Kyodo — “You decide your own level of involvement”

Nastya Parygina
D E C E N T . F U N D
6 min readJun 29, 2018

-- is the community of crypto enthusiasts. The horizontal hierarchy of Decent.Fund includes specialists of different fields (programming, design, marketing, investment, entrepreneurship) that can communicate in order to to run projects, to motivate each other, to share values from the activities. To receive desired outcome we want to define set of the rules that members are expected to follow and we need a tool to measure members’ involvement and impact for the community.

“You decide your own level of involvement” — Chuck Palahniuk, Fight Club

We are building a system of incentives that suppose to reconcile social and individual goals. We are building the crypto economic ecosystem for our decentralized community.

Kyodo “Open your Metamask” page


There are a few platform to run DAO we were trying for needs.

First was inspired by Giveth, its reward model for DAO became a prototype for our project. The instant tipping feature is based on Giveth bot. The members communicate, complete task and evaluate each other by sending tips for completed tasks instantly.

We were testing Aragon to govern, considered it well-designed solution to implement government: voting, token emission and distribution, creating a new domain under the Colony.

The Beta Colony was already inactive and we couldn’t test one, so we have finally gained the opportunity to deploy the platform for task management and fund distribution when the Colony hackathon came up.

As a result we’ve started to design Kyodo Dapp that could merge different features to govern a community like


We participate in Colony Hackathon with the Kyodo Dapp — incentive tool for building crypto economy for DAO based on Impression revenue model*.

Kyodo workflow

Impression revenue model — is an incentive mechanism, a framework to generate individual income for members by instant pays off (tipping) for completed tasks.

Project description

In order to achieve desired economic effect for we build the Dapp that merges Colony platform with the instruments we use daily.

Kyodo has four layers: smart-contracts deployed on Ethereum network, riot bot, backend and frontend applications.

  1. Smart-contracts system includes proper Kyodo smart-contract and integration with ColonyNetwork. All other parts are depend on this Smart-contracts system.
  2. Frontend dapp serves to join the community, to track activity, to sign transaction and run governance by creating new domains, to voting on funds allocation, funds management, to distribute token to a new members.
    We have designed and built our own user-friendly interface for the app.
    Via the Dapp user assigns his Riot and Ethereum address to receive a profit from the activity within DAO as tips and bounty share*.

3. Riot bot serves to track members’ activity and amount of tips they have earned within the current period. The Bot communicates with backend to keep records of members activity.

4. Backend application with mongo database cache layer is built for instant tipping to avoid high transaction cost of posting it to the Ethereum network. The record about the activity and an amount of tips received is kept on this layer. By the end of period* a final token distribution is being propagated to the blockchain after being signed by members via frontend app.

Period*- the time line while tips are collecting. By the end of period tips are recalculated into tokens and sent as a bounty to a members.

Backend tracks user’s token balances and handle members access to specific domains. Via frontend app one, having enough token share, the member can request access to specific domain and related riot channels, or contrary might revoke his access to those.

Kyodo start page

Project structure

Colony structure supposes separation of colonies’ tasks into domains. In the case of Decent.Fund we’ve chosen four domains which are related to task specifications:

The first domain “Education”, which includes tasks related to the content creates as educational initiatives explaining the blockchain technology. (texts creating, social posts, media activity, design, meet ups)

The second domain “Programming” includes tasks related to building applications on the blockchain (hackathons, coding)

Smart reinvestment and overall fund management of an earned capital are the tasks for the third domain “Fund management”.

And the another group of tasks which is related to administration (voting, token emission, token distribution, members approving, new domains creating) is performed in the fourth domain “Governance”.

The share of tokens member influences the access to specific domains.

Roles in the Colony Network

Manager — anyone belonging to domain
Worker — author of tipped expression
Evaluator — any channel member with a sufficient funds amount

Crypto economy

Incentive mechanism

Tippinig. At the beginning of a period, every member receives a certain amount of tokens so they can reward others. The amount of that tokens is equal to Decent token balance member has at the beginning of a period.

Proof of activity.
Final tips’ distribution is defined by the amount of tokens from bounty the member will receive for his contribution — the share.

A member receives a share of new-issued tokens within a certain period. The size of a share depends on the amount of earned tokens in a specific domain and a rate of a reward set for a particular domain.

*This tipping point scheme complexifies MVP creation, for this reason at the current stage an equal amount of tipping points will be issued and then spent under every domain.
Bounties assignment.


The decent token is based on a continuous token model used to create inflation and reduce the share of inactive members of the community and incentivize participation.

Initial allocation

The fund is backed by liquidity held on multisig wallets.
Current team of participants receive an equal share of initial supply. After that initial price of the token is defined. Some allocation might be kept for future distribution for new members.

The model of the Liquid democracy which is going to be developed with Kyodo supposes an equal distribution of the point’s amount (equal to balance) for tipping in every domain.

Example: A member has 100 DF tokens and refers to Code and Governance domains. At the start of a period, a member gets 100 GOV Points and 100 CODE Points that could be used for tipping.

Token emission via minting

Expecting mutual actions lead to funding growth in value, every period some small percentage of existing tokens are being issued and staked as a bounty. This action reduces the share of inactive members.

Every first block in period bot copies token balances of users and stores corresponding points balances.
Three days before the period ends users have to sign their allocation of points within specific domains.

Having had the idea of community and crypto economy vision, we faced some issues with building Kyodo Dapp because of the time limitation. We weren’t able to realize all the functionality we wanted so at this stage you can see the simplified tipping feature. We are continuing to work on Dapp further. Next steps are:

  • Launch Beta Kyodo for internal using
  • Testing hypothesises and Colony Network functionality
  • Integration and layer for Aragon for governance
  • Deploying own Ethereum sidechain for tipping functionality (one possible solution, is Loomx SDK) to reduce the cost of transactions in vs the mainnet. Using the sidechain is also much more secure than current MongoDB layer implementation.
  • Landing page for the project
  • Bot implementation for other platforms (Telegram, Slack, etc)

Thank you!

Follow D E C E N T . F U N D on Medium and Twitter to be updated for the further announcements about Kyodo.

Project participants:

Igor Line, Nastya Parygina, Nikita Kudryavtsev, Рома, Alina Loseva


co author Igor Line

co author Nikita Kudryavtsev

logo by Alina Loseva

cover picture by Alina Loseva

ui design by Рома

edited by Masha Pipenko