In this article, we provide a step-by-step guide on submitting proposals, voting, and leaving the YangDAO.
A quick overview of the YangDAO
- The YangDAO is a decentralized organization that allows its members to propose and vote on new funding initiatives.
- Prospective members pledge money into the YangDAO pool (the Freedom Bank) in return for shares ($1 per share). These shares are used to vote on other membership applications and funding proposals. At any time, a member may ragequit, exchanging their shares and withdrawing a proportional amount of money from the Freedom Bank.
- The process for submitting membership and funding proposals is the same. Only members may submit proposals. If a prospective member wishes to join, an existing member must submit a proposal on their behalf.
- The YangDAO runs on the Ethereum blockchain and uses DAI, a trusted digital currency that is pegged 1:1 to the US Dollar (1 DAI = $1 USD).
Submitting a Proposal
Existing members may submit membership proposals on behalf of new applicants, minting new shares to the applicant in return for their pledge to the DAO.
Members may also submit proposals for funding, minting new shares to themselves in return for no pledge and providing a detailed description of the project being funded. They can later exchange these shares for a portion of the money in the Freedom Bank by ragequitting.
Any member wishing to submit a proposal must deposit and approve 40 DAI to the DAO. This deposit is returned to the member after voting on the proposal has ended (at the end of the 7-day grace period).
1) Membership Proposals
A prospective member creates a YangDAO account and approves DAI to the DAO. An existing member then submits a proposal on their behalf. A member who already has shares may submit additional proposals for shares in return for pledging DAI.
The applicant is the address of the person who has approved DAI to the DAO and wishes to receive shares in return. Token tribute is how much DAI has been approved by the applicant.
For prospective members, use this form to submit your YangDAO address after you have created an account, deployed your wallet, and approved at least 40 DAI. The summoner will then apply on your behalf, requesting 1 share per 1 DAI you approved. Alternatively, if you know somebody who is already a member, you may ask them to apply on your behalf.
2) Project Proposals
A member may submit a funding proposal by naming themself as the applicant, requesting a number of shares equal to the total budget, and pledging 0 DAI. They will still need to approve 40 DAI for the proposal deposit, which will be returned to them after voting on the proposal finishes.
E.g. If you are proposing a project with a budget of $1,000 USD, request ~1,000 shares and pledge 0 as tribute.
When a proposal is submitted, a 7-day voting period starts. Members may use their shares to vote on any proposal that has entered the voting period.
The total number of proposals per day is capped at 5, including membership proposals. These can be staggered by day for a maximum of 35 proposals being voted on at any time. If the maximum number of proposals being voted on has been reached, the proposal will enter a queue.
At the end of the voting period, a 7-day grace period starts. This allows members time to ragequit, withdraw their funds, and leave the YangDAO.
If a simple majority of votes cast on the proposal are in favor at the end of the grace period, the proposal automatically passes and new shares are minted to the applicant.
The YangDAO has 2 built-in safety mechanisms to prevent malicious use of funds and extreme member dilution.
Ragequit — A member may exchange their shares in exchange for a proportional share of funds in the Freedom Bank at any time.
E.g. If you hold 1% of the total shares, you may withdraw 1% of the funds in the Freedom Bank by ragequitting.
Dilution Bound — If the combination of a proposal and a member ragequitting would result in any member being diluted more than 3X, the proposal automatically fails.
- An applicant pledges money to the DAO and an existing member applies on their behalf.
- A member may submit a funding proposal by requesting shares to themself and pledging $0.
- Each proposal goes through a 7-day voting period and 7-day grace period.
- At the end of the 2-weeks, the proposal passes if a majority of votes cast are in favor of it.
- A maximum of 5 proposals may be processed daily for a total of 35 proposals being voted on at any time. If the cap has been reached, the proposal enters the queue.
- At any time, a member may ragequit and exchange their shares for a portion of the money in the Freedom Bank.
- The dilution bound prevents any member from being diluted more than 3X as a result of a proposal and ragequitting.
The YangDAO is a clone of the 👹 Moloch DAO, differing only in terminology. For a detailed technical explanation of how the DAO works, see the Moloch whitepaper / github. The YangDAO wallet is powered by Abridged.
Note: The YangDAO is not affiliated with Andrew Yang, the Andrew Yang presidential campaign, Friends of Andrew Yang, Pets for Andrew Yang, or any US political candidate, party, or committee.
You will not make money by becoming a member of the YangDAO. YangDAO shares do not offer to the holder the possibility of profits. All membership deposits are made in a price-stable currency, removing the possibility of currency or token speculation on the YangDAO platform.