Hyperloot — building real DAO / flat organisation

Big job, huh?!

We’ve got a DAO to build! And a transparent one no less. Also, easy-to-follow, reliable, and providing high levels of engagement for the participants.

Lots of hours, consultations and sleepless nights later, we came up with an idea: how about we DON’T do an ICO? We’ve no goal of creating another meaningless token to be pumped and dumped. And we need some proper Proof of Stake mining that does not abuse hardware (which, you guessed it, belongs to a handful of people).

Analyzing our previous experience along with the current market we came to a conclusion that making a new “Bitcoin” or “Ethereum” is not really effective as it divides communities, creates a separate blockchain and infrastructure that will exist simply to duplicate what market already has. To evade that, we decided to use Ethereum smart-contracts as a mining instrument. It’s an elegant and agile solution.

At the base level DAO is heavily reliant on effective resource use, not expenses mind you, but effectiveness.

As an example we’ve got EOS — a complete PoS where most of the tokens is held by a few addresses since the start. Keeping this in mind we came up with a pre-mined token amount: 0. Bottom line, Hyperloot DAO has ZERO pre-mine.

We based our product on 3 simple premises:

1. Mining starts with no pre-allocation — everything is mined according to the product needs and milestones
2. Mining is operated by the people involved in the DAO development
3. Most of the mined tokens are intended for further development

Tokens are the representation of your stake within the organization as well as payment for it’s implementation. It makes them valuable to an individual; as much as to the DAO. Looking further down the roadmap we will use them to voting.

Using a standard ERC20 is no rocket science. It’s proven, it’s reliable, it’s well-known and has all the infrastructure as well as voting and paying mechanics.

Hyperloot smart contract is fully ERC20 compliant with two major modifications:

1. Emission governance

2. Total emission limitation 1 000 000 000 (so that the supply is limited, for obvious reasons).

Creating a real DAO is a team effort. And to support the effort we found a simple solution that looks something like this:

The amount of emission is limited to 0,1% of the remaining tokens daily.

Putting two and two together and counting in all of the above we got the following ratio:

1. 30% tokens goes to the DAO (DAO will pay for the product, business development, marketing, etc)
2. 30% to the investment fund (we plan to finance cool indie games)
3. 40% to miners (think of it as a preferred stock, for stacking your tokens)

So, if you’re a fan of math, first day will see 1 000 000 token emission, with 400 000 going to miners. Second day — 900 000 emission with 360 000 allocated for miners, etc.

Anyway, so we have the usual ERC20 to mine, what’s new here?

Well, we still have to tie the miners to the tokens somehow. We could’ve used another ERC20 that is responsible for mining and rewards. But then again: how do we define which tokens were mining and need to be rewarded? We could freeze them during the reward time, but that puts too much power in one place.

And that’s where ERC721 comes in: an adopted standard of ETH tokens with a proven track record in projects like CryptoKitties.

This token can be transferred or exchanged, it is really close to the ERC20 but it always has a unique ID that can’t be changed.

Using ERC721 for mining instantly resolves the token identification issue and divides the feature set.

Tying two types of tokens requires a governing contract, duh! And we got one! It has all those things you might need: mining conditions, token division between the miners, the fund and the DAO.

As we go on it might be replaced by another one. But fear not, all of your balances will remain in place, be it ERC20 or ERC721. This is a key condition for transparency on our end.

As the tokens are fairly standard by design, and only our rules are the secret sauce, let’s take a closer look at the smart contract side of things, shall we?

The emitting function is called “mining”. It can be used by any user! As you see — it excludes the possibility of mining control from someone exclusively. The contract has a simple limitation — it can be recalled once in 24 hours. If it’s recalled once in a week — all of the tokens mined in the last 7 days shall be released.

As the “mining” function is recalled the contract writes rewards for every mining token active.

Mining tokens can only be purchased with ERC20 tokens using “buyHLPMT” function. That means they are only connected to DAO and can be freely transferred between participants. Mining tokens start with a price of 10 000 ERC20 tokens and the price will increase by 1000 every 30 days. The price cap for a mining token is 40 000 ERC20 tokens. All of the proceeds for mining tokens purchase goes directly to the Hyperloot fund, never to the initial team or some particular wallet.

To calculate the mining token price just use the “getPrice” function. There’s no gas payment for this function.

To calculate the current reward size for a mining token use the “checkReward” function with internal parameters od mining token ID. There’s no gas payment for this one either. You can ask for a particular reward size or cumulative reward for all your tokens.

“getReward” function (you guessed it) lets you obtain your reward, with internal parameter of mining token ID as well. Rewards are only granted to the mining token owner. They are all stored on the contract expecting the “getReward” command.

We’ve also added a service command that is only available for the contract owner— it’s “sendReward” — it can be used any time to send out the reward to the token owners. It also relies on mining token ID.

The contract has internal means of calculating time and rewards. It is done to prevent doubling the rewards with the reward payout time being written down.

That’s about it for the whole mining and reward part of our DAO. Got anything you wanna know or add? Become a part of community and start earning your Hyperloot tokens in exchange for your valuable contribution to the DAO.

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