DAOrayaki Research | SubDAO：Polkadot’s DAO Infrastructure

DAOrayaki

5 min readJun 11, 2021

DAOrayaki DAO Research Grant：

Fund Address: 0xCd7da526f5C943126fa9E6f63b7774fA89E88d71

Voting Result：DAO Committee Yes

Grant Amount：170 USDC

Category: Polkadot, DApps, Substrate framework, Web3.0, APY subsidies.

Contributor：Jones, Julie @Daorayaki

Token name: GOV token which stands for governance.

Chinese Version:https://daorayaki.org/daorayaki-research-basketdao-eng-chn-daorayakidaorayakiread-more-posts-by-this-author/

Introduction:

SubDAO Network is a Polkadot-based DAO management platform developed using the Substrate framework, that comes with different functionalities such as: DAOs creation tools, funding pool management, voting to personalization and that is to assist DAO creators and participants. Such a network provides the ability to build and manage DAOs in a more flexible and accessible way. Below we list the different goals of SubDAO Network:

Cross-chain platform providing.
Provide various management functionalities for DAO governance.
Guarantee a reliable connection with DApps.
Allow the accessibility off the off-chain external data.

Team members:

The SubDAO’s members come from various fields that cover development, management, and cryptocurrency. We listed them as follows.

Wang Qiang:

Technical Contributor.
Chief Solution Architect in Tencent.
Former Team Lead in IBM.
Core Developer of Smart Coult / HSLT.
Code Contributor of KVM.
Community Contributor in RedHat.

Humphrey:

Community Contributor.
Graduated from Peking University.
Co-founder of PAKA Fund.
Investor in many early projects of Polkadot.

Marvin Tong:

Technical Contributor.
Founder and CEO of Phala Network.
Former Product Manager in Tencent.

Owen:

Community Contributor.
Stafi Co-founder.

Da Jun:

Technical Contributor.
Former Senior Software Engineer in Alibaba.
Core Developer of Wetez and StaFI.io.
Over 12 years of experience in Development.

Sand:

Community Contributor.
Founder of Pola Warriors.
Founder of Dotmarketcap.

SubDAO governance mechanism:

Governance mechanism is considered one of the essential parts since that the value of a DAO relies on many governance aspects such as: fund size, member count, and the frequency of the governance activities, the bigger they are the more valuable and successful a DAO is. For this reason, SubDAO adopt the following DeFi design known as the “Genesis Farming” into consideration:

The SubDAO platform provides APY subsidies to pools in its native token GOV.
The subsidy is based on LP token generated from pools. Meanwhile, LP token and native token can be combined to farm in the GOV pool with a high APY, therefore providing multiple reward sources.
High APY will continuously attracts DAO organizations and that is to handle the cold start of the project and to establish a user base.

A total of 7% of the tokens will be distributed to 5 different Genesis Farming pools, where a whitelist application mechanism is adopted to grant a farming GOV rewards to the DAOs that successfully passed the application. Below we list the 5 types of DAO farming pools:

Foundation-based DAO.
Community-based DAO.
DeFi-based DAO.
Art (NFT)-based DAO.
Developer-based DAO.

The whitelisted DAOs will need to inject their assets under management into the pool as the first procedure of farming, where each member of these DAOs will achieve a DAO Share according to the investment that he made. Also, this kind of Share can be inflated by adopting governance voting. Moreover, SubDAO will automatically issue rewards on a daily basis based on each DAO’s Share holdings. Meanwhile, Genesis Farming rewards are issued within 6 months, with the distribution volume declining each month. While the GOV rewards are considered to be completely dependent on the DAO’s fund size. In addition, SubDAO will create supplemental pools for the staking of one Share token (each of the 5 pools) and GOV and that is to get high APY rewards,.

SubDAO incentive mechanism:

SubDAO Token:

GOV, is the native token of the SubDAO network, where the total supply of GOV is 1 billion, with an annual inflation rate of 5%. ThenSubDAO tokenomics model is divided into three major objectives:

Slot Auction: Mainly for SubDAO Network securing.
Incentive the development of DAO.
Governance: The governacne of SubDAO network.

GOV Token Distribution:

The Gov Token of SubDAO is distributed as follows.

SubDAO Para-chain:

The main reason behind adopting Para-chain is to let validators validates blocks for the SubDAO para-chain, which leads the SubDAO team to be completely focused on building the SubDAO ecosystem rather than getting distracted by the solo chain node incentive and maintenance. From another hand, SubDAO intends to set aside 30% of the tokens for a slot auction that will last more than 5 years. Furthermore, 60% of the 5% annual SubDAO inflation will be added to the para-chain auction reserves to finance the long-term slot auction.

The auction of subDAO’s para-chain will adopt a“Lockdrop”method with the essential two procedures:

Stake KSM to get GOV token airdrop.
DOT holders can participate in the Initial Parachain Offering (IPO) and receive airdrop.

Airdrop:

SubDAO considers airdropping 3% of the tokens to the participants of Polkadot and Kusama governance, where their participation includes: posting proposals, democratic voting, election voting, creating tips.

SubDAO Ecosystem:

As an ecosystem SubDAO Network has various essential roles such as: para-chain contributors, farmers, and the SubDAO Council. Each of these roles has an impact task on the network, where the para-chain contributors’ main task is to stake KSM and DOT to support SubDAO to become a para-chain, as a reward they will receive SubDAO token. Farmers from the other hand, includes anyone that uses SubDAO for DAO governance without forgetting the whitelisted DAO participants who can obtain DAO Share through governance activities leading to GOV farming. Lastly, SubDAO Council is defined as an autonomous organization that is composed of members of the SubDAO community along with community contributors, developers, etc. Where the SubDAO Council election is held every year with GOV holders as voters.