DAOrayaki Research | ElasticDAO：A Protocol Focus on Fairness Between Community

DAOrayaki

5 min readJun 10, 2021

DAOrayaki Research | DAO Project — — ElasticDAO

DAOrayaki DAO Research Grant：

Fund Address: 0xCd7da526f5C943126fa9E6f63b7774fA89E88d71

Voting Result：DAO Committee Yes

Grant Amount：170 USDC

Category：DAO, DeFi, Governance, Maximum voting power, EGT

Contributor：Jones, 朱莉白@DAOrayaki

Keywords: DAO, DeFi, Governance, Maximum voting power, EGT

Chinese Version:https://daorayaki.org/daorayaki-research-basketdao-eng-chn-daorayaki-2/

Financing:

ElasticDAO current price: $185.94 USD

ElasticDAO current volume: $7.72M USD

Launch date (mainnet): 17 March 2021

Token name: Elastic Governance Token (EGT)

Token type: EGT is issued under the standard protocol ERC20.

Introduction:

ElasticDAO a protocol that focus on fairness between community members founded by a team of DeFi natives with a great experience in different major projects, like PieDAO, MetaGame. The protocol main goal consists in providing balance for the competing interests of different stakeholders cited in different organizations. Both dev teams and the community can possibly build and govern organizations next to each other, there is no need to turning DeFi to a warzone, while fairness can be accomplished. The creators of such a DAO believe in collectivity and collaboration between members, where it eventually leads to an attainable ecosystem. The protocol motivates participants to enhance the community in efficient way by taking positive actions toward the organization, and rewards the active participants for their contributions, while penalizing bad actors for not being active around the community.

ElasticDAO considered the first deployed DAO governed by the Elastic Governance Token (EGT), these tokens fuse positive rebasing with a bonding curve to make sure that the members of such a DAO are the initial and essential beneficiaries. The EGT high demands leads to a value increase, while positive rebasing provides more token receiving for the participants. EGT token can be redeemed anytime with no additional costs or negative rebasing. In addition to that, anyone who contributes to the DAO’s objectives is rewarded by the minting of new EGT. This lowers the backing value of each EGT, making EGT more affordable for new members to join ElasticDAO, and promoting more decentralization.

Team members:

The ElasticDAO working area is widely opened and contains several contributors of DeFi natives below we list them along their Discord accounts:

CORE founders:

The core team has extensive experience in major decentralized projects, such as PieDAO, MetaGame, Sushiswap, NFTX, Alchemix, and ESD.

Dan Matthews known under LsDan: ElasticDAO#5166

Chrissu: ElasticDAO#8755

Byzg: byzg#5254

SSDD: ElasticDAO#0001

STAFF members:

AlleyCat: AlleyCat#4282

Ash: ElasticDAO#3691

Nick: ElasticDAO#0007

ElasticDAO governance and incentive mechanisms:

ElasticDAO’s governance approach consists in limiting the wallet’s maximum influence. All participants are seen the same, where opportunities and privileges are accessible and provided for everyone “All for one, one for all”. whether it is a position, time of entry, or even a holding value it doesn’t matter and that is what is known as the “Fair Governance”.

As all DAOs, ElasticDAO released fully decentralized and community-owned with Snapshot as its first voting module, leading to consensus reach with the lowest gas fees possible and the total organization control by its token holders. This indicates that the majority of token holders are the ones to decide whether an update concerns the protocol can be passed or not.

Down below are the required ways to achieve a fair governance:

Governance power limitation;
Voting encouragement by offering rewarding/penalizing model.

Voting approach:

ElasticDAO is mainly controlled by EGT token holders who play the essential role in submitting and voting on proposals to govern the ecosystem. An off-chain voting solution is used to achieve the voting via a module integrated with snapshot. The votes are then certified by a 9-member multisig.

Maximum voting power:

Limit the voted-tokens by setting a maximal value set by the DAO at launch, where this maximal value is increasable by EGT rebasing, adjustable by ElasticDAO members through a voting process.

Whitelist:

Offering privileges to participants to meet their new requirements and that is by allowing them to create new proposals via the snapshot module, if they meet the required criteria concerning the voting power threshold.

Quorum:

A proposal that holds at least 60% of token holders votes is considered passed as long as it has reached the quorum, with a 50% passing-threshold for eligible EGT voting requirement.

Rewards:

Voting means rewarding, according to the creators no matter what the individuals vote, and whether the voted proposals are going to reach quorum or not, they will always get rewarded. As long as following the possible ways for EGT voting which are: proposal approving, proposal abstaining, or proposal denying. The number of voted-EGT decides the participants reward, where the reward variable is currently 5%, from the other hand the merge of the maximum voting power and rewards dramatically helps to increase the relative voting power of smaller EGT holders.

Penalty:

If a proposal fails to meet quorum, the proposer may require that multisig signers penalize the inactive participants in the previous vote, as long as the previous vote was active for at least 24 hours. At the moment, the penalty threshold is 10%. In this way all individuals will pay attention for proposals providing and suggesting in a fair way and free riders will be removed for their impact on a quorum.

Multisig:

To handle the community and provide a full active-monitorized platform, the creators hand the following responsibilities for the multisig holders: weekly distributed rewards, smart contract calls executions via passing proposals, free riders penalization, guarantee an operational multisig with new EGT refurbishment

Contracts:

Main contracts are provided in the table below: