DAOrayaki Research |GovenorDAO：Governance-as-a-Service (GaaS)

DAOrayaki

13 min readJun 7, 2021

DAOrayaki DAO Research Grant

Fund Address:

0xCd7da526f5C943126fa9E6f63b7774fA89E88d71

Voting Result：DAO Committee Yes

Grant Amount：170 USDC

Category: DAO, GovenorDAO, Govenor as a services（GaaS）, Liquidity Generation Event (LGE), synthetic LP (sLP), farms tax

Contributor：Jones @Daorayaki, 朱莉白@Daorayaki

Founded: The Governor DAO project has been found in 2020.

Chinese Version:https://daorayaki.org/daorayaki-research-the-apis-eng-chn/

Financing:

GDAO current price: $2.08USD.

Governor DAO current volume: $2,46MUSD.

Token name: The Governor DAO token launched out under the name GDAO.

Token type: GDAO token issued under the standard protocol ERC20.

I Introduction

Governor DAO is a blockchain project with core values that surround Governance as a Service and implementing DAOs within businesses or projects. This project came out after the failure of BREE, where all resources were purged after exploiting a backdoor in the Synthetic Bree (SBREE) token contract leading to the original sale funds to be vanished for good, this latter encouraged the dev team to come up with GovernorDAO as a moving forward step towards a community concept.

II Team members

·Zane huffman A.K.A “Green Jeff”: Chief Finance Officer & Solidity Engineer.

Zane has 8 years’ experience in cryptocurrency with a resume that spans numerous projects, news outlets, and agencies throughout the space. Outside of Governor DAO, Zane works as a core team member in a top DeFi protocol. His Governor DAO responsibilities include smart contract development, project planning, BizDev, and communications.

·Cody Dyer A.K.A “Dyer”: Head of Business Development & Chief Data Scientist.

Cody is a passionate DeFi connoisseur with over seven years of experience networking, trading & building within the blockchain ecosystem. His diverse knowledge of the space and dedication to the success of Governor DAO and the CBDAO Unrug Initative with his Data Aggregation Campaign, Biometric Authentication PoE Token concept and Team Building has proved an invaluable resource to the early stages of the projects development.

·Michael Side A.K.A “SideWinder”: Internal Communications Lead & Project Manager.

Michael is known in the community as SideWinder but in the real-world Michael Side, gifted with providing over 25 years of expertise and knowledge in many areas including software delivery pipelines, infrastructure support, project management and generally an all-rounder with many technical hats. SideWinder is a dedicated member of the team who maintains momentum overlooking current and new initiatives steering into a sustainable workflow which can be planned, prioritised and resourced in order for Governor DAO LLC to evolve organically.

·Britton Wolf “Britton”: Chief Political Stratigist.

Britton is the founder of Prime Investing and a youtuber. In addition to his work in the crypto-community, Britton is a Political Consultant with experience on over 34 campaigns at the local, state, and federal level. Britton is excited to take his passion for cryptocurrency and his extensive experience in the political process to promote Governor DAO and pro-crypto legislation. Governance-as-a-service is an untapped niche and he is looking forward to the future of this groundbreaking project.

·Jon Greenwood “JonG”: Head of Communications & Community Liaison.

Jon Greenwood — known as jgr33nwood in the community. His work within Governor includes communications with different partners and working with the team in an integrations role. He also serves as a business advisor for internal operations.

·Justin Sikes “BTCThiccc”: Lead Graphic Designer.

Justin is a talented graphic designer with years of experience bringing imagination to life. As a dedicated member of Governor DAO, Justin’s work and art has helped eyes across the globe understand the Governor DAO vision. He is known under Thiccc or BTClookingExtraThiccc in the community.

·Angel Ramos “Uplift”: Head of Digital Medias.

Angel has been involved in the Information Technology space for 17 years with experience in multiple roles ranging from hardware to graphics design, Angel also has experience with graphics design and video editing for content creation on the Youtube platform for 6 years as a hobby. With strong influence that form must dance well with function Angel has helped the team with UI/UX Design and various other graphics and media content creation.

·Soheil Saadati “Sohilo”: Frontend Engineer.

Soheil, known as Sohilo to the wider community, and established dedicated member of the team who has contributed to building Governor DAO from the ground up. Responsible for architecting then integrating the many frontend infrastructure solutions specialising in many areas of expertise including react, javascript, web3 and an all-rounder in web development. Sohilo plays a key role keeping the lights on at the hub of Governor DAO to ensure services are always available to the community.

