Fund L2 DAO Migration&&## Fund L2 DAO Migration
Now that Bali has been launched we can begin migrating DAOs from L1 to L2. We currently have 6 DAOs interested in migration:
- Purple
- The Park
- Builder DAO
- BLVKHVND
- Nouns DAO Africa
- Lil Toadz
### Funding request
For a DAO to fully migrate there are a few technical automations we have built out to make the experience as smooth as possible. These automations include relaying bridged transactions, setting artwork attributes and airdropping tokens to DAO members.
For a large DAO ie Purple or Builder the total gas cost is around 6,317,460 L1 gas for all L2 migration transactions. This means to sponsor one large DAO migration costs approximately:
- 0.063 ETH @ 10 gwei gas (144 USD @ 2300 ETH/USD)
- 0.126 ETH @ 20 gwei gas (289 USD @ 2300 ETH/USD)
- 0.189 ETH @ 30 gwei gas (434 USD @ 2300 ETH/USD)
- 0.252 ETH @ 50 gwei gas (579 USD @ 2300 ETH/USD)
A funding request of **3 ETH** would allow us to migrate about **15 - 30 DAOs** at current gas prices.
### Funding source
We propose to use 3 ETH from the OPs working group multisig on Base. address: **0x2bAf638C651fb8AB5fB024Df680Be0D5323a2488**
Upon successfully passing this proposal the 3 ETH will be sent to a wallet the migration bot uses to send transactions: **0xf9c4F85BAf81F854d36a3a75113f33b163cad2a7**. Funds will be sent to Base, Zora and Optimism networks as needed depending on where DAOs choose to migrate.
If funds are not fully used ie less than 15 - 30 DAOs migrate they will be returned to BuilderDAO. If funds run out and more DAOs want to migrate we will submit a followup proposal for a second funding request.
*This proposal includes a 0.00001 ETH transfer to put this proposal onchain.*
Deploy Bali to L2&&## Deploy Bali to L2
This is a proposal to deploy the Builder Protocol upgrade "Bali" to the following L2 networks
- Optimism mainnet
- Base mainnet
- Zora mainnet
**This proposal includes no upgrade transactions as the L2 deployments are currently managed by the tech pod multisig (Neokry, Zaak, Valcoholics and Bill). A 0.00001 ETH transfer is included to put this proposal onchain**
Bali introduces the following changes:
1. **Token Reserve**: Reserve n tokens for claiming when a DAO is created. Used for DAOs that want to offer reserved token claims via minters.
2. **Merkle Reserve Minter**: Allow reserved token claiming via merkle proofs. Used for DAOs that want to include a preset list of members to claim tokens.
3. **L2 Migration Deployer**: Helper contract that lets L1 DAOs deploy and seed a DAO on L2.
4. **Alternate Metadata Renderers**: Allow current DAOs to set a new metadata renderer. Allow new deployments to choose an alternate renderer.
5. **Protocol Rewards**: Rewards taken as a percent of protocol auctions distributed to bid referrals, DAO founders and BuilderDAO
For more information: [view the full Bali spec](https://hackmd.io/peXISQ2CSQOwRGmvpUpK9A)
## Audit
The DAO funded one audit of this version with Sherlock.
Sherlock found:
- 2 high risk issues
- 2 medium risk issues
All issues were fixed in the mitigations review. For more info: [view the full sherlock audit report](https://audits.sherlock.xyz/contests/111/report)
## L2 Deployment Configuration
The contracts will be deployed with the following values set:
**Protocol Rewards**
- Builder Reward: 2.5% of final auction value
- Referral Reward: 2.5% of final auction value
- Builder Recipent: OPs working group multisig
**Merkle Minter**
- Builder Reward:
- 0.000777 ETH for every paid mint (Collection+ treasury seed fee)
- 0 ETH for free mints (L1 -> L2 Migration)
- Builder Recipent: OPs working group multisig
## Staged rollout
Since these changes are additive we have decided to deploy the upgrade in two stages.
**Stage one deployments**:
- Optimism mainnet
- Base mainnet
- Zora mainnet
**Stage two deployment**:
- Ethereum mainnet
Upon passing of this proposal we will execute the stage one deployments. The nouns builder UI will be updated to temporarily support both versions at the same time. After a period of 1 - 2 weeks of monitoring the stage one deployments we will submit a proposal for the stage two (Ethereum mainnet) deployment.
Why do a staged deployment?
