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###### tags: `Haus Party Live`
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# HAUS Party LIVE! Notes: Moloch Mystics (12/9/2021)

Join us for 🎉 Haus Party Live 🎉 every Thursday at 2pm EST on the [DAOhaus Discord](https://discord.gg/daohaus)

## Notes From the Livestream 🎉

> Initial notes shared after Haus Party LIVE! but will be updated afterward with more references and resources.

**Topics**
- [Moloch Mystics](https://gitcoin.co/grants/2918/molochv3-codename-baal)

**Hosts & Guests**
- Felipe, dekanbro, Vanilladelphia.eth, vengist
- Moloch Mystics (Isaac, Spencer, Dekan)

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🌱 Welcome to our metaphorical garden! 🌱

## Notes from the UberHaus Universe
- Raid Guild Season 3 cohort project presentations just wrapped up and there was incredible work being showcased: POAP bot for Discord, content and other addditions for MolochDAO
- FoundationsDAO (DAOhaus starter DAO) exploded out of control after the RabbitHole campaign last month
- Added lots of members and proposals, and our frontend had trouble handling the volume (over 30,000 proposals)
- Over last few days, 1 party tried to drain the entire treasury and unfortunately succeeded in getting half
- Some silver lining: DAO is more activated now and folks are talking about recovery and continuing to build the community
- We're working to build new security and anti-spam measures to help prevent this in the future
- PoolHAUS (LP DAO) wrapped up its first season -- Mission was to pump the liquidity on xDAI and doubled their initial goal
- Season 2 will be on Mainnet!
- Core DAOhaus product team are about to release the roadmap/constitution looking toward the future
- MetaGov: spun up a few weeks ago and are looking into ways that DAOs can talk to each other

## Moloch Mystics & Baal (Moloch v3)
- Isaac, Spencer, and Dekan are part of the mystics and have been working on Moloch contracts with folks across the ecosystem
- Moloch v2 solved limitations found in Moloch v1, and now Moloch v3 (Baal) addresses these and adds new mechanics
- Baal looks to other DAO contracts/patterns for inspiration:
- Gnosis Safe, Moloch DAO contracts, Compound Governor contracts

### What core areas did the Mystics decide to include for Baal?
- Maintain the single contract rule as an architecture principal
- Keep interaction with contract as simple as possible
- Goal for Baal is to maintain ability to work in a functional way with a single contract (although Baal can be extended)
- No need to compose several contracts together to start
- Combined features from v2 into a single contract in v3
- Maintain Rage Quit functionality -- this is a fundamental property of Moloch DAOs
- Moloch v2 had a limitation to only managing ERC20, so Baal has ability to work with more types of tokens
- Still need to whitelist in Baal for security reasons, but DAO can now hold and interact with anything (but is kept in check by the whitelist -- whitelist allows to be added to rage quit)
- Contract can have ragequittable and non-ragequittable bank
- Why have assets that aren't rage quittable?
- If funds are earmarked for someone and the DAO has voted on it, these funds don't need to be ragequittable even though they're held in treasury
- Having buckets of funds for different purposes is appealing and powerful
- Can't have a token that is ragequittable and not -- one or the other per token since it's based on the token whitelisting
- Another update is being able to change starting conditions of DAO
- In v2, once these are set (voting period, grace period, etc.) these can't be updated without upgrading entire DAO into another contract
- In Baal, these settings can be managed by the DAO as needs evolve
- **Transferability**: DAOs can vote on whether they want voting/non-voting shares to be transferrable like tokens
- This can open up experiments: What happens when you create liquidity pools with DAO tokens? Shared loot pools?

### Mental Model for Baal Changes
- Core areas: Added flexibility and more support for a fuller lifecycle of a single DAO within the same contract
- Flexibility and growth as DAO grows and evolves
- Iterative change is key to Moloch DAOs, and Baal framework creates a thin, unopinionated governance layer where humans in the DAO can add socially determined rules about how the DAO operates
- Can iterate quickly and figure out what rules make sense, and then as the DAO evolves can codify and adjust rules over time to match the socially determined rules

### Shares, Loot, and Coin Voting
- Previously have been against this, but DAOs may need to support having transferable shares so now the DAO can choose this in v3
- DAO is *actually an ERC20* and shares are an ERC20, and this opens up lots of options for composability
- **Delegation** is another concept -- shareholders can delegate *voting power* but not *exit power*
- Loot is pure economic, shares are economic and governance, and delegated shares which are pure governance
- DAO shares will show up as an SVG NFT in wallet that can potentially read certain features from the DAO

### What does the upgrade from v2 to v3 look like?
- If you have an existing Moloch v2 DAO, it's likely safe to assume you'll need to take actions to upgrade
- Potential for DAOhaus create a migration tool

## Shamans
- These can be added to Baal DAOs and can have superuser powers over shares and loot
- Can support automated share issuance based on criteria
- This can aid with migration from v2 to v3
- These actions can happen while shortcutting governance since the DAO already decided on the criteria
- Closest parallel is concept of Gnosis Safe modules
- Baal members will vote on enabling a Shaman (external contract with logic about shares and loot)
- There will be audits and governance conversation before Shamans are added and enabled
- Tools like Coordinape and Sourcecred can have a Shaman that rebalances shares based on outcomes from these processes
- Automatically rebalance shares based on outcome
- Onboarding: Can have *yeetable* DAOs
- In v2, membership is very permissioned, but Baal allows for more onboarding options via a Shaman
- Minions in v2 have moved into the core contract and the experimentation has evolved into Shamans
- Shamans play huge role in the added flexibility features in Baal
- Will these new experiments create risk for DAOs?
- This is only a concern if DAOs want to experiment with these features -- Baal allows for creation of a DAO that's effectively identical to a Moloch v2 DAO
- "Net increase in capabilities without sacrificing security"
- Increase the agency of the DAO

## How did the Mystics make decisions about features?
- Where there any features that were excluded?
- Agreed through discussion that Baal should be a standalone "DAO in a box" but also provide tools for folks as DAOs grow
- Baal DAOs can manage safes *and* have their own assets
- Lots of input from several folks -- it's an open source project
- Meet each week and review ideas
- Feature being considered is spam prevention (especially an issue as Moloch DAOs grow in popularity) -- since lots of sidechains/L2s are supported, spam attacks become possibility
- Some architectural and functional areas are still being discussed but are getting close to being locked -> audited

## Additional Questions
- Questions from the audience

### How much do the v3 contracts represent the ideology of the group?
- Contracts are foundation on which communities are built -- how do contributors find that experimental conversations to reach consensus is encoded into contract structure?
- Do contracts represent this / act as a vehicle for the community ideology?
- Standing on the shoulders of giants -- original MolochDAO had a strong game theory component to it with rage quitting, grace periods, etc.
- Have seen community painpoints and requests so this helped guide feature development
- How DAOs mature and evolve over time is another inspiration
- "Stay with the meme as much as possible but add the things we've seen as important"
- How to enable new features while ensuring that game theory remains sound?
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