MarketDAO

Bringing Market Forces to Group Decisions

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Core Concept

Unlike traditional DAOs where voting power is static, MarketDAO introduces a revolutionary approach: tradable voting tokens for each election.

This creates a dynamic governance system where voters can:

The result is a governance framework that more accurately captures the true strength of preferences and creates efficient markets around governance decisions.

Key Features

Saleable Voting Rights

Voting tokens are freely transferable during elections, allowing market forces to influence governance outcomes.

Governance Token Vesting

Purchased governance tokens are subject to a vesting period with automatic cleanup and consolidation, protecting the DAO from hostile takeover attempts.

Lazy Vote Token Distribution

Voting tokens are minted on-demand as participants claim them, reducing gas costs for proposal creators.

Purchase Restrictions (Optional)

Optionally limit token purchases to existing holders, requiring new members to be approved via governance proposals.

Join Request System

Non-holders can submit join requests to become members, which are voted on by existing token holders.

Snapshot-Based Voting Power

Unlimited scalability with O(1) snapshot creation, supporting 10,000+ holders without gas limit concerns.

Multiple Proposal Types

Create resolutions, treasury transfers, governance token minting, and parameter change proposals.

Flexible Support Thresholds

Customizable support thresholds and quorum percentages for different governance needs.

Treasury Management

Support for ETH, ERC20, ERC721, and ERC1155 assets in the DAO treasury.

Early Termination

Elections can end early when a clear majority is reached, improving efficiency.

ERC1155 Foundation

Built on the ERC1155 standard for flexible token management, with token ID 0 reserved for governance tokens.

Configurable Parameters via Governance

All major governance parameters can be modified through democratic voting, including support thresholds, quorum requirements, election duration, vesting periods, and token prices.

How It Works

For New Members (Join Request):

  1. Connect Wallet

    Non-holders connect their wallet to the DAO interface.

  2. Submit Join Request

    Provide a description introducing yourself and why you want to join.

  3. Wait for Support

    Existing members review your request and add support if they approve.

  4. Election

    Once support threshold is met, members vote on your admission.

  5. Admission

    If approved, you receive 1 governance token and full DAO access.

For Token Holders (Standard Proposals):

  1. Create a Proposal

    Governance token holders can submit various types of proposals.

  2. Support Phase

    Proposals need to reach a support threshold before triggering an election.

  3. Election

    When triggered, governance token holders can claim voting tokens 1:1 with their vested governance token balance.

  4. Trading Period

    During elections, voting tokens can be freely bought and sold.

  5. Voting

    Cast votes by sending voting tokens to YES/NO addresses.

  6. Execution

    If the proposal passes and meets quorum, it is automatically executed.

Implementation Details

MarketDAO is built on Solidity with a focus on security and flexibility:

Architecture

The system consists of three main components:

Configuration Parameters

When creating a new DAO, you can configure:

Note on Basis Points: All percentage parameters use basis points for precision (10000 = 100%, 5100 = 51%, 2000 = 20%, 250 = 2.5%), allowing for 0.01% precision.

Get Started

MarketDAO is open source and ready for deployment:

Clone the repository and follow the deployment instructions in the Technical Reference to deploy your own instance on any EVM-compatible network.

Future Possibilities

MarketDAO is just getting started, with plans for: