KalyDAO

A decentralized governance system for Kaly Chain, enabling on-chain governance using native KLC token for voting power.

Features

• Native Token Governance: Use the KLC native token for voting by wrapping it
• Secure Treasury Management: Store and manage funds controlled by governance
• Transparent Governance Process: Propose, vote, queue, and execute changes on-chain
• Timelock Security: Every governance action requires a time delay for security

Installation

1. Clone this repo:

git clone https://github.com/KalyCoinProject/dao-contracts
cd dao-contracts

2. Install dependencies:

yarn
# or
npm i 

3. Run the test suite:

yarn hardhat test
# or
npx hardhat test

4. View test coverage:

yarn hardhat coverage
# or
npx hardhat coverage

Test Suite Details

Our test suite verifies all aspects of the DAO functionality:

1. GovernanceToken Tests

• Deposit/Withdraw: Verifies users can wrap native KLC to get gKLC tokens and unwrap them back
• Voting Power: Confirms governance tokens provide voting power after delegation
• Token Transfers: Tests that token balances update correctly after transfers

2. TreasuryVault Tests

• Ownership Control: Only governance can access treasury functions
• Fund Management: Tests sending and receiving both native tokens and ERC20 tokens
• Proposal Execution: Verifies treasury operations can be executed through governance

3. Governance Process Tests

• Full Governance Flow: Tests the entire proposal → vote → queue → execute pipeline
• Financial Transactions: Validates governance can manage treasury assets
• Timelock Protection: Ensures proper delays between approval and execution

Deployment to Testnet

1. Add a .env file with the same contents of .env.example, but replaced with your variables.

⚠️ WARNING ⚠️

DO NOT PUSH YOUR PRIVATE_KEY TO GITHUB

2. Deploy to a testnet:

npx hardhat deploy --network [NETWORK_NAME]

Usage Guide

On-Chain Governance Process

Here's what happens in our DAO system:

1. Token Setup: We deploy a Governance Token (gKLC) that wraps the native KLC token to enable voting

   • Users deposit native KLC to receive gKLC with voting power
   • Users can withdraw their KLC at any time by burning gKLC

2. Timelock Deployment: We deploy a Timelock contract that adds security by enforcing delays

   • The timelock is the contract that will handle all the money, ownerships, etc
   • Provides a buffer period for users to review proposed changes

3. Governance Contract: We deploy our Governance contract to handle proposals and voting

   • The Governance contract manages proposals and voting, but the Timelock executes!
   • Uses the popular OpenZeppelin Governor framework

4. Treasury Management: We deploy a Treasury Vault, owned by the governance process

   • Can receive and send both native KLC and any ERC20 tokens
   • All operations require passing a governance proposal

5. Proposal Lifecycle:

   • Propose: Anyone with enough voting power can propose actions
   • Vote: Token holders vote during the voting period
   • Queue: Approved proposals are queued in the timelock
   • Execute: After the timelock delay, the proposal can be executed

Manual Testing on Local Network

You can manually test the governance flow:

1. Setup local blockchain:

yarn hardhat node

2. Propose a new value to be added to our Treasury contract:

yarn hardhat run scripts/propose.ts --network localhost

3. Vote on that proposal:

yarn hardhat run scripts/vote.ts --network localhost

4. Queue & Execute proposal:

yarn hardhat run scripts/queue-and-execute.ts --network localhost

Deplyments

KalyChain Mainnet:

Governance Token: 0x4BA2369743c4249ea3f6777CaF433c76dBBa657a
Governor Contract: 0xF6C1af62e59D3085f10ac6F782cFDaE23E6352dE
Timelock Contract: 0xA11572e9724dfeD2BCf8ecc9bfEd18CC609C4c6D
Treasury Contract: 0x92564ec0d22BBd5e3FF978B977CA968e6c7d1c44

KalyChain Testnet:

Governance Token: 0xF917BdbeFc80EC42A091F9E466C794684a95327E
Governor Contract: 0x3ce8eDA4c48635983F15af7D3Dae96C8D9Ae593d
Timelock Contract: 0x34AcBA229Aeaf7F1c0f442633F35E26Bc94b4e2A
Treasury Contract: 0x5E65BEC7D118751c3b92BBccD1bEE8165e663b4b

License

Distributed under the MIT License. See LICENSE for more information.

Contact

Kaly Chain Team - https://kalychain.io

Project Link: https://github.com/KalyCoinProject/dao-contracts