1. minimize costs for the DAO. deploying multiple times on L1 could lead to large deployment costs
2. speed of issue handling flexibility. since the L2 deployments are managed by the tech pod multisig it allows us to quickly fix any issues that may come up during the monitoring period
3. reduce risks for L1 DAOs with high treasury holdings
## Will this delay L2 migration for L1 DAOs?
No, migration is only dependent on Bali being deployed to L2 therefore it can be shipped after we are confident there are no issues on L2 and before the upgrades are deployed on L1.
Bali Upgrade Audit Funding Request&&- **Token Reserve**: Reserve n tokens for claiming when a DAO is created. Used for DAOs that want to offer reserved token claims via minters.
- **Merkle Reserve Minter**: Allow reserved token claiming via merkle proofs. Used for DAOs that want to include a preset list of members to claim tokens.
- **L2 Migration Deployer**: Helper contract that lets L1 DAOs deploy and seed a DAO on L2.
- **Alternate Metadata Renderers**: Allow current DAOs to set a new metadata renderer. Allow new deployments to choose an alternate renderer.
- **Protocol Rewards**: Rewards taken as a percent of protocol auctions distributed to bid referrals, DAO founders and BuilderDAO
Full spec: https://hackmd.io/@Vc6Y6iquTg2mutFXPZq08Q/ryT9U9vG6
### Chosen audit platform:
**Sherlock** (https://www.sherlock.xyz/)
- Recommended by Verbs team
- Their model is better suited to what we need for this audit
- 1 Senior Auditor + Audit Contest + Mitigations
- https://docs.sherlock.xyz/audits/protocols
**Audit contest quote (as of 8 November 2023):**
$61,875 USD
**Funds to be sent to multisig:**
Neokry, Isaac and Patti - [0x6ec0351b2ceF67e1aE0e97AF65a4365884c48370](https://etherscan.io/address/0x6ec0351b2ceF67e1aE0e97AF65a4365884c48370)
*The equivalent of ~$66k (to absorb potential volatility in ETH from time period between submission and execution) would be sent to the multisig. They would then convert $61,875 worth of ETH to USDC and then send back the remaining ETH to the DAO.
**Estimated Timeline**
**Week of Nov 6**: Proposal to request funds from the DAO
**Week of Nov 13**: Pay deposit to Sherlock
**Nov 21 to Nov 30**: Audit contest
**Week of Dec 4**: Mitigations and final testing
**Week of Dec 11:** Deployment and propose the upgrade to BuilderDAO
Voting no on this specific type of request. We've experimented with funding pre launch / early DAOs a few times and we've had limited success. More than happy to change this to a yes after yellow collective launches and proves out demand for their idea a bit more.
This is probably one of the highest leverage things we can fund right now. Chris has proven himself as a strong DAO founder and having him available for support is +++
I do have some doubts on distribution but this seems like an opportunity we should take while the energy is there. I’m excited for us to share the stories of our most successful DAOs and I think the DAOs themselves can help proliferate these videos in their own ways once the content is produced. let’s make it happen
Neokry 6 Month Extension&&Neokry is currently serving as a Resident Engineer under Builder Proposal #56 and is requesting a 6-month extension.
## Major contributions from the last three months
#### Subgraph
- Developed a [subgraph](https://github.com/ourzora/nouns-builder/tree/main/apps/subgraph) to make data fetching easier for nouns.build and other clients.
- Reduced reliance on zora apis and allowed builder to own our indexing / backend.
#### Client (nouns.build)
- Migrated data layer to subgraph.
- Upgraded to support L2.
- Improved loading speeds and caching.
- [Many bugfixes and minor changes.](https://github.com/ourzora/nouns-builder/releases)
#### Builder Protocol
- Deployed contracts across chosen L2s.
- Optimism
- Base
- Zora
- Developed the [specification](https://github.com/ourzora/nouns-protocol/discussions/111) for our next upgrade named "Bali".
- Token Claiming
- Alternate Core Contract Implementations
- Protocol Rewards
- Sequential Media Metadata Renderer
- Collection +
- Finished the majority of [inital implementations](https://github.com/ourzora/nouns-protocol/pulls) for the upgrade.
- Engaged with zora protocol engineers on code reviews prior to audits.
#### Engineering community
- Onboarded a new part time resident [Jord.](https://nouns.build/dao/ethereum/0xdf9b7d26c8fc806b1ae6273684556761ff02d422/vote/64)
- Hosted a weekly product and engineering session with Zaak.
- Allowed us to onboard new devs, answer questions and present new developments / upgrades to the DAO every week.
