DAO Governance

On-chain voting and management for Decentralized Autonomous Organizations

The xDai chain, with POSDAO consensus, is a type of DAO. The validators are a distributed group of autonomous individuals who provide STAKE and receive benefits based on participation.

Projects are also using the xDai Chain to run DAO governance mechanisms like proposal and voting systems, community fund collection and more.

DAO Use Case: Galt Project Property Ownership DAO

The Galt Project provides land and property owners the ability to tokenize their properties as NFTs (ERC721) on the Ethereum mainnet. This creates an immutable record, protecting property owners and giving them the ability to buy and sell properties, secure loans, and conduct other transactions directly on the blockchain.

Along with property rights, property owners need the ability to participate in the decision making process within their own community (street, neighborhood, city etc). For example, residents may want to change parking fees, support neighborhood amenities, or fix a fence.

These decisions can be made as a DAO, however the costs become prohibitive on the Ethereum mainnet when many transactions may be required to propose, discuss, vote and enact a single measure. To enable the DAO governance process, voting tokens are created based on the attributes of a Property NFT. Typically 1 square meter of owned property = 1 vote. These tokens are bridged to the xDai Chain (using a TokenBridge AMB Bridge Extension) where on-chain governance can take place without substantial transaction fees.

Property owners can join multiple community DAOs (one for the neighborhood, one for the city etc) and use their voting power directly or in a delegated manner to enact local laws and make decisions that are conducted on-chain. Voting power (number of tokens) is initially determined by property size. However, tokens can be earned and reputation increased through ongoing participation, volunteering, financial contributions to the community budget or other DAO-specific terms.

This separation of concerns, where the property NFT lives on the Ethereum mainnet while the DAO governance processes occur on the xDai chain, plays to the strengths of both networks and highlights the symbiotic nature of the Ethereum ecosystem as a whole.

For more information, visit the Galt Project.