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DAO

The DAO can support protocol operations through governance-controlled revenue mechanisms.

Revenue paths (proposed)​

1) Frontend fee with creator kickbacks​

Per-transaction frontend fee path:

  • A router contract charges a small fee in native token (example target: 0.00001 ETH per transaction).
  • The collected fee is forwarded to an onchain fee splitter.
  • The fee splitter is linked to DappRegistry so distribution can follow currently approved vapp metadata.
  • Split configuration is updated through governance, in the same proposal lifecycle as app/registry updates.
  • The splitter can route shares to DAO treasury and creator recipients, with creator kickbacks based on contribution policy.

2) Subscription NFT (ETH-paid) with fee bypass​

Subscription path:

  • User pays ETH to mint or maintain a subscription NFT.
  • The client checks whether the connected wallet holds a valid subscription NFT.
  • If present, frontend fee is not added for that wallet.
  • If absent, standard frontend fee path applies.

Governance and policy boundaries​

  • Proposing governance actions requires minimum delegated VFI voting power (current default: 100 BPS / 1% via MinimumDelegationRequirement).
  • Fee rates, split percentages, and recipient sets should be DAO-controlled parameters.
  • Contribution-to-kickback rules should be explicit, auditable, and versioned through governance proposals.
  • Subscription NFT validity rules (duration, renewal, revocation) should be contract-defined and governance-updatable where appropriate.
  • Current governance contracts support approval/rejection outcomes through Governor voting and execution flow; proposal slashing is not currently implemented.
  • Stake-and-slash proposal mechanics are being explored as a potential future mechanism, but are not finalized.

Implementation notes​

  • Keep fee logic onchain and deterministic to minimize off-chain trust.
  • Emit events for fee collection and split distribution so indexers can produce transparent accounting.
  • Align client behavior with onchain policy: client-side checks should only gate UX, not replace contract enforcement.