100 percent persistently and permenantly saved onchain.
Purposes to propose this protocol:
- to define a standard for issurance of a token of honor
- to define interfaces and attributes of a token of honor
Here are some DEMOs of trading exchanges of tokens of honor we made:
A DAO can be scaled and extended by creating various applications (i.e. wrapping and creating new functions and extentions, which we call "DApps") and independent Dapps.
- Interfaces and modules provided or developed by third-party DApps
- Protocols developed by third-party DApps
- EIP-2569: an onchain standard for saving token images on Ethereum.
For the sake of third parties' development of modules and DApps, we will provide UI standards in the future. For sure third-party developed standards are welcome as well.