DoinGud: Building a DeSI Protocol with Multilevel Governance

The organic connection between grassroots movements and Decentralized Impact is breaking new ground with the adoption of blockchain technology and DAO governance. This is the story of  DoinGud, a project that leverages decentralization and transparency towards doing good. Charity organizations, communities, and individuals can join the DoinGud ecosystem by forming their own DAOs and coordinate over social causes. Featuring a Decentralized Impact protocol operated by a multilevel governance system, the DoinGud project aims to facilitate greater transparency, accountability, trust, and financial delivery in accordance with the Sustainable Development Report. Impact communities using the protocol can organize around these principles to create a transparent system for its operational and fundraising process.

Navigating uncharted pathways in Decentralized Impact came with the challenge of designing ecosystem governance. Daoism Systems was responsible for developing the protocol’s multilevel DAO, working in close collaboration with the DoinGud team. This article gives an overview of the project’s technical specifications for a Decentralized Impact ecosystem.

DoinGud — the protocol for doing good

DoinGud started as an NFT marketplace focusing on charity, but the initial concept has always been to build an ecosystem for Decentralized Impact as a solution to the lack of transparency, trust, and effectiveness of existing funding and delivery models.

The protocol allows communities to form DAOs around a specific social cause, such as feeding the homeless or natural disaster relief, and to:

  • Bring greater transparency to Impact operations

  • Raise and allocate capital

  • Make donating easy

Multilevel Architecture

Today, there is no platform to connect over social impact that allows users to donate, support, and participate in the causes they care about. There are two levels at play: social impact at large, and the granularity of each specific cause. Which is why the DoinGud protocol features multilevel architecture consisting of  the DoinGud DAO, to address the greater issue of Decentralized Impact, and the Guilds, to coordinate over specific causes.

I. DoinGud DAO

The DoinGud DAO moderates the growth and development of Guilds and is governed by the DoinGud community. It also allows the Guilds to interact within a self-managing system.

The major point is having a DAO with an integrated ecosystem and the ability to deploy SubDAOs(Guilds) that automatically function within that ecosystem autonomously.” –Lourens, product lead

DoinGud DAO Roles:

  • Gud People — staked AMOR holders who elect Gud Guardians and vote on Guild proposals.

  • Gud Guardians — caretakers of the DoinGud ecosystem and owners of the governance process.

  • Guilds — Impact makers, Impact Reporters, Signalers, Communities of Creators and Collectors. Guilds are SubDAOs where funding is raised and transparently streamed to the impact makers.

DoinGud’s governance is designed with unbiased distribution of power in mind. Guardians election happens in voting cycles, so that delegation mechanisms allow the best representation from DAO members.

II. Guilds

The Guilds are SubDAOs that form around specific impact topics. Each Guild represents a specific organization and is owned by their representatives.  They are individuated from all other organizations including the DoinGud DAO and do not require external interactions to operate. They manage their own funds and donations, distributing tokens between Impact Makers and managing other needs within the Guild.

The main idea is about giving organizations the tools to be able to deploy the DAO within the broader token ecosystem that will help to sustain DAOs and organizations that are trying to do good in the world. So it is a complicated system, and we had to organize everything in the most logical way to make it easy to use by every community.” –Lourens

There are eight roles within Guilds and smart contract enforced rules for how roles interact with each other. For example:

  • Impact Makers join specific Guild’s projects

  • Impact Reporters follow and observe the work of Impact Makers and create reports about their impact.

The most challenging part [for the Guilds] was integrating all these different building blocks and having them work together well, because many of these things on their own aren't too complex. But when you have multiple contracts that need to work together as securely as possible, it becomes much more difficult..” –Lourens

Technical Specifications: DAO pattern, Governance Flow, and Levels Intrinsics

Three Guilds for the Servicemen under the sky,

Seven for the Volunteers in their halls of stone,

Nine for Charity orgs doomed to help,

One for the DoinGud on its decentralized throne

In the Land of Web3 where the Crypto lie.

One DAO to manage them all, One DAO to find them,

One DAO to bring them all and in the decentralization bind them

In the Land of Web3 where the Crypto lie.

The Book of DAOs. 32:1

Generated by Midjourney
Generated by Midjourney

DAO pattern

Both the DoinGud DAO and Guild levels follow the general architectural pattern consisting of tokenomics and governance, with a few fluctuations.

Tokenomics assures the proper functioning of the DAO through the circulation of its economy and governance delegation. There are two tokens:

  • Utility token - It is used for the production of the Governance token. It is tradable, transferrable, and can be exchanged on platforms like Balancer or Uniswap.

  • Governance token - works as voting power for the DAO. It is generated by staking the utility token. Guild Voting happens through Snapshot.

The three main governance components of the DAO are the:

  • Controller - The DAO’s operational hub in which fees, operations reports and donation management circulate through.

  • Avatar - a treasury and an execution engine of the calls on behalf of the organization.

  • Governor - This part functions as a Guilds moderator. The Guardian Round Table review proposals that have passed the Snapshot vote, then approve and execute the results. Proposals pass only after being approved by over 20% of the round table. Guardians vote on chain, after a proposal is passed on Snapshot.

Governance flow

The governance flow is the same for both the DoinGud DAO and for each Guild. There are two votes for each proposal, and their flow is as follows:

Levels Intrinsics

Now let’s take a deeper look at the differences between MetaDAO and SubDAO governance.

DoinGud DAO - MetaDAO

The smart contract architecture includes a module called Vesting. This is used for the initial token allocation, when the MetaDAO liquidity token is minted. Contributors and Creators of the DoinGud DAO will have their tokens locked for a predetermined period of time.

The MetaDAO can receive ERC20 token donations and distribute the funds not to the MetaDAO itself, but to the Guilds based on their weights. These weights are called indexes, and can be manually created by DoinGud users.

Furthermore, the MetaDAO collects fees taken for $AMOR transfers and creation of the Guild’s liquidity tokens. Those taxes are distributed between Guilds and the MetaDAO.

Guilds - SubDAOs

A notable difference with the SubDAO is the FXAmor token, which is the curation token. Each Impact Maker needs Impact Reporters to review or audit the Decentralized Impact it has made. After the audit, an NFT Impact report is created which shows how effective a charity is. Impact Reporters can also share less formal reports of impact being generated like simple videos, articles, etc. rather than full audits.

Later, the FXAmor curation token enables users to leave positive or negative feedback about the report. If the report is accepted by the community, its creator and the voters receive a proportional amount of the proceeds raised by the guild in that reporting period. On the other hand, a report determined by FXAmor holders to be false or misleading, can be rejected. In this case the Impact Reporter does not receive a reward, and the Impact Signalers who voted to protect the Guild from the false report are rewarded with Guild tokens.

Conclusion

Contributing towards the greater good is anything but monolithic. In light of this reality, our custom-built multilevel governance solution embeds unity in diversity into its infrastructure for charity organizations, communities, and individuals to join the DoinGud ecosystem and coordinate over collective purpose. Despite the challenges that came with breaking new ground in the space, our collaboration earned invaluable technical learnings that contribute to the greater story of Decentralized Impact.

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