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

DAO System Guide

Table of Contents

Compliance Framework

This guide adheres to BPC-3 protocol standards and implements DAO-4 institutional governance requirements.

Cross-Chain Execution

  • Bitcoin SPV Proof Verification (BPC-3 compliant)
  • RSK Bridge Integration with Taproot support
  • Legal Compliance Wrappers (DAO-4 standard)

Overview

The Anya DAO (Decentralized Autonomous Organization) is the governance layer for the Anya Core Platform, enabling token holders to collectively manage the protocol, treasury, and ecosystem development.

Governance Token

The Anya Governance Token (AGT) is the core utility and governance token of the platform.

Token Economics

  • Total Supply: 21,000,000,000 AGT (Fixed)
  • Initial Block Reward: 10,000 AGT
  • Emission Schedule: Adaptive Bitcoin-inspired halving mechanism
  • Minimum halving interval: 105,000 blocks
  • Halving controlled by governance parameters

Token Distribution

The AGT token is distributed according to the following model:

  • 40% Protocol Treasury (8.4B AGT)
  • 20% Strategic Reserves (BIP-341 compliant)

  • 20% Ecosystem Development (DAO-4 managed)

  • 30% Liquidity Provision (6.3B AGT)

  • 20% Initial DEX Liquidity (Taproot-enabled)

  • 10% Ongoing Liquidity Mining (BIP-174 PSBT)

  • 15% Team & Development (3.15B AGT)

  • 5-year vesting with 2-year cliff

  • Performance milestones (BPC-3 verified)

  • 10% Community Incentives (2.1B AGT)

  • Governance participation rewards

  • Protocol usage incentives

  • 5% Strategic Partners (1.05B AGT)

  • 3-year vesting schedule

For detailed tokenomics information, see TOKENOMICS_SYSTEM.md

Governance Framework

Proposal Types

The DAO supports multiple proposal types, each with specific requirements and voting parameters:

  1. Protocol Upgrades
  2. Contract upgrades
  3. Parameter changes

  4. Feature additions/removals

  5. Treasury Management

  6. Fund allocations
  7. Investment decisions

  8. Protocol-owned liquidity operations

  9. Emission Schedule Adjustments

  10. Halving interval modifications
  11. Block reward changes

  12. Special emission events

  13. Community Grants

  14. Developer grants
  15. Marketing initiatives

  16. Community projects

  17. Governance System Changes

  18. Voting mechanism updates
  19. Proposal threshold adjustments
  20. Quorum requirement changes

Proposal Process

  1. Submission Phase
  2. Minimum 100 AGT to submit a proposal
  3. 3-day discussion period

  4. Technical feasibility review

  5. Voting Phase

  6. 10-day duration (BPC-3 minimum)
  7. 65% participation threshold (DAO-4 standard)
  8. Taproot voting proofs (BIP-341)

  9. PSBT transaction validation (BIP-174)

  10. Execution Phase

  11. 2-day timelock before execution
  12. Automatic execution for approved proposals
  13. Multi-signature security for treasury operations

Voting Power

Voting power in the DAO is determined by:

  • AGT token holdings
  • Governance participation history
  • Reputation score (based on contribution)

Treasury Management

The DAO treasury is managed according to the following principles:

Treasury Composition

  • Strategic Reserves: 15% minimum of circulating supply
  • Protocol-Owned Liquidity: Minimum 15% of DEX allocation
  • Ecosystem Fund: Grants and investments
  • Operations Fund: Protocol development and maintenance

Treasury Operations

The DAO can authorize various treasury operations:

  1. Liquidity Management
  2. Adding/removing DEX liquidity
  3. Fee tier adjustments

  4. Rebalancing across venues

  5. Buyback and Burn

  6. Token buybacks from market
  7. Burning mechanisms

  8. Supply adjustment operations

  9. Strategic Investments

  10. Protocol investments
  11. Ecosystem funding

  12. Partnership development

  13. Reserve Management

  14. Asset diversification
  15. Yield generation
  16. Risk management

Treasury Guards

To ensure responsible treasury management:

  • Spending Limits: Tiered approval requirements based on amount
  • Circuit Breakers: Emergency pause during extreme conditions
  • Time Locks: Graduated waiting periods based on impact
  • Audits: Quarterly independent audits

Implementation Architecture

The DAO is implemented using:

On-Chain Components

  • Governance Contract: Main DAO contract
  • Treasury Contract: Treasury management
  • Token Contract: AGT token implementation
  • Proposal Registry: Tracks all proposals

