Lyra Union

Lyra Union is a decentralized cooperative that brings full transparency, accountability and adaptability to real world project execution using blockchain and agile methodologies.

The project aims to bring transparency and accountability to real-world project execution by leveraging blockchain technology to create a verifiable and immutable record of every activity. It specifically targets highly regulated industries like pharmaceuticals and med-tech, where compliance and tamper-proof documentation are crucial.

The Three-Token Ecosystem

Lyra Union's architecture is built upon a sophisticated, interconnected three-token system designed to separate identity, governance capital, and daily utility.

1. PRISM (Identity and Governance Rights):

◦ Function: PRISM is a non-transferable NFT on the Hedera blockchain that represents a member's identity and grants exclusive governance rights. Only PRISM holders can create proposals and vote on cooperative matters.

◦ Integration: In the future, PRISM will be linked to WorldCoin, creating a "soul-bound" token for enhanced, cross-chain identity verification.

1. AXIS (Labor Capital and Governance Power):

◦ Function: AXIS represents contributed labor capital and is the primary token for governance decision-making. A member's voting power is proportional to the total value of their AXIS holdings.

◦ Dual Nature: The token has a unique lifecycle. It begins as axis, a standard, freely transferable ERC-20 token used for speculative labor contributions and payments. When a member formally contributes axis to the cooperative, it transitions into AXIS, a restricted ERC-1400 token with governance rights.

◦ Collateralization: AXIS is collateralized by tBTC, which provides stability and a floor price.

1. SPARK (Utility and Medium of Exchange):

◦ Function: SPARK is an ERC-20 token on the Hedera network that serves as the primary medium of exchange within the cooperative. It is used for community rewards, staking and purchasing PRISM tokens.

◦ Collateralization: SPARK exists in two states: uncollateralized for general transactions and collateralized with BTC through an integration with the WorldCoin blockchain. Only collateralized SPARK can be used to purchase PRISM or be contributed to the cooperative as AXIS.

Governance Model: A Decentralized Cooperative

The DAO's governance is built upon a customized version of the HashioDAO framework on the Hedera blockchain and features a sophisticated, value-based voting system.

• Proposal System: Only PRISM holders can create proposals, which are categorized into two types:

1. General Governance Proposals: Open to voting by all PRISM holders.
2. Treasury-Related Proposals: Handled by a smaller, delegated council to ensure active and informed decision-making on financial matters.

• Value-Based Weighted Voting: The voting system is designed to reflect the total value of a member's contribution, not just the number of tokens they hold.

◦ For general governance, voting power is uniform (one vote per PRISM holder).

◦ For project-specific proposals, voting power is weighted proportionally to the total market value of a member's AXIS holdings. This value is a sum of three components: Labor Value, BTC Collateral Value, and Market Utility Value.

Valuing Contribution: The Axis Hour Conversion System

A core innovation is the system for converting axis hours (logged work) into axis/AXIS tokens. This process is designed to be fair, transparent, and resistant to bias.

• 360-Degree Peer Evaluation: After a project, team members conduct anonymous and blind evaluations of their peers' contributions. The process is "blind" because evaluators do not see the hours worked or pay rates of their peers, forcing them to judge based on the quality and impact of the work presented.
• Incentivizing Honesty: To encourage accurate and fair evaluations, 10% of the project's AXIS allocation is reserved for a "boosted reward pool". Evaluators whose votes fall within a certain confidence interval of the final results receive a share of this pool, creating a powerful incentive against strategic or biased voting.
• Stakeholder and Data Inputs: The final token allocation is also adjusted by stakeholder evaluations (based on a formal rubric assessing quality and value) and role-based multipliers, ensuring a holistic measure of contribution.

Real-World Application and Technology Stack

Lyra Union is not just a theoretical framework; it has a clear real-world application and a robust multi-chain technology stack.

• Target Industry: The project is being applied to the pharmaceutical and med-tech sectors. The goal is to use blockchain to document project execution with a verifiable and immutable single source of truth, which is invaluable for regulatory submissions, clinical trials and product development.
• Agile Project Management: The framework integrates with Open Project, an open-source agile project management tool, to track tasks, milestones and deliverables on-chain, ensuring complete transparency for all stakeholders.

