Next-Gen DAOs: On-Chain Delegation, Hierarchies & Reputation

[GENERAL] Name and surname of main applicant

MuesliSwap Team

[GENERAL] Are you delivering this project as an individual or as an entity (whether formally incorporated or not)

Entity (Incorporated)

[GENERAL] Please specify how many months you expect your project to last (from 2-12 months)

5

[GENERAL] Please indicate if your proposal has been auto-translated into English from another language

No

[GENERAL] Summarize your solution to the problem (200-character limit including spaces)

We will implement on-chain DAO smart contracts with advanced features such as delegation, hierarchical structures, and reputation systems, building upon our existing base-implementation on-chain DAO.

[GENERAL] Does your project have any dependencies on other organizations, technical or otherwise?

No

[GENERAL] If YES, please describe what the dependency is and why you believe it is essential for your project’s delivery. If NO, please write “No dependencies.”

No dependencies.

[GENERAL] Will your project’s output/s be fully open source?

Yes

[GENERAL] Please provide here more information on the open source status of your project outputs

All project outputs, including smart contracts and off-chain infrastructure code, will be released under the MIT License. This ensures that all code is freely available for use, modification, and distribution, promoting transparency and collaboration in the Cardano community.

[METADATA] Horizons

DAO

[SOLUTION] Please describe your proposed solution

Building upon our previous successful DAO Catalyst proposal, where we implemented a fully on-chain DAO system, we propose to further enhance the capabilities of Cardano DAOs by implementing advanced on-chain features in smart contracts:

1. Delegation Mechanism: Enabling on-chain delegation allows DAO members who may not have the time or expertise to participate in every vote to delegate their voting power to trusted representatives. This increases overall participation and ensures that all voices are heard, including those of smaller stakeholders. It fosters a more inclusive governance process by allowing members to align with delegates who represent their interests, thereby enhancing the efficiency and effectiveness of decision-making within the DAO.
2. On-Chain Implementation: Develop smart contracts that allow DAO members to delegate their voting power to other members on-chain, securely and transparently.
3. Off-Chain Infrastructure: Create user interfaces and APIs to facilitate delegation interactions, making it user-friendly and accessible.
4. Hierarchical DAOs: Implementing hierarchical DAOs allows for better organization and specialization within the larger DAO structure. Sub-DAOs can focus on specific tasks or projects, each operating with its own governance rules tailored to its needs. This delegation of responsibilities reduces governance overhead for the main DAO and enables more agile and efficient decision-making. It promotes scalability and flexibility, allowing the DAO to manage complex operations while maintaining overall cohesion and control through the main DAO’s oversight.
5. On-Chain Implementation: Design smart contracts that support the creation of sub-DAOs, each with its own governance parameters, managed on-chain.
6. Off-Chain Infrastructure: Develop tools and interfaces for managing sub-DAOs, permissions, and interactions between the main DAO and sub-DAOs.
7. Reputation-Based Governance: A reputation-based governance system incentivizes active and constructive participation by adjusting voting power according to a member’s contributions to the DAO. Members gain reputation through activities like participating in votes, creating successful proposals, and receiving delegated voting power from others. This encourages members to engage positively with the DAO, rewarding those who contribute value over those who simply hold tokens. It leads to more informed and committed governance, as decision-making power is aligned with demonstrated involvement and expertise, thereby strengthening the DAO’s overall effectiveness.
8. On-Chain Implementation: Implement a reputation system within smart contracts that adjusts voting power based on user participation and contributions.
9. Off-Chain Infrastructure: Build analytics and tracking tools to monitor reputation metrics and display them to users.

Our solution ensures that all critical components are implemented on-chain in smart contracts, providing security, transparency, and immutability. The off-chain infrastructure complements the on-chain contracts by providing user-friendly interfaces and APIs for seamless interaction.

[IMPACT] Please define the positive impact your project will have on the wider Cardano community

By implementing advanced DAO features on-chain, we significantly enhance the governance capabilities of Cardano DAOs. Below we summarize the benefits of each of the proposed features for the Cardano community:

• Enhanced Participation and Inclusivity:
• On-Chain Delegation: Allows members to delegate voting power securely, increasing participation from those unable to vote on every proposal.
• Efficient Governance Structures:
• Hierarchical DAOs: Enable specialization through sub-DAOs, improving efficiency and scalability in decision-making.
• Rewarding Active Participation:
• Reputation Systems: On-chain reputation mechanisms incentivize engagement and responsible governance.
• Strengthening Cardano Ecosystem:
• Open-Source Contribution: By providing these advanced features as open-source on-chain smart contracts, we empower other projects to adopt and build upon them, fostering innovation.

Measuring Impact:

• Adoption Rates: Track the number of DAOs implementing our advanced on-chain contracts.
• Governance Metrics: Monitor participation levels, delegation usage, and reputation accruals.
• Community Feedback: Collect testimonials and feedback from users and DAO operators.

