【GovernorAlpha with Proof of Voting NFT】

【Introduction of the GovernorAlpha with Proof of Voting NFT】

• This is the smart contract that incentivize voters (of compound) by using the proof of voting NFTs.
  • Once a token holder (of COMP) execute voting, that token holder receive a NFT as a proof of voting.
  • As a incentive to keep engaging in voting, token holders who has voting NFTs can receive rewards regularly.

• This smart contract try to solve current disadvantage of on-chain voting that:
  • Token holders (of COMP) need to pay GasFee⛽️ for every voting. (In case token holders vote by themself)
  • Small share holders (of COMP) has less voting power than large share holders.
    ↓
    • By distributing rewards via this smart contract like above, all token holders (of COMP) can get benefit to engage in voting even if they are small share holders (of COMP).

• This smart contracts include the customized-smart contracts of the GovernorAlpha.sol of Compound.
  • e.g). The GovernorAlphaWithProofOfVotingNFT.sol inherit the GovernorAlpha.sol of Compound .
    https://github.com/masaun/governorAlpha-with-proof-of-voting-NFT/blob/main/contracts/GovernorAlphaWithProofOfVotingNFT.sol

 

---

【Workflow】

• Workflow
  • ① Create a proposal (from voters to the GovernorAlphaWithProofOfVotingNFT contract).
  • ② Create a proposal (from the GovernorAlphaWithProofOfVotingNFT contract to the GovernorAlpha contract).
    => Workflow of ① and ② above are execute via the GovernorAlphaWithProofOfVotingNFT contract in a single transaction.
  • ③ Cast a vote (from voters to the GovernorAlphaWithProofOfVotingNFT contract).
  • ④ Cast a vote (from the GovernorAlphaWithProofOfVotingNFT contract to the GovernorAlpha contract).
    => Workflow of ③ and ④ above are execute via the GovernorAlphaWithProofOfVotingNFT contract in a single transaction.
  • ⑤ Create a new proof of voting NFT .
  • ⑥ Mint a proof of voting NFT.
  • ⑦ Transfer a proof of voting NFT to voter who is voted.
  • ⑧ Distribute reward tokens (COMP) based on number of a proof of voting NFTs .

    • On the assumption that, 1 proof of voting NFT is given to voter per 1 vote .

    • On the assumption that, default reward distribution amount is 0.01 COMP. https://github.com/masaun/governorAlpha-with-proof-of-voting-NFT/blob/main/contracts/RewardsVault.sol#L20 (※ the reward distribution amount can be changed by using changeDistributionAmount method in the RewardsVault.sol: https://github.com/masaun/governorAlpha-with-proof-of-voting-NFT/blob/main/contracts/RewardsVault.sol#L30-L32 )

    • e.g). If some voter vote 2 different proposal, that voter receive 2 proof of voting NFTs.
      => In case of that, that voter receive 0.02 COMP (=0.01 * 2 NFTs) regulary.

    • Remarks).

      • At the moment, the manual distribution method has been implemented already. ( https://github.com/masaun/governorAlpha-with-proof-of-voting-NFT/blob/main/contracts/RewardsVault.sol#L44-L52 )
      • But, the reqular distribution method has not been implemented yet.

• Diagram of workflow:

 

---

【Remarks】

• Versions:
  • Solidity (Solc): v0.5.16
  • Hardhat: v2.6.1
  • ether.js: v5.4.6
  • web3.js: v1.5.2
  • @openzeppelin/contracts: v2.5.1

 

---

【Setup】

① Install modules

• Install npm modules in the root directory

npm install

② Compile contracts

npm run compile

 

---

【Unit test】

• Scenario test

npm run test:Scenario.test.js

 

---

【Demo】

• Demo video of unit test
  https://youtu.be/pr0gk1njwHk

 

---

【References】

• [Compound.finance]
  • compound-protocol/contracts/Governance: https://github.com/compound-finance/compound-protocol/tree/master/contracts/Governance
  • compound-protocol/tests/Governance: https://github.com/compound-finance/compound-protocol/tree/master/tests/Governance

• [Tally]
  • Tutorial-Deploy-Governance: https://github.com/withtally/Tutorial-Deploy-Governance

• [Prize]:
  • Most Innovative Use Of Compound's Governance Contracts
    https://gitcoin.co/issue/compoundgrants/hackathon/1/100026405