We didn't set out to build another DAO. We set out to build a system for verifiable truth and accountable work. The problem isn't a lack of capital, it's the misalignment of capital, labor and governance. We're fixing that by building a decentralized cooperative, a structure that combines the transparency of a DAO with the legal accountability of a cooperative, specifically targeting industries like pharma and med-tech where immutable proof of execution is paramount.

Here’s how we built it, from first principles.

The Architecture: A Multi-Chain System Built for Purpose, Not Hype

We believe in using the right tool for the right job. A single-chain approach is a dogma that limits potential. Our architecture is a pragmatic, multi-chain stack designed for specific functions: Governance, Execution and Value.

1. Hedera for Governance and Identity: This is our business logic layer. We needed a robust, scalable foundation for governance. Instead of building from scratch, we took the battle-tested HashioDAO framework and forked it. This is our command center. Our identity token, PRISM, is a non-transferable NFT minted here, acting as the "soul-bound" key to the cooperative.
2. Ethereum for Execution and Capital: This is our EVM-compatible workhorse. Our utility token (SPARK) and labor capital token (AXIS) live here as ERC-20 and ERC-1400 tokens. This provides access to the deep liquidity and developer familiarity of the Ethereum ecosystem.
3. WorldCoin for Collateral and Sovereign Identity: This is our anchor to intrinsic value and true identity. Post-hackathon, PRISM will integrate with World ID, creating a truly sovereign, cross-chain identity for our members.

The Core Components: An Interconnected System of Value

Our system is built on an elegant separation of concerns, reflected in our three-token design:

• PRISM (The Key): A non-transferable NFT on Hedera that grants exclusive governance rights. You can't buy your way into control; you earn your place. Only PRISM holders can create proposals and vote.
• AXIS (The Stake): This is our most significant innovation. AXIS has a two-stage lifecycle. It begins as axis, a standard, transferable ERC-20 for speculative labor contributions. When a member commits to the cooperative, their axis transitions into AXIS, a restricted ERC-1400 token representing true labor capital with governance weight. This elegantly solves the division between fungible labor and committed stake.
• SPARK (The Fuel): The ERC-20 medium of exchange on Ethereum. Its key feature is a dual state: uncollateralized for general use and collateralized by BTC for high-trust actions like purchasing PRISM or contributing to the cooperative.

Partner Technologies: Leverage Through Integration

We build on the shoulders of giants. We're not building in a vacuum; we are creating a system for verifiable project execution in highly regulated sectors. To do this, we integrated with Open Project, an open-source agile project management tool. This allows us to track tasks, deliverables, and milestones, logging immutable proof of work on the blockchain. This is the bridge from abstract code to real-world value.

The Nitty-Gritty: Our "Hacky" and Notable Innovations

The real magic is in how these pieces connect.

1. Cross-Chain Weighted Voting: This is our technical crown jewel. For general cooperative decisions, it's one PRISM, one vote. But for project-specific proposals, voting power is weighted by the total value of a member's AXIS holdings. To achieve this, our governance contract on Hedera must know a user's AXIS balance on Ethereum. We built a custom Voting/Contribution Module that performs a cross-chain query via the Ethereum Bridge to fetch these balances in real-time. This is a non-trivial piece of engineering that makes our sophisticated, value-based governance model possible.
2. The Effort-to-Axis Conversion Algorithm: Valuing labor is a notoriously hard problem. We designed a novel solution based on game theory. It’s a 360-degree, blind peer evaluation system where members evaluate each other's contributions without seeing hours or pay rates. To ensure honesty, we created a "boosted reward pool" - 10% of the project's AXIS allocation is reserved for evaluators whose votes fall within a confidence interval of the final average, creating a powerful incentive against bias.

• Hedera for fast governance. Hedera runs our governance tokens (PRISM and AXIS), giving us speed, fairness, and agility. Communities can move as fast as startups, without central bottlenecks.
• The cooperative treasury holds Bitcoin, the most resilient money. It grounds the ecosystem, ensuring that whatever happens in the markets, our reserve is unshakable.
• We designed a system where rules, incentives, and rewards flow like a living body. PRISM and AXIS are not coins to trade; they are how trust, value, and voice circulate in the community, making DAO a real organism.