PowerPool ecosystem report: Breadchain concludes first milestone of Builder Grants program

At the end of 2023, Breadchain Cooperative was awarded a $20k grant from PowerPool to spearhead the creation of post-capitalist automation use cases. Among these initiatives is the automation of crowstaking yield disbursement within the Breadchain Network, minimizing the influence of big capital while also encouraging the creation of $BREAD, their community token on Gnosis Chain.

We are excited to announce that the first milestone has been achieved with the first test job!

The disbursement process combines two distinct governance mechanisms: (1) a pre-determined even-split among member projects and (2) token voting for 50% of the total disbursement each month.

The first is meant to minimize the influence of capital while giving assurances to projects in the network and the second is meant to help encourage the creation of $BREAD among supporters of each project. For production, they will do a monthly automated disbursement based on the combination of these 2 methods using PowerAgent.

How the system works

All of the components include the BREAD token contract and what it points to. The YieldDisburser smart contract is responsible for resolving vote outcomes and initiating the disbursement process. The contract provides a voting interface and the disbursement to each project is proportional to the voting outcomes.

PowerPool Keepers will initiate the disbursement process by interacting with the YieldDisburser contract on a monthly basis. The sequence unfolds as follows:

• The Keeper first calls the resolverYieldDistribution() function to ensure that the yield is ready and votes have been accounted for
• Upon successful resolution, the Keeper triggers distributeYield()
• Subsequently, the YieldDisburser contract disburses half of the yield to each project’s multi-sig wallet according to the token-weighted vote outcome, while evenly dispersing the remaining half among all projects

A successful Breadchain test job has shown that their system is viable and will be able to take full advantage of PowerAgent to automate their novel yield governance mechanisms. It also paves the way to create templates for similar governance mechanisms for other DAOs that want to use rhythmic disbursement for governance.

You can learn more about the project and contribute by going to their GitHub and joining their Discord server.

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