Off-Chain Components

  • DAO Dashboard: Web interface for governance
  • Analytics Suite: Governance metrics and insights
  • Notification System: Alerts for proposals and votes
  • Discussion Forum: Proposal discussion platform

Security Measures

The DAO implements multiple security layers:

  • Multi-Signature Requirements: For critical operations
  • Time Locks: Delayed execution of significant changes
  • Security Council: Emergency response capability
  • Formal Verification: Of all governance contracts
  • Bug Bounty Program: For vulnerability reporting
  • Taproot Audits: Quarterly Tapscript verification
  • PSBT Validation: Hardware wallet integration checks
  • BIP Compliance: Automated protocol checks
  • Weekly BIP-341 signature validation
  • Daily BIP-174 transaction audits

Getting Started

Participation Guide

  1. Acquire AGT tokens
  2. DEX trading
  3. Liquidity provision

  4. Community contributions

  5. Delegate Voting Power

  6. Self-delegation
  7. Delegate to representatives

  8. Split delegation

  9. Create Proposals

  10. Proposal templates
  11. Documentation requirements

  12. Technical specifications

  13. Vote on Proposals

  14. Voting interface
  15. Voting strategies
  16. Vote timing considerations

Technical Reference

Contract Addresses

  • DAO Contract: [CONTRACT_ADDRESS]
  • Treasury Contract: [CONTRACT_ADDRESS]
  • Token Contract: [CONTRACT_ADDRESS]

API Integration

// Example: Creating a proposal
const proposal = await anyaDAO.createProposal({
  title: "Adjust Emission Schedule",
  description: "Modify halving interval to 115,000 blocks",
  actions: [
    {
      contract: "emission",
      method: "setHalvingInterval",
      params: ["115000"]
    }
  ]
});

Governance Dashboard

The DAO dashboard is available at https://dao.anya-core.org and provides:

  • Active proposal overview
  • Voting interface
  • Treasury statistics
  • Governance analytics
  • Personal voting history
  • Delegation management

Version History

  • v2.0.0: Updated tokenomics model with adaptive emission and strategic distribution
  • v1.0.0: Initial DAO implementation with fixed Bitcoin-style emission

Additional Resources

Key Features

  • Bitcoin-Style Tokenomics: 21 billion token supply with halving mechanism
  • Strategic Distribution: 30% DEX, 15% development team, 55% DAO/community
  • Enhanced Governance: Advanced proposal creation, voting, and execution
  • DEX Integration: Built-in liquidity and trading capabilities
  • Comprehensive Logging: Complete transparency for all operations
  • Modular Architecture: Clear separation of interfaces and implementations

Documentation Map

This project includes several documents covering different aspects of the DAO system:

Document Purpose Location
DAO Index Central entry point to all DAO documentation docs/DAO_INDEX.md
DAO README Overview of setup and usage dao/README.md
DAO System Map Architectural overview docs/DAO_SYSTEM_MAP.md
Tokenomics System Token economics architecture docs/TOKENOMICS_SYSTEM.md
Implementation Milestones Progress tracking and roadmap docs/IMPLEMENTATION_MILESTONES.md
This Guide Comprehensive consolidated documentation docs/DAO_SYSTEM_GUIDE.md

System Architecture

Component Architecture

The DAO system consists of the following components:

anya-core/
├── dao/
│   ├── core/
│   │   └── dao-core.clar        # Enhanced Core DAO implementation
│   ├── traits/
│   │   ├── dao-trait.clar       # DAO trait interface
│   │   └── dex-integration-trait.clar # DEX integration interface
│   ├── extensions/
│   │   └── token-economics.clar # Advanced token economics implementation
│   └── tests/
│       └── dao-core-test.clar   # Test script for DAO core
└── src/
    └── contracts/
        ├── dao.clar             # Main DAO contract with full governance
        ├── governance_token.clar # Governance token contract
        ├── bitcoin-issuance.clar # Bitcoin-style token issuance
        └── dex-adapter.clar     # DEX integration for liquidity

Component Relationships

The components interact with each other according to the following diagram:

┌─────────────────┐     implements     ┌─────────────────┐
│   dao-trait.clar │◄─────────────────┤  dao-core.clar  │
└────────┬────────┘                   └────────▲────────┘
         │                                     │
         │                                     │
         │ uses trait                          │ calls
         │                                     │
         ▼                                     │
┌─────────────────┐     interacts     ┌─────────────────┐
│    dao.clar     │◄─────────────────►│ governance_token│
└─────────┬───────┘                   └────────▲────────┘
          │                                    │
          │ controls                           │ mints
          ▼                                    │
┌─────────────────┐     provides      ┌─────────────────┐
│   dex-adapter   │◄─────────────────┤bitcoin-issuance │
└─────────────────┘     liquidity     └─────────────────┘
       ▲                                    ▲
       │           ┌─────────────────┐      │
       └───────────┤token-economics ├──────┘
                   └─────────────────┘
                         guides

Bitcoin-Style Tokenomics

Issuance Model

The Anya governance token (AGT) follows a Bitcoin-style issuance model:

  • Total Supply: 21 billion AGT (with 8 decimal places)
  • Initial Block Reward: 5,000 AGT per block (higher than Bitcoin)
  • Halving Interval: Every 210,000 blocks (~4 years with 10-minute blocks)
  • Halving Schedule:
  • First 210,000 blocks: 5,000 AGT per block
  • Next 210,000 blocks: 2,500 AGT per block
  • Next 210,000 blocks: 1,250 AGT per block
  • And so on...

Distribution Allocation

Each block reward is distributed strategically:

  • DEX Allocation: 35% (aligned with liquidity provision)
  • DAO/Community: 50% (aligned with liquidity provision)
  • Network Security Fund: 15%

Developer Team Allocation

The team allocation is further distributed:

  • Top Performer: 30% of the team allocation
  • Base Distribution: 50% evenly split
  • Performance Bonus Pool: 20%

Governance System

Proposal Lifecycle

  1. Creation: Any token holder with sufficient balance can submit a proposal
  2. Voting Period: Token holders vote on the proposal (voting weight = token balance)
  3. Execution Delay: Successful proposals go through a timelock period
  4. Execution: Approved proposals are executed after the timelock

Proposal Types

  • Parameter Changes: Modify DAO settings
  • Token Actions: Token distribution or allocation changes
  • DEX Actions: Adjust DEX parameters or execute buybacks
  • Administrative Actions: Add/remove administrators

Voting Mechanism

  • Threshold: Minimum token balance needed to submit a proposal (100 AGT default)
  • Quorum: Minimum participation required for valid vote (30% default)
  • Approval: Percentage needed to pass a proposal (60% default)
  • Taproot Voting: Schnorr signature aggregation
  • Cross-Chain Validation: SPV proofs for Bitcoin-based votes
  • Privacy Option: CoinJoin-style vote mixing

DEX Integration

Key Features

  1. Liquidity Provision
  2. DEX receives 30% of all token issuance
  3. Users can provide STX/AGT liquidity to earn trading fees

  4. Liquidity providers receive LP tokens representing their share

  5. Trading Operations

  6. Swap AGT for STX and vice versa
  7. Constant product market maker formula (x * y = k)

  8. Fee percentage: 0.3% by default (configurable)

  9. Buyback Mechanism

  10. DAO can execute buybacks through the DEX

  11. Supports DAO-controlled market stabilization

  12. Price Oracle

  13. Provides reliable on-chain price information
  14. Useful for other contracts needing AGT price data

Setup and Usage

Prerequisites

Installation

If you don't have Clarinet installed, you can use the provided installation script:

## On Windows
.\scripts\install-clarinet.ps1

Verifying Configuration

To ensure all contracts are properly configured in Clarinet.toml:

## On Windows
.\scripts\verify-clarinet-config.ps1

Running Tests

With Clarinet installed:

## Navigate to the anya-core directory
cd anya-core

## Check contract syntax
clarinet check

## Run tests
clarinet test

Without Clarinet (simulation only):

## On Windows
.\scripts\run-dao-tests.ps1

Contract Usage Examples

Integrating with the DAO

;; Import the DAO trait
(use-trait dao-trait .dao-trait.dao-trait)

;; Function that uses the DAO
(define-public (submit-to-dao (dao-contract <dao-trait>) (title (string-ascii 256)) (description (string-utf8 4096)) (duration uint))
    (contract-call? dao-contract submit-proposal title description duration)
)

Creating a Proposal

;; Call the DAO contract to create a proposal
(contract-call? .dao-core submit-proposal "My Proposal" "This is a proposal description" u10080)

Interacting with Token Economics

;; Get current distribution phase
(contract-call? .token-economics get-current-phase)

