# NSI DAOs RESEARCH

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#### Table of Contents
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## LICENSE

Copyright (C)  NEETSEC INTERNATIONAL INC.
Permission is granted to copy, distribute and/or modify this document
under the terms of the GNU Free Documentation License, Version 1.3
or any later version published by the Free Software Foundation;
with no Invariant Sections, no Front-Cover Texts, and no Back-Cover Texts.
A copy of the license is included in the section entitled "GNU
Free Documentation License". 

## Why Aragon
Traditional organizations have a vertical hierarchical structure where the authorities are the ones who make the most relevant decisions. However, in many cases these decisions are not usually the best since sometimes the authorities don´t know the real needs of the organization.
Internal factors such as nepotism, corruption, influence peddling or a huge gap between the authorities and the workers are often factors for making decisions based on the interests of a minority and completely forgetting the organisation.
A DAO is a Decentralised Autonomous Organization. It is a new type of organization where there is no hierarchy, decisions are subject to voting on the Blockchain and operations are generally automated through Smart Contracts.
There are different types of DAO frameworks and we will briefly mention the differences of each of them.

Moloch, Colony, DaoStack, Aragon.

**Moloch** invite people to make a tribute, according to which tokens are requested in exchange. It has a mechanism called ***"Reach Quite"*** that allows you to protect people from a 51% attack (from the tyranny of the majority). When a person makes a decision that they do not like, the person can make a redemption of what their tokens would be equivalent to in the common fund to leave the DAO. It is sought that the proposals are accepted by as many people as possible.

**Colony** itself does not believe in voting as it represents a cognitive cost for people. It seeks to bypass the problem of voting by assigning reputation and different subgroups so that there are few representatives of a group of people so that thanks to the merit assigned to the "representatives" they vote for the majority. It's basically like an electoral system in any country where you elect your representatives who will make decisions for you.

**DAOStack** seeks to scale an organisation to large masses. It sets up a system of incentives on voting. It doesn't give governance based on the money you put into the DAO, it uses the reputation system and on this voting there is a "betting" system instead of deciding based on the money you put into the DAO, it is based on voting trends to make it scalable.

**Aragon** is a dApp that allows people to deploy a smart contract from a DAO. It is based on depositing funds that in turn obtain tokens equivalent to the amount deposited and thus whoever has more tokens has more voting power. It is basically a "Tokencracy".

Within all the DAO options that exist, Aragon presents innovative voting methods that adapt to the needs of our organisation. It contains different formats which are very useful to achieve a true and authentic Decentralisation and an authentic and effective Democracy, avoiding the problems of traditional organisations.

## Company
Use transferable tokens to represent ownership stake in your organization. Decisions are made based on stake-weighted voting.

User Guide: help.aragon.org/article/30-create-a-new-company-organization
Source Code: https://github.com/aragon/dao-templates/tree/templates-company-v1.0.0/templates/company
Registry: aragonpm.eth
Network: mumbai

### Template configuration
[](https://i.imgur.com/laCpfWs.png)

### How To Vote and scenarios for the company DAO
The Company DAO use transferable tokens to represent ownership stake in the organization. Decisions are made based on stake-weighted voting.


> Support: Support is the relative percentage of tokens that are required to vote “Yes” for a proposal to be approved. For example, if “Support” is set to 50%, then more than 50% of the tokens used to vote on a proposal must vote “Yes” for it to pass.

> Minimum Approval is the percentage of the total token supply that is required to vote “Yes” on a proposal before it can be approved. For example, if the “Minimum Approval” is set to 20%, then more than 20% of the outstanding token supply must vote “Yes” on a proposal for it to pass.

> Vote Duration is the length of time that the vote will be open for participation. For example, if the Vote Duration is set to 24 hours, then token holders have 24 hours to participate in the vote.

#### There are multiple scenarios:
And this apply also to 5 persons (as required for 2023)
Assuming that a quota of 60% is needed to approve a proposal and the distribution of voting weight per person is: [60: 28, 28, 18, 16, 10]; [minimum quota: p1, p2, p3, p4, p5].
The total weight is 28+28+18+16+10=100. Half of 60 is 30, so the quota must be 30<q<100. Since the quota is 60, and is more than 30 and less than 100, this system is valid.
There are 2 groups of voters, where p1, p2 = 28 votes, which together add up to 56. This group will be called G1. The second group is made up of p3, p4, p5 with 18, 16, 10 respectively and together they have 44 votes. This group will be called G2.
It should be noted that no group alone has enough votes to approve a proposal, so the following cases are presented:

1. Any member presents a new proposal and everything votes **YES**.
Result: The proposal gets **approved**
2. Any member presents a new proposal and one member of G1 group votes **NO**.
Result: The proposal gets **approved**
3. Any member presents a new proposal and one member of G2 group votes **NO**.
Result: It gets **approved**.
4. Any member of G2 presents a proposal, it needs the support of all G2 members and at least one member of G1 to be approved. Or in another way with the simple support of G1 members.
5. Special case of swing member : In this case p3 has the definitive vote (Confirmation / Veto). Any member present a proposal and p1 votes **YES** and p2 votes **NO** (or visceversa); p4, p5 votes **YES**. In this case there is no majority to approve the proposal.
Result: If p3 votes **YES** it gets **approved**.
Result: If p3 votes **NO** it gets **rejected**.

The following scenario (minimum approval) is when from the total amount of DAO tokens it is determined how many have to vote for the proposal to be approved. Because not all voters are going to vote. This means that if there are people who do not vote on a proposal, 30% of the voters are enough for it to be approved.

In general, in this case, only the vote of 2 people are needed and the rest abstain to approve a proposal. There is only one exception.

