DAO Mechanism

Technical Documentation for General Asset DAO Implementation

The General Asset DAO (Decentralized Autonomous Organization) within the Asset Management Contract is a crucial component for enabling democratic decision-making among token holders. This DAO allows for the creation, voting, and execution of proposals regarding the management and legal aspects of the asset. Here’s a detailed technical breakdown:

DAO Structure and Workflow

1. Proposal Creation:

   • Admin roles, predefined in the tokenization contract, have the authority to create proposals.

   • A proposal includes:

     • Subject: Brief title of the proposal.

     • Short Description: Concise overview of the proposal.

     • Detailed Description: In-depth details, rationale, and implications.

     • Attachments: Supporting documents or links, stored off-chain with references on-chain.

     • Contact Details: For proposer communication.

     • Timeframe: Proposal duration, ranging from 1.5 to 3 weeks.

2. Voting Mechanism:

   • Tokenholders (stakeholders) can vote 'Yes' or 'No' on each proposal.

   • Each token equates to one vote; tokenholders can vote based on their token count.

   • Smart contract tallies votes and enforces one vote per token.

3. Decision Threshold:

   • A proposal is accepted if it receives over two-thirds (66%) of the total votes.

   • Mathematical formula for threshold calculation: acceptedVotes > (totalVotes * VOTING_THRESHOLD_PERCENTAGE / 100)

4. Proposal Logging and Encryption:

   • Proposals and results are logged on the blockchain for transparency.

   • Data encryption ensures that details are readable only by tokenholders.

5. Legal Basis and Execution:

   • Proposals can serve as a legal basis for changes regarding the asset.

   • Executed proposals may lead to actions like asset relocation or structural renovations.

   • The contract executes accepted proposals automatically or flags them for manual execution, depending on the nature of the proposal.

Technical Considerations

1. Smart Contract Functions:

   • Functions for creating, voting, and executing proposals.

   • Algorithms to ensure vote integrity and enforce the voting threshold.

2. Security and Privacy:

   • Implement security measures to prevent unauthorized proposal creation and voting manipulation.

   • Privacy mechanisms to protect the identity and votes of tokenholders, possibly utilizing zero-knowledge proofs.

3. Data Storage and Management:

   • On-chain storage for critical data like votes and proposal outcomes.

   • Off-chain storage (e.g., IPFS) for attachments and detailed descriptions, with on-chain references.

4. Integration with Token Contract:

   • DAO operations must align with the token contract, especially for validating tokenholder votes and token count.

5. Legal Compliance:

   • Ensure that DAO operations comply with relevant legal standards, particularly for proposals leading to legal changes.

6. Upgradeability and Scalability:

   • Design the DAO to be upgradeable and scalable, accommodating a growing number of tokenholders and increasingly complex proposals.

Conclusion

The implementation of a DAO within the Asset Management Contract is a complex yet vital process. It democratizes the decision-making process, allowing tokenholders to actively participate in the management and legal aspects of the asset. The technical structure needs to balance transparency, security, and legal compliance, ensuring that the DAO operates efficiently and effectively in the blockchain ecosystem.