Sharing Outputs:

• Public Repositories: All smart contracts and off-chain code will be available on GitHub.
• Documentation and Tutorials: Provide detailed guides on implementing and interacting with the advanced DAO features.
• Community Engagement: Host workshops and webinars to educate the community on using the new on-chain capabilities.

[CAPABILITY & FEASIBILITY] What is your capability to deliver your project with high levels of trust and accountability? How do you intend to validate if your approach is feasible?

The MuesliSwap Team is well-known in the Cardano community and credited with delivering high-tech solutions. We pioneered the first decentralized exchange (DEX) on Cardano, launching months before any competition, and to date, we provide the only hybrid AMM-Orderbook DEX with an integrated DEX aggregator.

Our team members are particularly strong in developing secure smart-contract-based decentralized applications (dApps), having pioneered the development of DeFi protocols since the early days of smart contracts on Cardano. We have extensive experience in creating advanced on-chain solutions, including our prior successful DAO Catalyst proposal, where we implemented a fully on-chain DAO system on Cardano.

The advanced DAO features we propose—on-chain delegation, hierarchical DAOs, and reputation-based governance—align perfectly with our expertise. Our team includes creators of the first orderbook DEX on Cardano and developers with deep knowledge of on-chain governance models.

We have also successfully completed multiple projects funded through Catalyst, demonstrating our ability to manage funds responsibly and deliver on our commitments. As a large team of dedicated techies, we have the competence, capacity, and motivation to complete this project on time and with high quality.

Trust and Accountability:

• Transparent Operations: Regular updates and open communication with stakeholders and the community.
• Financial Responsibility: Adherence to budget allocations with documented expenditures.
• Compliance: Strictly following all Catalyst Fund guidelines and reporting requirements.

Validating Feasibility:

• Operational Expertise: Leveraging our extensive experience in on-chain smart contract development to ensure technical viability.
• Prototype Development: Developing prototypes of the smart contracts to test functionality and refine our solutions.
• Rigorous Testing: Conducting thorough on-chain testing to ensure security and reliability.
• Community Engagement: Actively engaging with the Cardano developer community to gather feedback and ensure our solutions meet user needs.

Our proven track record, combined with our commitment to excellence and transparency, positions us as the best-suited team to deliver this project with high levels of trust and accountability.

[PROJECT MILESTONES] What are the key milestones you need to achieve in order to complete your project successfully?

A: Milestone Outputs

• On-Chain Implementation:
• Develop smart contracts for the on-chain delegation mechanism.
• Include functions for delegating, revoking, and updating delegation relationships.
• Ensure that delegation is transparent and verifiable on-chain.
• Off-Chain Infrastructure:
• Develop APIs to facilitate interaction with the delegation smart contracts.
• Create intuitive web interfaces allowing users to easily delegate and manage their voting power.
• Develop dashboard displaying delegation statuses and histories.

B: Acceptance Criteria

• On-Chain:
• Deployment of delegation smart contracts on a testnet.
• Successful on-chain delegation transactions in test scenarios.
• Off-Chain:
• Functional user interface allowing users to delegate voting power.
• APIs for interaction with delegation contracts.

C: Evidence of Milestone Completion

• Smart contract code published on GitHub.
• Demonstration videos showing delegation process.
• Documentation and user guides released.

A: Milestone Outputs

• On-Chain Implementation:
• Develop smart contracts supporting hierarchical DAOs and sub-DAOs.
• Implement customizable governance parameters for each sub-DAO (e.g., voting thresholds, durations).
• Establish on-chain permission controls governing interactions between the main DAO and sub-DAOs.
• Off-Chain Infrastructure:
• Build management tools and interfaces for creating and managing sub-DAOs.
• Implement dashboards displaying real-time data on sub-DAO activities, proposals, and voting results.
• Provide APIs for interacting with sub-DAO functionalities and retrieving data.

B: Acceptance Criteria

• On-Chain:
• Deployment of hierarchical DAO contracts on a testnet.
• Successful creation and governance operations within sub-DAOs.
• Off-Chain:
• User interfaces for managing sub-DAOs.
• Documentation on setting up and interacting with hierarchical DAOs.

C: Evidence of Milestone Completion

• Code published on GitHub.
• Demonstrations of hierarchical DAO functionality.
• Tutorials and guides provided.

A: Milestone Outputs

• On-Chain Implementation:
• Implement smart contracts that track and update user reputation scores based on their participation and contributions.
• Integrate mechanisms where reputation scores influence voting power within the DAO.
• Off-Chain Infrastructure:
• Develop analytics tools and interfaces for monitoring reputation metrics.
• Create interfaces displaying individual reputation scores, contribution histories, and overall rankings.

B: Acceptance Criteria

• On-Chain:
• Deployment of reputation-enabled contracts on a testnet.
• Verification of reputation influencing voting power.
• Off-Chain:
• Interfaces displaying user reputation and contributions.
• Tools for tracking and updating reputation scores.