1. P1 presents a new proposal and just p2 votes **YES** and no one else votes (30<56).
Result: The proposal gets **approved**.
2. P5 presents a new proposal and only votes (**YES**) p3 & p4 (30%<34%).
Result: The proposal gets **approved**.
3. P3 presents a new proposal and just p2 votes **YES** (30%<46%).
Result: The proposal gets **approved**.
4. Special case. P5 presents a new proposal, p1 & p2 abstain and just p3 or p4 votes **YES**.
Result: The proposal gets **rejected**.

In the only extreme case all members of G2 need to vote **YES** on a proposal and G1 abstains for it to be approved.
With the endorsement of any G1 member, it only takes 1 vote (**YES**) from any member and the abstention of the other members for any proposal to be approved.

## Membership
Use a non-transferable token to represent membership. Decisions are made based on one-member-one-vote governance.

User Guide: https://help.aragon.org/article/34-create-a-new-membership-organizationutark.gitbook.io/open-enterprise
Source Code: https://github.com/aragon/dao-templates/tree/templates-membership-v1.0.0/templates/membership
Registry: aragonpm.eth
Network: mumbai

### Template configuration

### How To Vote and scenarios membership DAO
The memebership DAO is where there is a non transferable token, 1 person 1 vote: Considering there are 4 persons (and will be 5 for the foundation)


> Support: Support is the relative percentage of tokens that are required to vote “Yes” for a proposal to be approved. For example, if “Support” is set to 50%, then more than 50% of the tokens used to vote on a proposal must vote “Yes” for it to pass.

> Minimum Approval is the percentage of the total token supply that is required to vote “Yes” on a proposal before it can be approved. For example, if the “Minimum Approval” is set to 20%, then more than 20% of the outstanding token supply must vote “Yes” on a proposal for it to pass.
> Note: Requires at least 2 persons to be approved

> Vote Duration is the length of time that the vote will be open for participation. For example, if the Vote Duration is set to 24 hours, then token holders have 24 hours to participate in the vote.

#### There are multiple scenarios:
And this apply also to 5 persons (as required for 2023)

1. Only one person votes **YES**:
Result: The proposal gets **rejected**
2. Two persons votes **YES**:
Result: It gets **approved**
3. Two persons votes **YES** and one votes **NO**:
Result: The transaction gets **approved**
4. Two persons votes **YES** and two Persones votes **NO**
Result: it will be **rejected**

## Reputation
Use non-transferable tokens to represent reputation. Decisions are made using reputation-weighted voting.

User Guide: help.aragon.org/article/32-create-a-new-reputation-organization
Source Code: https://github.com/aragon/dao-templates/tree/templates-reputation-v1.0.0/templates/reputation
Registry: aragonpm.eth
Network: mumbai

### Template configuration

## Aragon Open Enterprise
A suite of apps for organizations, including project management, bounties, budget planning and rewards.

User Guide: autark.gitbook.io/open-enterprise
Source Code: https://github.com/AutarkLabs/open-enterprise
Registry: aragonpm.eth
Network: mumbai
TestDAO: https://client.aragon.org/#/phase0/

### Template configuration

### Dot Voting

Support: Support is the relative percentage of votes that are required to support a dot voting option for the option to be considered valid. For example, if "Support" is set to 5%, then an option needs more than 5% of the total dot votes to be considered valid.

Minimum participation: Minimum Participation is the minimum percentage of the total token supply that is required to participate in a dot vote for the proposal to be considered valid. For example, if "Minimum Participation" is set to 50%, then more than 50% of the outstanding token supply must have participated in the vote for the vote to be considered valid.

> Note: The support and minimum participation thresholds are strict requirements, such that dot votes will only pass if they achieve participation percentages greater than these thresholds.

## Aragon Dandelion
Facilitate collaboration with an organization that makes it easy for contributors to simply part ways when disagreements occur.

User Guide: https://github.com/1Hive/dandelion-template/blob/master/README.md
Source Code: https://github.com/1hive/dandelion-org
Registry aragonpm.eth
Network: mumbai
TestDAO: https://client.aragon.org/#/phase1/

### Template configuration

### How To Vote and scenarios Dandelion DAO
The dandelion DAO is where there is a non transferable token, 1 person 1 vote: Considering there are 4 persons (and will be 5 for the foundation)


> Support is the relative percentage of tokens that are required to vote “Yes” for a proposal to be approved. For example, if “Support” is set to 50%, then more than 50% of the tokens used to vote on a proposal must vote “Yes” for it to pass.

> Minimum Approval is the percentage of the total token supply that is required to vote “Yes” on a proposal before it can be approved. For example, if the “Minimum Approval” is set to 20%, then more than 20% of the outstanding token supply must vote “Yes” on a proposal for it to pass.

> Vote Duration is the length of time that the vote will be open for participation. For example, if the Vote Duration is set to 24 hours, then tokenholders have 24 hours to participate in the vote.`

> Vote Buffer is the minimum amount of time separating the start time of each new vote, as votes are processed in the sequence they were created.

> Vote Delay is the period of time an approved vote must wait before being executed.


> Token Name is the name you can assign to the token that will be minted when creating this organization.

> Token Symbol or ticker is a shortened name (typically in capital letters) that refers to a token or coin on a trading platform. For example: ANT.

## References

1. https://hackmd.io/A9LNZFTlQsC32gqDw1C7EQ
2. https://hackmd.io/LcwAME8mRgSxBaG1PYcCTg?view
3. https://limechain.tech/blog/dao-voting-mechanisms-explained-2022-guide/
4. https://aragon.org/how-to/set-your-dao-governance
5. https://docs.snapshot.org/