HomeCoinsPieDAO DEFI Small Cap (DEFI+S)Own the DAO - Walkthrough of veDOUGH | by Alessio Delmonti |...

Own the DAO – Walkthrough of veDOUGH | by Alessio Delmonti | PieDAO | Oct, 2021

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Governance Mining is a fancy name to say:
You cannot pretend to get paid for a job just for showing up.

It’s our approach to develop a solution to the free-riding problem in DAO governance and it’s designed to be flexible and to evolve over time.

From a technical perspective, the claiming of rewards is gated at the contract level by a Merkle root which verifies that the address claiming is flagged as active.

This system allows for participation to be tracked off-chain and it’s easy to iterate.

Vitalik most recently wrote about the need to Move beyond coin voting governance, we believe a great place to start is by working on codifying and rewarding participation.

DAOs are communities first, the relevant metrics are first and foremost related to contribution.

The commitment level of each contributor, voting frequency, membership in a Working group, etc. These are the KPIs I’m excited to optimize rewards for overtime.

Since we have to start from somewhere, at the current stage, the definition of “Active Participant” is simple, it tracks the participation to Snapshot votes with 2 rules:

  • veDOUGH holders who did at least one vote during the calendar month are flagged as active and able to claim rewards.
  • veDOUGH holders idle for >90 days have their rewards redistributed to everybody else.

You don’t need to claim rewards and can let them accumulate as long as you stay active.

Below a visual representation, it starts with 3 holders Alice, Tom, and Ray, all staking the same amount of DOUGH with different time commitments.

Ray knows what’s up

In the table below, you see a simulation of 3 different scenarios.

  • Alice avoids voting on M1, M2, M3 and as such has her rewards redistributed to others before getting back on track.
  • Tom votes and claims every single month.
  • Ray votes and claims every other month.
Don’t be like Alice

Both Tom and Ray benefit from active participation and end up earning the rewards which were originally assigned to Alice.

Rewards are distributed in the form of a basket of tokens called SLICE.

From a technical perspective, SLICE is a regular PieVault with the only difference that the function joinPool is disabled, which means only the treasury can mint SLICE.

Inside SLICE your find protocol fees coming from products like PLAY and BCP, as well as Alpha and farmed tokens from yield generating strategies by the Treasury.

Monthly reports of Treasury yield can be found here.

Rewards are mostly unrelated to DOUGH price, giving good confidence in returns.

I always believed the end game for crypto was to create generational wealth to enable anyone to have steady returns, escape the rat race and live their lives.

Today we are one step closer to that vision.

The #FullTimeTokenHolder movement has implications that reach far beyond PieDAO: individuals from across the world are starting to understand that they can get compensated for growing a community they share values with, instead of selling hours of their life for salary.

We are entering a new era where DAOs are creating the future of work.

Hard to argue with that.

You can be part of it right now, earn your DOUGH by contributing to the DAO according to your skill set. You can start with the Bounty Board to see what are the priorities.

Join us on Discord and come to say hi at the next community call — 8th of October.

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“Fact You Need To Know About Cryptocurrency - The first Bitcoin purchase was for pizza.” ― Mohsin Jameel

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