Generic Fractional Ownership DAO

Existing fractional ownership DAO controls FA2 token transfer operation using fractional ownership voting. However, token management may involve other operations with the token (like putting it for sale on some marketplace or auction contract). The set of operations, that can be performed with the NFT and require fractional ownership control, is not predefined and can be extended in the future.

The proposed generic DAO uses fractional voting to control any generic operation represented by a lambda function. Such lambda can transfer tokens, buy/sell tokens on market place or auction or perform any other generic operation. Strictly speaking, generic fractional ownership DAO is not explicitly tied to any NFTs. Fractional owners can vote on any lambda representing the operation; if they try to transfer some token which is not owned by the DAO, such operation will fail, when the transfer is validated by FA2 contract.

Entities

NFT token - any generic implementation of an FA2 NFT token that can be transferred between any addresses.

Ownership DAO - a contract that can own any generic NFT token and control any operation with owned NFTs using fractional ownership logic.

Ownership token - a fungible FA2 token embedded within the ownership DAO. Token balances are allocated to fractional owners. Such allocations can be changed by transferring ownership tokens.

Fractional owner - an address which owns a fraction of all NFTs managed by the DAO. Fraction of ownership is represented by the balance of the ownership token allocated to the fractional owner. Fractional owner can vote on any operation lambda that manipulates managed NFTs.

Operation lambda - any operation that manipulates owned NFT tokens or DAO itself. Fractional owners can vote on execution of the operation lambda.

DAO operations

Transfer ownership tokens - Since the ownership token managed by the DAO is a regular FA2 fungible token, fractional owners can transfer it using standard FA2 transfer.

Vote on operation lambda - any fractional owner can submit a vote consisting of a lambda (unit -> operation list) and a nonce. The vote weight is proportional to a balance of the ownership token allocated to a fractional owner. Once predefined voting threshold is met, DAO executes the lambda and returns produced operation.

DAO Entry Points

Standard FA2 entry points for ownership token

%transfer

balance_of

update_operators

%vote

%vote {
  lambda: unit -> operation list;
  nonce: nat;
}

Miscellaneous

Providing lambda "templates" or some high-level client API to create and sign lambda functions for generic operations should be considered.

1. NFT transfer and update_operators.
2. Interaction with market place and auction contracts.
3. DAO administration.

Setup and Running The Tests

Build smart-contracts-common TypeScript Package

Switch to shared/typescript directory. Install dependencies and build the package:

yarn install
yarn build

Symlink built package:

yarn link

Start Tezos Sandbox

flextesa/start-sandbox.sh

When running for the first time, it will download sandbox docker image. It may take a few seconds until sandbox is bootstrapped.

Run the Tests

Switch to generic_fractional_dao directory and run the following commands:

yarn install
yarn test

What's Next

• Create tests for the fractional DAO contract

• Create helper Typescript API to generate DAO lambdas for the most common operations

  • Transfer governed token(s)
  • Update operators for governed token(s)
  • Change DAO voting threshold
  • Change DAO voting period

• Migrate DAO contract to minter-sdk