mirror of https://github.com/nucypher/nucypher.git
58 lines
3.3 KiB
ReStructuredText
58 lines
3.3 KiB
ReStructuredText
.. _dao-architecture:
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NuCypher DAO
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============
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Overview
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--------
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The `NuCypher DAO <https://client.aragon.org/#/nucypherdao/>`_ is a decentralized autonomous organization to
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rule over the NuCypher Network and powered by the `Aragon Project <https://aragon.org/>`_.
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The NuCypher DAO comprises the core stakeholders: the stakers that put up resources to run nodes for the network and
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serve users. NuCypher stakers will be able to validate issues, proposals, and changes that affect the operation
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of the network, with validation power directly proportional to the amount of tokens staked. These issues include
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proposed smart contract upgrades, changes to the global fee rates, and adjustments to other parameters of the NuCypher
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protocol and the DAO itself. Additionally, all NuCypher stakers will be able to submit proposals to the DAO,
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regardless of the size of their stake.
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Validating Proposals
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--------------------
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Internally, the NuCypher DAO is powered by `Aragon OS <https://aragon.org/product>`_, which provides a secure
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and well-engineered implementation for DAOs based on Ethereum, and an intuitive user interface to interact with
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them. A central part of this DAO architecture is the Agent, a smart contract capable of executing proposals validated
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by the community of stakers. The NuCypher Network's smart contracts are owned by the Agent which, in turn, is
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configured in such a way that it only executes actions that are validated by a majority of the staking community.
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For NuCypher stakers, the process of validating proposals is very straightforward. Each time a staker makes a
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proposal to the community, all stakers have the chance to validate that proposal:
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.. image:: ../.static/img/dao_proposal.png
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:target: ../.static/img/dao_proposal.png
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Clicking on ``Yes`` or ``No`` triggers an Ethereum transaction signalling each staker's opinion on the proposal. That
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staker's opinion is weighted by their stake i.e. if they have 30,000 NU staked, then that staker will have
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a weight of 30,000 NU tokens.
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Depending on whether a quorum is reached, proposals may be validated or rejected. A proposal can only be validated
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if and only if:
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#. it receives > 60% support, i.e., of all the tokens that participated, more than 60% are required to signal ``Yes``
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#. it receives > 25% approval, i.e., more than 25% of all the staked tokens that could have possibly participated are required to signal ``Yes``
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If a proposal is validated, it can take immediate effect on the NuCypher Network via the Agent. Note that not all
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proposals necessarily aim to produce on-chain effects on the network's smart contracts; some
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proposals may seek to consolidate a current of thought among stakers. For example, deciding on new directions for
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the network, or collecting the community's sentiment about some past event or decision.
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DAO Forum
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---------
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The `DAO Forum <https://dao.nucypher.com/>`_ is the central arena (pun intended) to discuss, analyze, and collaborate
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on potential solutions which may eventually be submitted as DAO proposals. Using the forum ensures rigorous analyses
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and community consensus to provide the highest likelihood of acceptance of proposals to the NuCypher network. For
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more information on the proposal process, consult the
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`welcome message <https://dao.nucypher.com/t/welcome-to-the-dao-forum/29>`_.
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