III The Governor DAO governance mechanisms

Governance-as-a-Service (GaaS):

The aforementioned inherent complications within the infrastructure of DAOs positions Governor DAO as a pioneer in the unfilled niche of Governance-as-a-Service (GaaS). At the highest level, GaaS refers to the process of leveraging our own merits and technology to bootstrap third party projects. Immediately, this materializes in the form of consulting ‐ working with new projects to port some of our techniques (airdrops, LGE, taxed farms, etc.) so they can position themselves for success at launch. Additionally, this can evolve and take on the form of an even more comprehensive Unrug-as-aService package: working with communities that underwent similar exit scams as our own and 7 helping them to pick up the pieces following the same or similar steps in which Governor DAO has taken.

Ultimately, Governance-as-a-Service is a full-fledged governance bootstrap program: utilizing our own highly engaged community to guarantee fair and active participation into governance of third-party DAOs on launch day. This takes the form of an allocation to the Governor treasury and/or an airdrop to GDAO holders (perhaps filtered by addresses recognized as “active voters). Initially, the buildout of Governor DAO will prove the enthusiasm of our immediate community that may be desired by other projects.

Beyond that, governance tokens accumulated to the treasury by the GDAO farm taxes (YFI, UNI, SNX, and AAVE) serve as a proof-of-concept for the ability to govern other projects. These tokens were chosen as a test group to utilize for voting and proposal creation directly from the Governor treasury, as dictated by GDAO holders. Upon the successful utilization of these tokens as active participants in governance of their respective platforms, Governor DAO shall provide the same service for other platforms as part of the Governance-as-a-Service package.

Liquidity Generation Event (LGE):

Due to the needs of liquidity, for GDAO token, Governor DAO introduced Liquidity Generation Event designed to reward participants and ensure proper liquidity. Moreover, the LGE will be exclusive to addresses that held, staked, or LP’ed BREE at the time of the rug pull and carry a cap of 25 ETH per address, where the hardcap is 300 ETH (~$120,000). If the hard cap is not met, it may open up to the public at a slight markup. It will operate as follows:

Participants send ETH to the LGE address. Non-whitelisted payments are bounced and returned to senders.
If the hardcap has not been met, the whitelist will be nullified and anyone may participate. Thus, a slight markup is redistributed to whitelist participants.
When the hardcap is achieved, or at the conclusion of the event, 100% of ETH raised is posted as liquidity on Uniswap alongside GDAO at a price of 0.002 ETH (~$0.80). This translates to roughly $240,000 of initial liquidity.
Participants will receive a synthetic LP token that corresponds to the amount of GDAO-ETH LP tokens they are responsible for. They can trade or transfer this synthetic token as they choose.
Synthetic LP token holders will be able to burn their tokens into a swap contract to receive the corresponding number of GDAO-ETH LP tokens.

Governor Salesforce:

The first product of Governor DAO the “Proof-of-Existence registry”, will formalize this commission in code. Here’s how it works.

After our successful, internal Proof-of-Concept, we will introduce the production-ready Proof-of-Existence token and market it as the global whitelist of provably unique users.
Registration will be coded into a smart contract and sold along a bonding curve: early users get a cheaper rate and later users pay more. The intention is that an industry standard address whitelist will be utilized for the likes of airdrops and other earning opportunities. As such, the bigger the list and more widespread its adoption, the more value of being registered increases.
Whenever a user signs up and pays to authenticate, they will be prompted to input a referral address. If a referral is entered, the referrer will automatically receive their split of the profit.

Additionally, ownership of Governor NFTs will further boost that profit split. The boosts for NFT holders will similarly, automatically increase commission rates. If someone holds one of each NFT, they get a 1.5x boost on that referral payment.

Governor DAO also offers bulk sign ups that projects can purchase and forked Proof-of-Existence registries for projects that want their own, unique token. In these cases, as well as through other deals negotiated as part of our Governance-as-a-Service package, referrals similarly keep a percent commission.

Governance Vault:

Governor Sales Force establishes the ability to engage all community members for meaningful earnings, but what about the remaining earnings? Token holders do own the Governor treasury and revenue generated, but the ownership link needs to be formalized so token holders can use it as per their best discretion. Moreover, the GDAO Governance Vault enables this formal ownership of project funds as well as the ability for more nuanced approaches to revenue sharing, such as buyback of GDAO tokens for vault participants.

