FairnessDAO

FairnessDAO is a DAO framework that uses time as a voting weight factor, reducing inequalities between investors over time. With FairnessDAO, governance is not monetized and only the most invested actors will have a significant voting weight in future decisions.

In this first MVP, to make decisions, each investor will be able to stake $FAIR tokens to obtain $VeFAIR tokens. The $VeFAIR will be non-transferable and will allow hodlers to submit and vote on proposals.

An economic mechanism will encourage citizen investors to stake their FAIR as long as possible in order to have a maximum voting weight and another mechanism will reward voters.

In order to introduce justice among citizens, those who vote the most and stake the longest will have more and more voting weight in the DAO.

This framework is open to everyone, and any token holder can create a FairnessDAO of its own, with its own targeted ERC-20 token. This allows ERC-20 tokens with no existing governance to quickly create one, with a different model than the ones we are used to.

The project uses a set of contracts as the main DAO protocol, with the vesting and voting process. The vesting token distribution is based on the following formula: V = X x Y x Z X: Amount of locked tokens from the vesting. Y: Time between now and the last claim timestamp. Z: Reward delta, updated each p period.

This creates a better economy between users of the governance since voting weight cannot be bought directly. Even a whale with a high X value won't be able to manipulate the governance since it will be required of him to stake long enough to claim a strong voting weight compared to others in the governance that may have a lower X value, but a higher Y value.

Each time a user wants to submit a proposal, in order to avoid proposal spamming, the proposer will be required to burn 1/1000th of the total supply from his wallet. This reduces his voting power and adds a requirement for a minimum of voting tokens to be earned over time. The submitted proposal is stored on IPFS and the IPFS hash will be stored on-chain, inside the FairnessDAO Proposal Registry smart contract to allow anyone to verify its content.

In addition, if the proposal passes a quorum, a reward bonus is given each time a user votes. The reward formula is the following: Rewards = X / Y X: Total supply of voting tokens used on this proposal. Y: The total amount of unique voter addresses.

However, the reward gets a boost if the latter is claimed by the original proposal submitter; Rewards = A x Z + X / Y A: Amount of burnt tokens during submission. Z: Reward delta, updated each p period. X: Total supply of voting tokens used on this proposal. Y: The total amount of unique voter addresses.

Two types of proposals are available on the MVP;

• Soft -> with a voting period of 14 days.
• Hard -> with a voting period of 28 days.

Both impact the two quorum parameters required to get a proposal validated by the governance:

• QA -> Quorum of Addresses; The minimum share amount of unique voter addresses out of the total amount of hodlers of voting tokens.
• QT -> Quorum of Tokens; The minimum share amount of voting tokens used for voting on the proposal out of the total supply of voting tokens.

To simplify the use of the framework to the public, a FairnessDAO Factory has been deployed on Rinkeby, Mumbai, and Optimism Goerli to allow anyone to try this governance mechanism.

The front end is made in react and will read and interact directly with the smart contract. It is restricted to the MVP $FAIR and $VeFAIR ERC-20 tokens on Rinkeby but can be easily updated to work on any other EVM network with any ERC-20 token.

Additionally, to simplify the address management of the governance, each deployed FairnessDAO is eligible for an ENS subdomain claim. The fairnessDAO.eth subdomain will be registered for the proposal registry contract and will allow the governance to be easily retrieved by the governance members.