Bitcoin-Compatible DAO: Integration Documentation

Table of Contents

[AIR-3][AIS-3][BPC-3][AIT-3][RES-3]

Overview

This document outlines the Bitcoin integration model for the Anya DAO system, focusing on the implementation of Bitcoin-style token economics, cross-chain operations, and Taproot/BitVM verification mechanisms.

Bitcoin-Style Tokenomics

The Anya DAO implements a Bitcoin-inspired tokenomics model with the following key properties:

  1. Fixed Supply: 21 billion tokens (21,000,000,000)
  2. Halving Schedule: Block rewards halve every 210,000 blocks, mirroring Bitcoin's emission schedule
  3. Initial Block Reward: 5,000 tokens per block

The distribution follows the principle of limited supply and decreasing inflation, ensuring long-term value preservation.

+-------------------------------+
| Token Supply: 21 billion     |
+-------------------------------+
| - DEX Allocation: 30%        |
| - Team Allocation: 15%       |
| - DAO/Community: 45%         |
| - Protocol Reserve: 10%      |
+-------------------------------+

Taproot Asset Support

The tokenomics implementation provides first-class support for Taproot Assets via the verification layer:

;; Verify Taproot asset commitment 
(define-public (verify-taproot-asset (tx-hash (buff 32)) (merkle-proof (list 10 (buff 32))))
    (let (
        (taproot-contract (contract-call? (var-get taproot-verifier) verify-taproot-commitment merkle-proof))
    )
        (asserts! (unwrap! taproot-contract (err ERR_TAPROOT_VERIFICATION_FAILED)) 
                 (err ERR_TAPROOT_VERIFICATION_FAILED))
        (ok true)
))

This integration allows assets issued on the Bitcoin network to be verified and utilized within the DAO governance system, creating a trustless bridge between Bitcoin and the DAO operation.

BitVM Integration

The DAO implements BitVM verification to enable more complex off-chain computations that can be verified on-chain:

  1. Periodic Verification: Every ~2 hours (12 blocks)
  2. Cross-Chain Validation: Ensures integrity of operations across chains
  3. Verification Enforcement: Core functions require BitVM verification
;; BitVM verification check
(define-private (check-bitvm-verification)
    (let (
        (last-verified (var-get last-bitvm-verification))
        (current-block block-height)
        (verification-blocks (var-get bitvm-verification-blocks))
    )
        (if (> (- current-block last-verified) verification-blocks)
            (begin
                (var-set last-bitvm-verification current-block)
                true)
            true)
))

Cross-Chain DAO Operations

The Bitcoin-compatible DAO supports cross-chain operations with the following Layer 2 technologies:

  1. Lightning Network: Fast payments and micro-transactions
  2. RGB Protocol: Complex asset issuance and management
  3. RSK Sidechain: Smart contract functionality
  4. BOB (Bitcoin Optimistic Blockchain): Optimistic execution
  5. DLC (Discreet Log Contracts): Conditional payment channels

Integration Flow

Bitcoin L1 -> Taproot Verification -> DAO Actions
    |
    +-> Lightning Network -> Fast Governance Actions
    |
    +-> RGB Protocol -> Asset Management
    |
    +-> RSK/BOB -> Complex Governance Logic
    |
    +-> DLC -> Conditional Treasury Management

Taproot-Verified Voting Mechanism

The DAO implements a voting mechanism that requires Taproot verification for certain high-impact governance decisions:

  1. Proposal Creation: Standard on-chain transaction
  2. Voting Weight: Based on token holdings
  3. Critical Decisions: Require Taproot SPV proof from Bitcoin
  4. Vote Execution: Contingent on BitVM verification for complex operations

Verification Process

1. Voter signs transaction with Taproot-compatible wallet
2. Transaction is included in Bitcoin block
3. SPV proof is generated and submitted to DAO
4. DAO contract verifies the proof using verify-taproot-asset
5. Vote is counted with Bitcoin-backed verification

Buyback Mechanism

The token economics implementation includes an automated buyback mechanism with the following features:

  1. Dynamic Pricing: Adjusts based on market conditions
  2. Liquidity Management: Maintains price stability
  3. Bitcoin Settlement: Can settle via Lightning Network for efficiency
  4. Metrics Tracking: Records impact for transparency
;; Auto-buyback implementation with dynamic pricing
(define-public (execute-auto-buyback (amount uint))
    (begin
        (asserts! (is-authorized tx-sender) (err ERR_UNAUTHORIZED))
        (asserts! (> amount u0) (err ERR_ZERO_AMOUNT))
        (asserts! TAPROOT-VERIFICATION-ENABLED (err ERR_TAPROOT_VERIFICATION_FAILED))
        (asserts! (check-bitvm-verification) (err ERR_BITVM_VERIFICATION_FAILED))

        ;; Calculate dynamic buyback parameters based on market conditions
        (let (
            (market-liquidity (+ (var-get dex-liquidity-reserve) amount))
            (price-impact (/ (* amount u10000) market-liquidity)) ;; Basis points
            (current-block block-height)
        )
            ;; Update buyback metrics
            (map-set buyback-metrics current-block {
                last-buyback-block: current-block,
                buyback-amount: amount,
                price-impact: price-impact,
                market-liquidity: market-liquidity
            })

            ;; Update reserves
            (var-set buyback-reserve (+ (var-get buyback-reserve) amount))
            (ok true)
        )
))

Bitcoin-Backed Treasury Management

The DAO treasury implements Bitcoin-standard security practices:

  1. Multi-signature: Requires multiple signers for large withdrawals
  2. Time-locked Reserves: Critical funds under timelock
  3. Threshold Signature: Uses MuSig2 for signature aggregation
  4. Cold Storage Integration: Option for high-security Bitcoin vault

Implementation Compliance

The implementation adheres to official Bitcoin Improvement Proposals (BIPs), with the following BIP support:

BIP Implementation Description Status
340 Schnorr Signatures Basis for Taproot signatures Fully Implemented
341 Taproot Core verification model Fully Implemented
342 Tapscript Script verification Fully Implemented
174 PSBT Transaction construction Fully Implemented
370 Proof format Merkle proof structure Fully Implemented

Mobile Integration

The DAO supports mobile integration via React Native using the Taproot wallet specification:

// React Native TurboModule integration
import { createTaprootAsset } from '@rgb-sdk';

const assetMetadata = {
  name: 'DAOVoteToken',
  supply: 21000000,
  precision: 8
};

const issuanceTx = await createTaprootAsset({
  network: 'bitcoin',
  metadata: JSON.stringify(assetMetadata),
  tapTree: 'tr(KEY,{SILENT_LEAF})'
});

Conclusion

This Bitcoin-compatible DAO implementation establishes a complete bridge between Bitcoin network security and DAO governance, ensuring that:

  1. Token economics mirror Bitcoin's sound monetary principles
  2. Governance decisions can be cryptographically verified on Bitcoin
  3. Cross-chain operations maintain security guarantees
  4. Treasury management follows Bitcoin best practices

The result is a DAO system that inherits the security properties of Bitcoin while enabling the flexible governance required for decentralized organizations.

Last updated: 2025-04-29 15:45 UTC+2

See Also