| Version | Reference | Features | Status |
|---|---|---|---|
| v0 | Forum Link | Pre-determined disbursement and BREAD token weighted voting disbursement | Building |
| v1 | Multi-token weighted voting | Drafting |
The Breadchain Network is funded by users baking BREAD by giving xDAI which is then converted into sDAI (a yield bearing asset) which BREAD holders can then vote on how the yield is distributed among Breadchain member projects. In this way, our yield governance is similar to a credit union, except in this credit union we make it completely transparent where people are able to vote in 30-day cycles where to put the yield generated towards and can still use their money through BREAD. Since the general ethos of the Breadchain Network is geared towards post-capitalism, it’s like a post-capitalist credit union that uses participatory budgeting.
Participatory budgeting is a common method for progressive municipalities, cooperatives and similarly democratic organizations to decide how to split up a budget by giving voice to members of the community. Here our community members are BREAD token holders. Our post-capitalist values are also embedded in the smart contracts themselves that facilitate the voting and movement of capital which is why we would describe it as a solidarity primitive. You can also find a more concrete example of how the results can look like in our system here.
Note that the exact technical specifications for how this all works can be found in the Github.
For v0, we use PowerPool to combine a 1) pre-determined disbursement with 2) token voting at a 50:50 ratio of the total disbursement. 1 is meant to be the most direct way of not allowing the influence of capital to determine everything and 2 is meant to help encourage the creation of BREAD among supporters of each project. A monthly automated disbursement based on the combination of these 2 methods would be our goal using PowerPool.
This would make a more clear incentive for why projects would want to become a Breadchain project and give an opening for more people to take part in the project as supporters. While this arrangement can likely be improved, we believe it is a good start for a v0 and leaves enough room for future improvements.
Half of the disbursed funds will be evenly split among 5 entities:
The other half of the yield disbursement would be determined through simple token voting where one BREAD is equal to one vote. Based on a snapshot of BREAD holders, each month will be a vote for holders to vote on how they would like the funds to be disbursed. BREAD holders could distribute 100 percentage points among all of the listed projects to disburse their yield.
While this on its own would not be ideal, it does help incentivize BREAD baking by those who want to support specific projects or want to take part in that process. We are also protected by having a limited set of projects that can be voted on so that there is not a way for someone to steal half of our yield by baking a lot of BREAD for a month and then leaving.