Executive Summary
This proposal outlines the creation of a new DAO focused on enhancing the scalability, efficiency, and user experience within the Layer 2 ecosystem. Our mission is to leverage Scroll solutions to foster innovation, support emerging projects, and create a more inclusive and decentralized financial system.
Background
The blockchain ecosystem is evolving, with Scroll solutions playing a critical role in scaling networks by handling transactions off the main chain, thus reducing fees and improving transaction speeds. However, the potential of Layer 2 solutions is far from fully realized. Our DAO aims to bridge this gap by supporting projects and initiatives that push the boundaries of what Layer 2 can achieve.
Objectives
- Foster Innovation: Support the development of innovative projects on Layer 2 solutions that can significantly reduce costs and increase transaction speeds without compromising security.
- Community Governance: Create a truly decentralized platform where decisions are made by the community through a fair and transparent voting process.
- Sustainability: Implement a sustainable funding model that ensures long-term growth and stability of the DAO and its supported projects.
- Education and Adoption: Promote the adoption of Layer 2 solutions through educational programs, workshops, and partnerships with existing projects and communities.
Structure
- Governance Token: Introduce a governance token that enables token holders to vote on key decisions, including project funding, strategic direction, and governance policies.
- Funding Mechanism: Establish a treasury funded by a portion of transaction fees, donations, and possibly initial token offerings that will be used to fund approved projects and operational expenses.
- Project Submission and Approval Process: Develop a transparent and efficient process for submitting, reviewing, and approving projects for funding. This will include community discussion forums, proposal vetting by a technical committee, and final approval through community voting.
- Rewards and Incentives: Implement a reward system that incentivizes participation, contribution, and good governance within the DAO.
Technology and Implementation
- Smart Contracts on Layer 2: Deploy smart contracts on the selected Layer 2 solution to handle all aspects of the voting process, including proposal submissions, vote casting, and tallying.
- Result Commitment: After each voting period concludes, the final results will be committed to the Ethereum mainnet. This step ensures the immutability and transparency of the voting outcomes.
- Bridging Mechanisms: Use established bridging mechanisms to securely and efficiently transfer the voting results from Scroll to Ethereum. This includes verifying the integrity of the results before final posting.
Technical Workflow
- Proposal Submission: Proposals are submitted through a Layer 2 smart contract interface (deploy on Scroll), accessible to all DAO members.
- Voting Period: DAO members cast their votes on Scroll network within a predefined period, utilizing the low-cost and high-speed environment.
- Result Tallying: At the end of the voting period, the smart contract automatically tallies the votes.
- Commitment to Ethereum: The final results are then prepared for commitment to the Ethereum mainnet, ensuring they are recorded on a secure and immutable ledger.
- Verification and Finalization: A verification process checks the integrity of the committed results on Ethereum, finalizing the voting outcome.
Benefits
- Cost and Speed: This approach significantly reduces the cost of governance actions and speeds up the voting process, enabling more frequent and dynamic community engagement.
- Scalability: It allows the DAO to scale its operations without being limited by the mainnet’s transaction throughput and fees.
- Security and Transparency: While leveraging the efficiency of Scroll we maintain the security and transparency benefits of Ethereum, ensuring trust and integrity in the DAO’s governance process.
