TL;DR: Thanks to the Budget Proposal initiative, the operations of DAO are 10x more efficient on ADAM. In a graphical user interface, members can propose and approve the different kinds of usage of a budget.
Say goodbye to voting on every budget.
DAO members typically vote on each transaction individually. However, in the actual world, businesses rarely authorise each payment separately and instead state everything in a budget plan all at once. As a result, ADAM employs a similar technique to increase the DAOs’ execution efficiency. Consequently, DAO members draft and approve budget proposals. Within the time frame specified in the proposal as accepted, the designated Executor may begin using the approved budget. A single Budget may contain multiple things. With this Budget, DAO wouldn’t have to vote every time but rather every month, every three months, or even every year. Contributors can represent the DAO in the best possible way.
Sample Budget Proposal
Few people can profit from the Budget Proposal’s advantages if coding is required, because it is in fact a smart contract that prevents rug pulling. DAO members can design and configure the budget proposal using the graphical user interface utilising ADAM’s modular architecture. You can alter the metrics inside the templates for Budget Proposals, then submit it for voting.
There are no default outflow transactions.
The current norm in the market is using the multi-signature approach, which can allow for an outflow of tokens anytime by the DAO treasury controllers. However, such a strategy can increase the chance of rug pulls. By default, no outflow or exchange transactions from the treasury are permitted on ADAM. The sole entrance into a DAO’s transactions is through an approved budget, and this rule is carefully upheld by the members’ votes.
Start a Budget Proposal
The templates provided on ADAM can allow any member in the DAO to start a proposal. On the Budget Proposal end, on ADAM there are various options and parameters are allowed to configure, including but not limited to:
- Transaction type (Pure outflow/swapping)
- Transaction destination (e.g. Uniswap)
- Outflow token type (e.g. ETH, USDT, USDC)
- Inflow token type
- Maximum amount (maximum amount of tokens to be used)
- Usage limit (maximum number of execution of the proposal)
- Usage period (an indefinite/specific period for spending the budget)
- Executor (who can execute the transaction)
- Approver (who can approve the budget/how many approvals needed)
Despite not having coding knowledge, ADAM’s interface allows anyone to raise budget proposals without any coding knowledge. For example, imagine we have a TestDAO that wants to swap 10% of their ETH with another token within a given period. To execute this, a member can then create a Proposal, and through the Uniswap function on ADAM, accompanied by the parameters of times of usage (Unlimited or Not), the Specified period of time, and also who is chosen as the executor as shown below.
The trader can then use the allotted ETH to execute trades on behalf of the DAO without seeking approval each time after the Budget has received enough votes to pass. A smart contract, however, will prevent the trader from spending more than the allotted 10%, using tokens other than ETH, or spending beyond a certain usage window.
Enforce Budget Approved
The locations where Executors conduct trades and trading are DAO treasuries on ADAM. The respective Approved Budget will be matched by the Treasury prior to each action. To safeguard the treasury, it will immediately decline and cancel the transaction if there is any mismatch between them.
In a nutshell, the results of your vote determine what will actually occur.
The Approved Budget effort is just one step in the road to protecting DAOs’ treasuries. In order to more effectively combat frauds and rug pulls, ADAM hopes to strengthen the DAO as a whole. Stay tuned for our upcoming article – DAO 2.0: Fully On-chain, from Proposal to Execution, to learn more.