;; Check available tokens to mint
(contract-call? .bitcoin-issuance get-available-to-mint)

DEX Integration Example

;; Get token price from DEX
(contract-call? .dex-adapter get-token-price)

;; Execute buyback through DAO
(contract-call? .dao-core execute-buyback u1000)

Administrative Functions

;; Update DAO settings (admin only)
(contract-call? .dao-core update-proposal-threshold u200)

;; Add an administrator (admin only)
(contract-call? .dao-core add-administrator 'ST2PQHQKV0RJXZFY1DGX8MNSNYVE3VGZJSRTPGZGM)

Implementation Status

Current implementation status:

  • ✅ Core architecture and interfaces (BIP-341 compliant)
  • ✅ Enhanced Bitcoin-style issuance model
  • ✅ DEX integration (Taproot-enabled)
  • 🔄 Advanced governance features (In Testing)

For detailed progress, see the Implementation Milestones document.

Bitcoin Improvement Proposals (BIPs) Compliance

This implementation follows official Bitcoin Improvement Proposals (BIPs) requirements:

  1. Protocol Adherence
  2. Bitcoin-style issuance with halving schedule
  3. Uses Clarity's trait system for interface consistency
  4. Maintains decentralized governance principles

  5. Comprehensive error handling and validation

  6. Privacy-Preserving Architecture

  7. Constant product market maker formula for DEX
  8. Vote delegation through proxy patterns
  9. Private proposal submission options

  10. Secure admin controls with proper authorization checks

  11. Asset Management Standards

  12. Governance token uses SIP-010 standard
  13. Proper token integration with mint functions
  14. Token balance validation for proposal submission

  15. Strategic distribution for liquidity and governance

  16. Security Measures

  17. Admin-only access for sensitive operations
  18. Multi-level validation for all operations
  19. Comprehensive logging for auditing
  20. Clear separation of responsibilities between components

Future Development

Planned enhancements to the DAO system include:

  • DLC Oracle Integration: Using oracle attestations for voting
  • Cross-Chain Governance: Integration with RSK and Liquid
  • Web5 Identity: Using decentralized identities for member registration
  • Enhanced Voting: Quadratic voting and delegation options
  • Advanced Execution: Automatic execution of approved proposals
  • Extended DEX Features: Multi-pair trading and dynamic fee adjustment

Contributing

When extending or modifying the DAO system:

  1. All new components should implement or use the appropriate traits
  2. Maintain the file structure with traits in traits/, implementations in core/, and extensions in extensions/
  3. Add appropriate tests in the tests/ directory
  4. Ensure all operations are properly logged for transparency
  5. Update the documentation to reflect your changes
  6. Ensure compatibility with the Bitcoin-style tokenomics model

Reference Information

Tokenomics Parameters

Parameter Value Description
Total Supply 21,000,000,000 AGT Maximum supply cap
Initial Block Reward 5,000 AGT Block reward with 8 decimal places
Halving Interval 210,000 blocks ~4 years with 10-minute blocks
DEX Allocation 35% Percentage of block rewards allocated to DEX
DAO Allocation 50% Percentage of block rewards allocated to DAO/community
DEX Fee 0.3% Trading fee percentage
Proposal Threshold 100 AGT Minimum tokens to submit a proposal
Voting Threshold 60% Percentage needed to pass a proposal
Quorum 30% Minimum participation required

Useful Commands

## Check DAO core syntax
clarinet check dao/core/dao-core.clar

## Run a specific test
clarinet test dao/tests/dao-core-test.clar

## Deploy to testnet
clarinet deploy --testnet

## Generate documentation
clarinet docs

Cross-Chain Execution

Cross-Chain Governance (DAO-4)

  • Bitcoin SPV Proof Verification (BPC-3)
  • RSK Bridge Integration with Taproot
  • Legal Compliance Wrappers (AIS-3)

Bitcoin Protocol Compliance

BIP-341 Implementation

  • Taproot-enabled treasury operations
  • Schnorr signature aggregation for votes
  • MAST contracts for proposal execution

BIP-174 Compliance

  • PSBT integration for cross-chain governance
  • Multi-sig transaction templates
  • Hardware wallet signing support

Validation Workflows

  1. BIP-341 Validation Cycle: Proposal → Schnorr Sig → MAST Commitment → Execution

  2. BIP-174 PSBT Flow: Construction → Validation → Signing → Broadcast

  3. BIP-174 PSBT Flow: Construction → Validation → Signing → Broadcast

See Also