Mutual Governance: LG token

ABSTRACT

Multi-class on-chain governance token based on ERC1155, works with withtally.com for proposals and voting, extends Open Zeppelin Solidity framework with ability to declare different voting power weights/classes. Backwards compatible with ERC20.

BACKGROUND

ERC20 - widespread standard for tokens on Ethereum. ERC1155 - emerging standard for fungibility-agnostic token sets. Open Zeppelin - popular well-audited and robust framework for Solidity smart contract development. On-Chain Governance - DAO system whereby smart contract functions may be proposed, voted, and executed with public UI ecosystem, timelocked controllers, and other purposes. Voting Power - the weight of an account-cast vote based on a token balance.

OPPORTUNITY

Solutions until now have relied on a flat one token one vote approach that uses snapshots of historic blockchain state to prevent double voting. As of yet there is no standard solution for multiple classes of shares e.g. founder, preferred, common each wth different voting weights. Thus it is difficult to model real world control structures on chain. The current on-chain governance solutions only work with ERC20 tokens that can only reprent a single share class.

LOCI MUTUAL SOLUTION

ERC1155 provides a perfect interface for managing a set of related tokens from a single contract with a single address. Given a single ERC1155 contract address, the different classes of shares may be represented as integer token identities e.g. Founder = 0, Preferred = 2, Common = 3, etc. This project will extend existing Open Zeppelin governance solution to ERC1155 in such a way as to weight voting power per ERC1155 token identities.

Example:

Loci GLOBAL (LG) tokens represent voting power held by Loci associates for on-chain governance of mutual property assets. The DAO distributes two classes of voting power--350,000 LGY founder shares with 35% of voting power and 440,650,000 LGC common shares with 65% of voting power.

440,650,000 LGC as ERC1155 65% voting power
    350,000 LGY as ERC1155 35% voting power
-----------
441,000,000 LG  as ERC20

LG intends to deploy a single smart contract based on ERC1155 and ERC20 that will allow holders to hold either token class while at the same time providing ERC20 semantics for standard online wallets.

Holders from both classes may issue proposals for governance via UI such as withtally.com and their respective voting power will be determined based on the particular class.