Governance
Hypernet Governance
Summary
The governance portion of the Hypernet Protocol consists of the Hypertoken contract and its associated Distributed Autonomous Organization (DAO). Hypertoken (token symbol H) is EIP20 compliant and is limited to a total supply of 100,000,000 with 18 decimal places of precision. The DAO is based on OpenZeppelin's Governor library which is itself based on a reference implementation by Compound Finance. Given below is a sequence diagram for the proposal lifecycle.
This particular governance architecture has been adopted by a number of highly influential projects including Uniswap and has proven quite successful in practice at adopting beneficial proposals to protocol upgrades while preventing adversarial attacks.
The Hypernet DAO is used for proposing and vetting (by the token holder community) new Non-Fungible Registries (NFRs), which are deployed through the registry factory contract, and updating various parameters in the protocol itself. Particularly, the DAO can change the length of a proposal's voting period, the minimum proposal threshold, and the voting delay peroid. Additionally, the DAO is the DEFAULT_ADMIN_ROLE of every NFR created by the registry factory (and thus can be used as a recovery mechanism if a REGISTRAR_ROLE_ADMIN loses control of their registry). The DAO is also the REGISTRAR_ROLE_ADMIN, and REGISTRAR of several NFRs that are instrumental for the secure functioning of the Hypernet Protocol ecosystem (thus functioning as a form of token curated registry):
DAO Access and Usage
Users can see all past and present proposals in the official Hypernet launchpad dashboard. Interacting with proposals (i.e. creating a proposal, casting a vote, etc.) requires that the active account first posses a Hypernet Profile Non-Fungible Identity. Creating a new proposal requires that the initiating account posses an amount of Hypertoken equivalent to _proposalThreshold which is a public variable stored by the DAO contract (the default threshold is 1,000,000 H). For a given active proposal, users may vote for, against, or abstain. Each Hypertoken in an account's balance counts as 1 vote (i.e. 100 Hypertoken = 100 votes). A proposal will be defeated if quorum is not reached (quorum for the Hypernet DAO is 4% of the total token supply).
Treasury Management
The Hypernet DAO timelock contract is the default burnAddress of all DAO-managed registries. The burn fee from token-based registration from all of these registries is sent to the timelock contract and its utilization is controlled by the token-holder community.
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