The Governance Vault operates similarly to other projects (such as Sushi and xSushi). participants deposit GDAO and receive an associated amount of xGDAO (ticker name pending). At launch, 1 GDAO = 1 xGDAO. Every time GDAO is bought back from accumulated revenue, it is sent to the Governance Vault and automatically distributed among all current xGDAO holders. This increases the underlying GDAO value of xGDAO, so depositors will always passively accumulate more GDAO so long as buybacks occur. xGDAO can only go up in terms of underlying GDAO value, never down, and users can redeem xGDAO for the underlying GDAO at any point. Additionally, token holders will vote to adjust the rates in terms of % of revenue designated for buyback, frequency of buybacks, and so on.

Contract Ownership Handoff:

Beyond revenue share, the Governance Vault enables two new functionalities.

Voting can now take place in xGDAO, indicating that users no longer will have to make a decision between parking their GDAO to earn yield or holding to maintain voting weight.
Assign admin roles and contract ownership to the Governance Vault itself.

With the time passing, Governor DAO team plan to provide more and more ownership control and administrative responsibilities to the Governance Vault contract. In doing so, they’re relinquishing these permissions back to the xGDAO holders themselves. Ultimately, there will be no administrative multisig wallets or otherwise: all will be wholly controlled by the Governance Vault.

IV The Governor DAO incentive mechanisms

GDAO Token:

Overview and Token Distribution:

The GDAO token grants voting rights in the DAO and ownership of the treasury. There are no limitations to how GDAO holders allocate treasury funds beyond the required consensus. Voting privileges extend through all matters of internal governance. Additionally, GDAO token holders may leverage their tokens as proxy voters on governance issues across any of the third-party governance tokens held by the Governor treasury, including AAVE, SNX, UNI, and YFI. GDAO is a fixed supply, burnable ERC20 token. The total supply of 3,000,000 GDAO was minted at contract deployment, and there is no mechanism to mint additional tokens. There is an internal burn function which may be called to permanently destroy tokens, making GDAO deflationary.

The GDAO token distribution is as follow:

41% Airdrop.
40% Farming pools.
14% DAO reserves.
5% Liquidity generation event.

Synthetic LP:

The sLP token is a fully liquid erc20 token that can be transferred to other addresses, pooled with ETH as liquidity on Uniswap, sold over-the-counter through Deversifi or otherwise, and so on.

Liquidity Generation Event (LGE):

300 ETH was raised and posted as liquidity alongside 150,000 GDAO tokens (500 GDAO:1 ETH). Participants received a synthetic LP (sLP) token that reflects 1:1 ownership of genuine Uniswap GDAO-ETH LP tokens. When the farms go live, sLP holders will be able to send their sLP to a swap contract to receive the real LP tokens 1:1. The LGE was enacted in such a way as to reward participants (didn’t swap ETH for GDAO) and lock sufficient initial liquidity until liquidity providers are further incentivized by the farms. The event commenced on November 16th, 2020 and filled out in roughly thirty minutes.

Incentivized Participation:

Perhaps the greatest dilemma DAOs face — almost unilaterally — is a higher barrier to entry for participation. Governor’s approach to community governance emphasizes incentivized participation that is accessible to all — ensuring ease of access for all participants. Of course, there is different levels of participation in Governor: the developer team building out various components of the project, passionate community members drafting proposals and participating in competitions, auxiliary support, in way of marketing, business development, and so on. Additionally, casual community members are equally emphasized through an engagement program for incentivized microtasks. Long-term this will come as an individual Governor App or dApp for participants devices to collect micro-data and provide participants with direct Ease of Access to all Governor interfaces, products, and services. Immediately, this looks like a buildout on Wix, a lightweight social application. Participation in these tasks yields points, which contributes to a level/tier system. Ultimately, these points earned, and levels achieved translate to prizes: GDAO tokens, NFTs, platform privileges, and so on.

Wix is a powerful tool for building out an engaged community with tasks as simple as tweeting about the project, inviting friends, participating in the forums, and so on. Beyond that, assignments and quests can be leveraged for data collection: short surveys reflecting market sentiment, background in crypto, trading tendencies, and so on. All data collection is opt-in and 100% voluntary. The data collected from community members will be compiled into data packages/reports that can be sold via Ocean’s Data Marketplace (and can be additionally leveraged in other capacities). Ocean has not yet built out a robust library of data sets, which puts Governor DAO in a uniquely desirable position to play an authoritative role in the marketplace. Similar data packages to the Governor DAO project’s capabilities are currently priced on Ocean in the range of thousands of dollars per purchase. Ultimately, this is the power of leveraging the contributions of the entire community: through data collection or otherwise, achieving significant revenue generation through the help of everyone involved which would open up the potential roles of authoritative data aggregators and trusted Data pools. Whereas the integrity of mass data hosts, as of now, is predominately contentious at best. Leveraging an incentivized ecosystem enables long-term growth and maturity for a project, meanwhile providing an avenue through which members may engage in collaborative and meaningful ways is beneficial to the entire community.

