DAO

On the testnet, we are also able to create an anonymous DAO. Using the drk CLI tool, we have a dao subcommand that can perform the necessary operations.

Let's create a DAO with the following parameters:

Proposer limit: 20
Quorum: 10
Approval ratio: 0.67
Governance token: MLDY

You can see what these parameters mean with the help command.

$ ./drk help dao create

Let's create our DAO.

$ ./drk dao create 20 10 0.67 MLDY > dao_mldy.dat
$ ./drk dao view < dao_mldy.dat

Now this file can be shared amongst all dao members, so they hold the generated DAO information and keys. The view command will show us the parameters. If everything looks fine, we can now import it into our wallet:

$ ./drk dao import MiladyMakerDAO < dao_mldy.dat
$ ./drk dao list
$ ./drk dao list MiladyMakerDAO

Minting

If parameters are shown, this means the DAO was successfully imported into our wallet. We use the DAO name to reference it. Now we can create a transaction that will mint the DAO on-chain, and broadcast it:

$ ./drk dao mint MiladyMakerDAO > dao_mldy_mint_tx
$ ./drk broadcast < dao_mldy_mint_tx

Now the transaction is broadcasted to the network. Wait for it to confirm, and if your drk is subscribed, after confirmation you should see a leaf position and a transaction hash when running dao list MiladyMakerDAO.

Sending money to the treasury

Let's send some tokens to the DAO's treasury so we're able to make a proposal to send those somewhere. First, find the DAO bulla, the dao contract spend hook and the DAO public key a d then create a transfer transaction:

$ ./drk dao spend-hook
$ ./drk dao list MiladyMakerDAO
$ ./drk transfer 10 WCKD {DAO_PUBLIC_KEY} \
    {DAO_CONTRACT_SPEND_HOOK} {DAO_BULLA} > dao_mldy_transfer_tx
$ ./drk broadcast < dao_mldy_transfer_tx

Wait for it to confirm, and if subscribed, you should see the DAO receive the funds:

$ ./drk dao balance MiladyMakerDAO

Creating a proposal

Now that the DAO has something in its treasury, we can generate a transfer proposal to send it somewhere, that will be up to vote for 1 block period. Let's propose to send 5 of the 10 tokens to our address (we can find that with drk wallet --address):

$ ./drk dao propose-transfer MiladyMakerDAO 1 5 WCKD {YOUR_ADDRESS}

After command was executed, it will output the generated proposal bulla, which we will use to full the proposal information:

$ ./drk dao proposal {PROPOSAL_BULLA}

We can export this proposal, to share with rest DAO members. The exported file will be encrypted using the DAO keys, so only its members can decrypt and import it.

$ ./drk dao proposal {PROPOSAL_BULLA} --export > dao_mldy_transfer_proposal.dat
$ ./drk dao proposal-import < dao_mldy_transfer_proposal.dat

Now we can create the proposal mint transaction and broadcast it:

$ ./drk dao proposal {PROPOSAL_BULLA} --mint-proposal > dao_mldy_transfer_proposal_mint_tx
$ ./drk broadcast < dao_mldy_transfer_proposal_mint_tx

Members that didn't receive the encrypted file will receive the proposal when they scan the corresponding block, but its plaintext data will be missing, so they should ask the DAO for it. Once confirmed and scanned, you should see a leaf position and a transaction hash when running dao proposal {PROPOSAL_BULLA}.

Voting on a proposal

Now the DAO members are ready to cast their votes. First lets check the dao vote subcommand usage.

$ ./drk help dao vote
Vote on a given proposal

USAGE:
    drk dao vote <bulla> <vote> [vote-weight]

FLAGS:
    -h, --help       Prints help information
    -V, --version    Prints version information

ARGS:
    <bulla>          Bulla identifier for the proposal
    <vote>           Vote (0 for NO, 1 for YES)
    <vote-weight>    Optional vote weight (amount of governance tokens)

Lets use our MLDY governance tokens to vote yes to the proposal.

$ ./drk dao vote {PROPOSAL_BULLA} 1 > dao_mldy_transfer_proposal_vote_tx
$ ./drk broadcast < dao_mldy_transfer_proposal_vote_tx

Once confirmed and scanned, you should see votes information and current status when running dao proposal {PROPOSAL_BULLA}.

Executing the proposal

Once the block period has passed and enough votes have been cast that meet the required minimum (quorum), and assuming the yes:no votes ratio ratio is bigger than the approval ratio, then we are ready to confirm the vote. Any DAO member can perform this action.

Since in our tutorial the MLDY governance tokens we used surpass the quorum, we can execute the proposal right away:

$ ./drk dao exec {PROPOSAL_BULLA} > dao_mldy_transfer_proposal_exec_tx
$ ./drk broadcast < dao_mldy_transfer_proposal_exec_tx

After the proposal has been executed on chain, we will see that the DAO balance has been reduced by 5 WCKD, while our own balance has been increased by the same amount:

$ ./drk dao balance MiladyMakerDAO
$ ./drk wallet --balance

DAO->DAO

Let's now try some more exotic operations!

Since we hold the mint authority of the MLDY token, instead of transfering some to the DAO, we will mint them directly into it:

$ ./drk token mint MLDY 20 {DAO_PUBLIC_KEY} \
    {DAO_CONTRACT_SPEND_HOOK} {DAO_BULLA} > mint_dao_mldy_tx
$ ./drk broadcast < mint_dao_mldy_tx

After confirmation we will see the dao holding its own governance tokens in its treasury:

$ ./drk dao balance MiladyMakerDAO

Now we will create a second dao:

$ ./drk dao create 20 10 0.67 WCKD > dao_wckd.dat
$ ./drk dao import WickedDAO < dao_wckd.dat
$ ./drk dao mint WickedDAO > dao_wckd_mint_tx
$ ./drk broadcast < dao_wckd_mint_tx

We propose a transfer of some of the MLDY governance token from the DAO treasury to the new DAO we created:

$ ./drk dao list WickedDAO
$ ./drk dao propose-transfer MiladyMakerDAO 1 6.9 MLDY {WICKED_DAO_PUBLIC_KEY} \
    {DAO_CONTRACT_SPEND_HOOK} {WICKED_DAO_BULLA}
$ ./drk dao proposal {PROPOSAL_BULLA} --mint-proposal > dao_mldy_transfer_proposal_wckd_mint_tx
$ ./drk broadcast < dao_mldy_transfer_proposal_wckd_mint_tx

Vote on the proposal:

$ ./drk dao vote {PROPOSAL_BULLA} 1 > dao_mldy_transfer_proposal_wckd_vote_tx
$ ./drk broadcast < dao_mldy_transfer_proposal_wckd_vote_tx

And execute it, after the vote period(1 block period) has passed:

$ ./drk dao exec {PROPOSAL_BULLA} > dao_mldy_transfer_proposal_wckd_exec_tx
$ ./drk broadcast < dao_mldy_transfer_proposal_wckd_exec_tx

After the proposal has been executed on chain, we will see that the DAO governance token balance has been reduced by 6.9 MLDY, while the new DAO balance has been increased by the same amount:

$ ./drk dao balance MiladyMakerDAO
$ ./drk dao balance WickedDAO

The DarkFi Book

DAO