Governance and DAO

Governance and DAO Development

The XSPACE Protocol supports decentralized governance through Decentralized Autonomous Organizations (DAOs). DAOs enable community-driven decision-making by allowing token holders to propose, debate, and vote on key protocol changes, funding allocations, and urban policy initiatives for projects like Galaxy City. This guide explains how to build governance dApps and implement voting mechanisms using smart contracts.

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Building Governance dApps

Governance dApps are decentralized applications that interact with smart contracts to facilitate transparent and trustless decision-making. These applications typically consist of the following components:

1. Proposal Creation: Users submit proposals for consideration, such as upgrades to the protocol or new community initiatives.

2. Voting Mechanism: Token holders vote on proposals, with voting power proportional to their stake.

3. Execution Layer: Approved proposals are automatically executed on-chain or implemented by elected committees.

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Step 1: Smart Contract for Governance

Example: Basic DAO Smart Contract

This contract allows users to create proposals, vote on them, and execute approved decisions:

pragma solidity ^0.8.0;

contract DAO {
    struct Proposal {
        string description;
        uint256 votesFor;
        uint256 votesAgainst;
        uint256 deadline;
        bool executed;
    }

    address public admin;
    uint256 public votingPeriod = 3 days;
    Proposal[] public proposals;
    mapping(address => uint256) public votingPower;
    mapping(uint256 => mapping(address => bool)) public hasVoted;

    constructor() {
        admin = msg.sender;
    }

    function delegateVotingPower(address user, uint256 power) external {
        require(msg.sender == admin, "Only admin can delegate voting power");
        votingPower[user] += power;
    }

    function createProposal(string memory description) external {
        proposals.push(Proposal({
            description: description,
            votesFor: 0,
            votesAgainst: 0,
            deadline: block.timestamp + votingPeriod,
            executed: false
        }));
    }

    function vote(uint256 proposalId, bool support) external {
        Proposal storage proposal = proposals[proposalId];
        require(block.timestamp < proposal.deadline, "Voting period has ended");
        require(!hasVoted[proposalId][msg.sender], "Already voted");

        hasVoted[proposalId][msg.sender] = true;
        uint256 power = votingPower[msg.sender];
        require(power > 0, "No voting power");

        if (support) {
            proposal.votesFor += power;
        } else {
            proposal.votesAgainst += power;
        }
    }

    function executeProposal(uint256 proposalId) external {
        Proposal storage proposal = proposals[proposalId];
        require(block.timestamp >= proposal.deadline, "Voting period not ended");
        require(!proposal.executed, "Proposal already executed");
        require(proposal.votesFor > proposal.votesAgainst, "Proposal not approved");

        proposal.executed = true;
        // Execute proposal logic here (e.g., fund allocation, upgrade)
    }

    function getProposal(uint256 proposalId) external view returns (Proposal memory) {
        return proposals[proposalId];
    }
}

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Step 2: Deploy the Smart Contract

Use Hardhat or Truffle to deploy the DAO contract to the XSPACE Testnet.

Deployment Example Using Hardhat

1. Write a deployment script:

   async function main() {
       const DAO = await ethers.getContractFactory("DAO");
       const dao = await DAO.deploy();
       console.log("DAO Contract deployed at:", dao.address);
   }
   
   main().catch((error) => {
       console.error(error);
       process.exitCode = 1;
   });

2. Run the deployment script:

   npx hardhat run scripts/deploy.js --network xspaceTestnet

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Step 3: Build the Frontend for Governance

Create a user-friendly interface using React.js and Ethers.js to interact with the governance contract.

Connect to the DAO Contract

import { ethers } from "ethers";

const provider = new ethers.providers.JsonRpcProvider("https://testnet.xspace.io/rpc");
const daoAddress = "DEPLOYED_CONTRACT_ADDRESS";
const abi = [
    "function createProposal(string description) public",
    "function vote(uint256 proposalId, bool support) public",
    "function getProposal(uint256 proposalId) public view returns (tuple(string,uint256,uint256,uint256,bool))"
];

const daoContract = new ethers.Contract(daoAddress, abi, provider);

// Example: Fetch Proposal Details
async function getProposalDetails(proposalId) {
    const proposal = await daoContract.getProposal(proposalId);
    console.log("Proposal:", proposal);
}

Voting Interface Example

1. Create a form for users to input their vote:

   <form onSubmit={handleVote}>
       <label>
           Proposal ID:
           <input type="number" name="proposalId" required />
       </label>
       <label>
           Support:
           <input type="radio" name="support" value="true" required /> Yes
           <input type="radio" name="support" value="false" required /> No
       </label>
       <button type="submit">Vote</button>
   </form>

2. Handle the vote submission:

   async function handleVote(event) {
       event.preventDefault();
       const proposalId = event.target.proposalId.value;
       const support = event.target.support.value === "true";
   
       const signer = provider.getSigner();
       const daoWithSigner = daoContract.connect(signer);
   
       const tx = await daoWithSigner.vote(proposalId, support);
       await tx.wait();
       console.log("Vote submitted successfully!");
   }

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Voting Mechanisms and Proposals

The XSPACE Protocol supports various voting mechanisms, depending on the use case:

1. Direct Voting

• Token holders vote directly on proposals, with their voting power proportional to their staked GLXYC tokens.

• Use Case: Protocol upgrades, funding allocation.

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2. Delegated Voting

• Token holders delegate their voting power to representatives who vote on their behalf.

• Use Case: Large-scale governance where direct voting is impractical.

Delegate Voting Power Example

Extend the DAO contract with delegation functionality:

mapping(address => address) public delegate;
mapping(address => uint256) public delegatedVotes;

function delegateVote(address to) external {
    require(to != msg.sender, "Cannot delegate to yourself");
    delegate[msg.sender] = to;
    delegatedVotes[to] += votingPower[msg.sender];
}

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3. Quadratic Voting

• Voting power increases non-linearly, encouraging equitable decision-making by giving smaller stakeholders more influence.

• Use Case: Community-driven initiatives, urban policies.

Quadratic Voting Logic

Implement quadratic voting:

function quadraticVote(uint256 proposalId, uint256 votes) external {
    require(votingPower[msg.sender] >= votes * votes, "Not enough voting power");
    proposals[proposalId].votesFor += votes * votes;
    votingPower[msg.sender] -= votes * votes;
}

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4. Time-Locked Voting

• Votes are locked for a specified period, ensuring transparency and discouraging manipulation.

• Use Case: Long-term governance decisions.

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Developer Resources for DAO Development

1. XSPACE SDK: Simplify interactions with governance contracts:

   npm install @xspace/sdk

2. Explorer Integration: Use the XSPACE Explorer API to display proposal details and voting results in real-time:

   • API: https://explorer.xspaceprotocol.io/api

   • Endpoint: /proposals/{proposalId}

3. Governance Dashboard: Develop dashboards for viewing, creating, and voting on proposals. Use React or Vue.js for an intuitive UI.

This framework enables developers to build robust and transparent governance dApps that empower community-driven decision-making within the XSPACE Protocol ecosystem.