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DISCLAIMER: This codebase is not yet audited

Governance Staking

Governance Staking rewards a DAO's tokenholders for participating in governance. This staking system distributes rewards to tokenholders whose tokens are active in governance. Rewards generally come from the DAO, funded by protocol revenue and/or issuance of the native token from the treasury.

How it works:

  • The DAO decides how stakers can be eligible for rewards. The DAO sets up an oracle to put eligiblity scores onchain.
  • Tokenholders stake their tokens. There is no delay to stake or unstake. Stakers set a claimer for their reward, such as themselves.
  • The DAO sends rewards into its Governance Staking.
  • Governance Staking distributes the rewards over time. Each staker's reward is proportional to their staked balance over time.
  • Claimers can claim their accrued rewards at any time.

Implementation details:

Governance Staking can be deployed as an immutable contract with minimal governance. It does have some admin functions:

  • Adding a new source of rewards
  • Changing the eligibility oracle or the emergency pause guardian
  • Overriding eligibility for a particular address

Staking is compatible with existing ERC20Votes governance tokens. It splits voting power by creating a surrogate contract for each delegate.

Governance Staking distributes rewards over a fixed period of time. That gives everyone a chance to stake and minimizes discontinuities from flash staking.

Governance Staking system

The governance staking system accepts user stake, delegates their voting power, and distributes rewards for eligibile stakers.

stateDiagram-v2
    direction TB

    User --> CUF: Stakes tokens

    state GovernanceStaker {
        state "Key User Functions" as CUF {
            stake --> claimReward
            claimReward --> withdraw
        }

        state "Key State" as KS {
            rewardRate
            deposits
        }

        state "Admin Functions" as CAF {
            setRewardNotifier
            setEarningPowerCalculator
        }
    }

    state DelegationSurrogate {
        state "Per Delegatee" as PD {
            HoldsTokens
            DelegatesVotes
        }
    }

    KS  --> DelegationSurrogate: Holds tokens per delegatee
    DelegationSurrogate --> Delegatee: Delegates voting power
    Admin --> CAF: e.g. governance

    RewardNotifier --> GovernanceStaker: Tells Staker about new rewards
    EarningPowerCalculator --> GovernanceStaker: Calculates eligibility
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Earning Power Calculator

The earning power calculator determines which stakers are eligible for a reward. This implementation uses an oracle. An oracle is needed because eligibility depends on off-chain behavior.

stateDiagram-v2
    direction TB

    state EarningPowerCalculator {
        state "Public Functions" as PF {
            GetEarningPower: getEarningPower()
        }

        state "Score Oracle Functions" as SOF {
            UpdateScore: updateDelegateeScore()
        }

        state "Owner Functions" as OF {
            OverrideScore: overrideDelegateeScore()
            SetScoreLock: setDelegateeScoreLock()
            SetGuardian: setOraclePauseGuardian()
        }

        state "Guardian Functions" as GF {
            SetOracleState: setOracleState()
        }


    }

    ScoreOracle --> SOF: Updates scores
    Owner --> OF: Admin controls
    Guardian --> GF: Emergency pause
    PF --> GovernanceStaker: Returns earning power to staking system
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Development

These contracts were built and tested with care by the team at ScopeLift.

Build and test

This project uses Foundry. Follow these instructions to install it.

Clone the repo.

Set up your .env file

cp .env.template .env
# edit the .env to fill in values

Install dependencies & run tests.

forge install
forge build
forge test

Spec and lint

This project uses scopelint for linting and spec generation. Follow these instructions to install it.

To use scopelint's linting functionality, run:

scopelint check # check formatting
scopelint fmt # apply formatting changes

To use scopelint's spec generation functionality, run:

scopelint spec

This command will use the names of the contract's unit tests to generate a human readable spec. It will list each contract, its constituent functions, and the human readable description of functionality each unit test aims to assert.

License

The code in this repository is licensed under the GNU Affero General Public License unless otherwise indicated.

Copyright (C) 2024 Tally