All about Tokamak DAO(1)

Mar 26 · 8 min read

What is Tokamak DAO?

(1) What is Tokamak DAO <- Here

(2) Tokamak DAO smart contract

(3) DAO user interface and its use

(4) FAQ


0. Abstract

After a long development, Tokamak DAO, a decentralized autonomous organization of the Tokamak Network, was launched. Tokamak DAO is defined as a smart contract system and autonomous organization built on a blockchain that allows holders of Tokamak Network token(TON) to directly participate in decision-making on major agendas that affect the ecosystem of Tokamak Network. Tokamak DAO allows the holders exert direct or indirect influence on almost all parts of Tokamak Network from crypto economics related issues like inflation, issuance, incineration, PowerTon, to technical issues such as staking and protocol upgrades. This post includes all the matters related to Tokamak DAO, from why we need DAO to actual usage with knowledge about its structure and operation mechanism. Along with the launch of Tokamak DAO, we expect to deliver accurate information to the participants of Tokamak Network ecosystem.

1. Purpose and significance of Tokamak DAO

1.1 Decision-making model : Indirect vote

Tokamak DAO can be defined as a decision-making body that can determine the key specifications of smart contracts of Tokamak Network. Specifically, users holding Tokamak Network Token(TON) delegate the tokens to trusted representatives, and the elected representatives form a committee. An agenda is made to be accepted or rejected based on consensus between committees.

This can be seen as a kind of indirect voting method in which the voting rights of the token are delegated to the representative, and in terms of the election method itself, the process of selecting the top 21 nodes of validators in the EOS blockchain, or the voter’s agent in the democratic system. It can be viewed as very similar to the National Assembly, which elects and carries out legislative activities.

1.2 Protocol upgrade : Soft fork vs Hard fork

soft fork vs hard fork

Layer 2 can be seen as one of several decentralized applications (DApps) from the perspective of Layer 1 (Ethereum). The application that performs transaction processing and verification was created for the purpose of securing scalability. In this respect, the Tokamak network ecosystem itself can be viewed as one huge software (DApp).

All software evolves to accommodate different needs as users grow. It’s a process called update or upgrade. The software called Tokamak Network should also be upgraded appropriately according to the time and environment. DAO can be considered as the decision-making body that makes all the matters concerning the upgrade.

The important point here is why we introduced complex decision governance such as DAO for feature updates. From the conclusion, it is because unlike other general software, it has the unique characteristic of consensus that a public blockchain has.

Unlike other software, blockchain generally goes through a consensus process. If users don’t fully agree, two different versions of the software may exist at the same time. This is called a fork in blockchain Ethereum and Ethereum Classic, Bitcoin and Bitcoin Cash can be examples.

There are two ways of fork, soft fork and hard fork. Details about the conceptual differences between the two are not covered in this article (a reference attached). The important point is that Tokamak Network is choosing DAO, a majority vote model, as its governance model for software upgrades, which is more of a soft fork.

As an upgrade method, neither the soft fork nor the hard fork has a complete absolute advantage. Each has its own pros and cons. However, the reasons for choosing soft fork as a method of improving the Tokamak protocol are as follows.

1.3 Agenda

Agenda is a kind of proposal that contains suggestions to improve the protocol of Tokamak Network. Anyone can come up with an agenda, and the committee decides on the agenda.

Agendas have two types, A and B. Type A are agendas related to staking, inflation, and the use of the tokens DAO holds (17.5 million TON). Type B is a collection of engineering agendas related to upgrading smart contracts of Tokamak Network, such as the staking smart contract and the setting of permissions between the contracts. Group A agendas mainly deal with economic issues, while Group B agendas mainly deal with smart contract systems.

Type A agendas are expected to be created through the process of forming public opinion in the Tokamak community, and Type B’s agendas are expected to be mainly created by the Tokamak development team.

A certain amount of TON is required to create an agenda in case of a DoS attack that causes a lot of unnecessary agendas, making it impossible to handle important agendas. The initial cost is set at 100 TON, and even adjusting this cost can be proposed as an agenda.

1.4 Committee, Candidate and Agenda Resolution

A committee is a group that has the power to vote for or against previously established agendas. In order to occupy a committee seat, you must first be a candidate, and among them, you must be delegated (supported) with a significant amount of TON. To be precise, a candidate who has staked or delegated the most TON can take a seat, and more precisely, if more TON are delegated than the existing committee member, the new candidate can occupy the seat by Challenging.

To be a candidate, you need to stake a minimum of TON. The initial setting is 1,000 TON, and the token will not be returned unless the setting value is changed. However, interest incurred from these staked TON can be received permanently. The amount of tokens that must be staked to become a candidate can also be adjusted through an agenda.

You have to pay at least 100 TON to create an agenda. Once an agenda is created, it is announced for a certain period of time from the date of creation of the agenda making it a public agenda for anyone. This period is called the Minimum Notice Period, and at the end of this notice period, an agenda committee is formed. Members of the agenda committee will be confirmed as members of the DAO Committee at the end of the Minimum Notice Period.

The members of the Agenda Committee and DAO Committee may vary from time to time. This is because the members of the DAO Committee may change in real time depending on the amount of TON delegated and/or staked. But the Agenda Committee will be confirmed when the Minimum Notice Period is over. DAO committee member changes after confirming the Agenda Committee can be an example. The detailed logic related to this can be found in the next post <All about Tokamak DAO (2) — Smart Contract>.

Additional reference 1 — Terms


Building an Ethereum Blockchain ECO system to Change the…

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