Governor NFT:

On March 31, 2021 Governor DAO had dropped its governor NFTs where these NFTs signify membership to the exclusive group of original Governor DAO supporters. With this membership comes exclusive perks and privileges that translate to long-term value as the project continues to grow and scale.

Each NFT adds a “boost” to an individual’s earnings in the Governor ecosystem:

Staffer: +5%

Representative: +10%

Council: +15%

Governor: +20%

These rewards stack (ie: holding Counil and Representative translates to +25% boost) but multiple editions of the same NFT does not multiply rewards.

Swap or Buy:

The catch-22, of course, is whether to buy NFTs or swap LOYAL back for GDAO. Important to note that, given the sum of unclaimed airdrops, there will be a total of ~78,000 GDAO swappable for LOYAL. Moreover, the ratio of GDAO/LOYAL will be established after the NFT sales take place. If more people purchase the NFTs, there is less LOYAL remaining and therefore a higher rate of GDAO per LOYAL. In other words, higher volume of NFT purchases means LOYAL is worth more GDAO and therefore a higher cost to these NFTs. With less sales, LOYAL is worth less and purchases are cheaper. It will be interesting to see how participants react and establish the equilibrium rate between the NFT swap and GDAO redemption.

V Contracts

Airdrop

Contains the GDAO tokens pending a claim by the eligible claimant.

https://etherscan.io/address/0x7ea0f8bb2f01c197985c285e193dd5b8a69836c0#code

Burn Adress

Stores the GDAO tokens that are burned on a bi-weekly basis.

https://etherscan.io/address/0x925b1f1bd3c28ea9f03fc00b8e069ef738ff740d#code

GDAO ERC-20

The official token Governor DAO, which represents your voting power and stake in the Treasury

https://etherscan.io/address/0x515d7E9D75E2b76DB60F8a051Cd890eBa23286Bc#code

Governator

Enables you to swap any ERC-20 for its UNI-V2 pair with ETH. Sends 2% of each transaction to the Governor Treasury as a tax.

https://etherscan.io/address/0x09e16ad071f4f80c02856275116cc772ba74b62c#code

Liquidity Mine

Official Liquidity Mine for Governor DAO, Slow drip, fair distribution of 1.2M GDAO governance tokens.

https://etherscan.io/address/0x4dac3e07316d2a31baabb252d89663dee8f76f09#code

Loyalty Mine

Single asset staking (SAS) DApp designed to enable users to deposit GDAO to be rewarded LOYAL tokens.

https://etherscan.io/address/0xda58927f4065f1d02a6ea850c2aac49d7362a643#code

Loyalty Token

Non-transferrable ERC20 designed as a reward for staking GDAO in the Loyalty Mine. May be used in exchange for privledged NFTs or a share of unclaimed GDAO from the airdrop.

https://etherscan.io/address/0xeda4f23957d2f819c22761c4d6d6157bd3fe0724#code

Swap

Swap one predetermined token for another (1:1), used for GDAO sLP to LP conversion.

https://etherscan.io/address/0xcc23ef76b46ed576caa5a1481f4400d2543f8006#code

SynLPToken (sLP)

The synthetic LP token representing the actual GDAO-ETH LP token it has claim to through the Swapico contract.

https://etherscan.io/address/0xcced3780fba37761646962b2997d40b94de33954#code

Treasury

Treasury contract, which is a multsignatory smart contract containing our Treasury, which belongs to the Governor DAO community.

https://etherscan.io/address/0x5ab8e3a7bc8be9efdd0943ab65221bdf240518c3#code

UNI-V2 GDAO-ETH LP

The Uniswap LP token that represents the GDAO and ETHLiquidity providers receive their proportionate share of the trading fees generated form trades in the pool. This token receives a 4x boost on GDAO yield when staked in the mine.

https://etherscan.io/token/0x4d184bf6f805ee839517164d301f0c4e5d25c374?a=