C: Evidence of Milestone Completion

• Code and documentation released on GitHub.
• Test cases demonstrating reputation system.
• Community presentation and feedback session.

A: Milestone Outputs

• Compile a comprehensive report covering all aspects of the project, including development processes, challenges faced, solutions implemented, and outcomes achieved.
• Produce demo video highlighting the key features, demonstrations, and potential future directions of the project.

B: Acceptance Criteria

• Submission of detailed final report covering all aspects of the project.
• Creation of a professional summary video.

C: Evidence of Milestone Completion

• Final report and video published and accessible to the community.

[RESOURCES] Who is in the project team and what are their roles?

Our project team comprises experienced developers with a proven track record in delivering successful projects on Cardano. Each member brings unique skills and expertise to the project:

• Chris: Project Manager & Backend Developer
• Role: Chris oversees project coordination, ensuring alignment with goals and timely delivery. With experience in coordinating blockchain projects and backend systems, he contributes to backend development and handles documentation. Chris is responsible for transparent fund management and maintains open communication with stakeholders and the community.
• Pasi: Technical Lead & Smart Contract Developer
• Role: Pasi guides the technical aspects of the project, specializing in advanced smart contract development on Cardano. He solves complex challenges and ensures seamless integration between on-chain and off-chain components. Pasi leads the development of the on-chain smart contracts for delegation, hierarchical DAOs, and reputation-based governance.
• Philip: Smart Contract Developer & Governance Expert
• Role: Philip has deep knowledge of on-chain governance models and specializes in writing and optimizing smart contracts using OpShin. He collaborates closely with Pasi on developing the smart contracts and refines the governance mechanisms to ensure they are robust and effective.
• Josh: Software Architect & Integration Specialist
• Role: Josh ensures effective off-chain infrastructure development. He designs scalable APIs, maintains software architecture integrity, and ensures seamless interaction between the off-chain infrastructure and the on-chain smart contracts. Josh optimizes developed components and contributes to building user interfaces and APIs for user-friendly access.
• Patrick: Backend Developer & Analytics Expert
• Role: Patrick focuses on data analysis and backend performance to enhance user experience. He develops analytics tools to monitor reputation metrics and manages off-chain interactions. Patrick contributes to optimizing backend performance and ensures efficient data handling within the off-chain infrastructure.

Should additional resources be required, we are prepared to allocate more developers from the MuesliSwap team or hire additional developers from our pool of contractors to ensure the project’s success.

[BUDGET & COSTS] Please provide a cost breakdown of the proposed work and resources

Milestone 1 (50,000 ADA):

• On-Chain Development:
• Pascal: 15,000 ADA
• Philip: 10,000 ADA
• Off-Chain Development:
• Josh: 10,000 ADA
• Patrick: 5,000 ADA
• Documentation and Testing:
• Chris: 5,000 ADA
• Other costs: 5,000 ADA

Milestone 2 (50,000 ADA):

• On-Chain Development:
• Pascal: 15,000 ADA
• Philip: 10,000 ADA
• Off-Chain Development:
• Josh: 10,000 ADA
• Patrick: 5,000 ADA
• Documentation and Tutorials:
• Chris: 5,000 ADA
• Other costs: 5,000 ADA

Milestone 3 (25,000 ADA):

• On-Chain Development:
• Pascal: 8,000 ADA
• Philip: 7,000 ADA
• Off-Chain Development:
• Patrick: 5,000 ADA
• Testing and Community Engagement:
• Chris: 3,000 ADA
• Other costs: 2,000 ADA

Final Milestone (10,000 ADA):

• Project Close-out Report:
• Chris: 5,000 ADA
• Summary Video Production:
• Production Costs: 5,000 ADA

Notes:

• Costs are allocated to cover both on-chain smart contract development and off-chain infrastructure work.
• The budget reflects fair compensation for specialized skills and efforts required.
• No funds are allocated to third-party services; all work will be conducted internally.

[VALUE FOR MONEY] How does the cost of the project represent value for money for the Cardano ecosystem?

Our project delivers significant value for the Cardano ecosystem by providing advanced on-chain DAO features:

Advanced On-Chain Governance Tools:

• The development of sophisticated on-chain smart contracts enhances DAO capabilities, offering long-term benefits to the ecosystem.

Improved Efficiency and Participation:

• By facilitating on-chain delegation and reputation systems, we improve governance efficiency and inclusivity.

Open-Source Contribution:

• All on-chain and off-chain code will be open-source, enabling other developers to adopt and adapt our solutions, amplifying the project’s impact.

Building on Proven Success:

• Leveraging our previous successful on-chain DAO implementation ensures reliability and effective use of funds.

Long-Term Benefits:

• These advanced on-chain features can become foundational for future DAOs, offering enduring value.

The requested funds are a strategic investment in the Cardano ecosystem’s governance infrastructure, fostering innovation and attracting more projects to the platform.