- Worked with Zaak on onboarding two more part time residence. (WIP)
- [Ripe](https://twitter.com/ripe0x): Developing tools around droposals as a sustainible mechanism for dao and protocol funding.
- [Martin](https://twitter.com/anquetil): Assisting with L1 -> L2 dao migration frontend work.
- Helped iamnick think through product tradeoffs for a music focused client [Fam](https://nouns.build/dao/ethereum/0xdf9b7d26c8fc806b1ae6273684556761ff02d422/vote/67).
- Started the developer open prop house round.
- This prop house round failed to find traction and will be iterated upon in the coming months likely as an open small grants committee for devs.
## Goals for the next 6 months
#### Client (nouns.build)
- L1 -> L2 DAO migration
- Work closely with Martin on integrating features needed to allow L1 DAOs to migrate to L2
- Allow DAO members to "one click deploy" a copy of their DAO to L2.
- Create a claiming flow that allows L1 DAO members to claim tokens on L2.
- Mixed media DAO artwork
- Allow folders of mixed media to be used as DAO artwork (images, videos, audio).
- Support rendering of mixed media DAO artwork on DAO pages
- Support custom metadata renderers at the subgraph / client level
- Collection +
- Upgrade the create flow and DAO pages to allow users to create DAOs from current NFT collection ie PFP projects, open editions, generative artworks.
#### Builder Protocol (Bali)
- These are actions needed to deliver the Bali upgrade
- Wrap up all inital implementations
- Finishing legal discussions surrounding protocol rewards
- Pending code reviews on custom metadata renderers and new minters
- Engage with auditors to audit the upgrades
- Currently waiting for quotes from Code4rena, Sherlock and Spearbit
- Will present options and reccomendations to the DAO in the coming weeks
- Post audit work
- Work with auditors to implement solutions to any critical issues
- Deploy finalized contracts to supported networks
- Setup Builder DAO proxy and Hats tree
- Allow Builder DAO to manager upgrades and collect fees on L2 with safeguards via Hats protocol.
#### Builder Protocol (Next upgrades)
- These are ideas for the next protocol upgrade and subject to change
- VRGDAs as an alternate auction mechanism
- Removes settlement fees and transactions which has been a common user painpoint
- Allows users to puchase tokens without waiting auction cycles to end leading to better onbaording UX
- Increases flexibility of token distributions
- frontload tokens to quickly build a large community
- slowly ramp up distribution to start a more curated dao
- Useful for DAOs that want smoother onboarding / more specific distribution options
- Crosschain proposals and proxies for DAOs
- Allow DAOs to hold assets across networks
- Hold NFTs and ERC20 tokens on their native networks
- Collect fees on alternate networks
- Allow DAOs to interact with protocols across networks
- Create and mint NFTs across networks
- Payout contributors on cheaper networks like base
- Propose upgrades and protocol changes across networks
- Droposal alternate governor
- An alternate governor proposed by Agora for Nouns
- Allows DAOs to set a shorter turnaround period for Droposals compared to full proposals ie 2 days vs 5 days.
- Can potentially rework Agoras implementation to fit Nouns Builders needs
- Proposal candidates
- Monitor proposal candidates from Nouns as a way for users to seek onchain feedback for proposals
- Can potentially rework Verbs implementation for Builder protocol.
#### Making Builder DAO Sustainable
- We are planning to expirement with several revenue gereration strategies for BuilderDAO going foward.
- Protocol rewards
- After the Bali upgrade Builder DAO will have three protocol rewards
- BuilderDAO Rewards: % of auction revenue sent to Builder DAO for protocol and ecosystem developments.
- Client Rewards: % of auction revenue to a referrer like a custom client to fund new client developments.
- Founders Rewards: % of auction revenue to DAO founders to incentivize DAO creation and incubation where the % is chosen by the DAO founder and conrolled by the DAO they deploy.
- Note: There will be a Snapshot proposal to get the DAO’s opinion on this. Should that fail to pass, we will omit from the scope.
- Revenue from droposals via Zora protocol rewards
- Builder DAO will earn revenue on collection deployments and mints via the new droposals interface built by Ripe
- Flat fee on Collection + claims
- Builder dao will earn revenue on a flat claim fee when users claim Collection + NFTs.
## Funding Request
$18,750 USD / Month for 6 months (12 ETH/ month @ $1600 ETH/USD price)
Total of $112,500 USDC streamed via Sablier (Total ~70 ETH @ $1600 ETH/USD price)
#### Why the increased rate
- Majority of focus shifting to protocol engineering.
- Deep knowledge of smart contracts and Builder protocol required, distinct from frontend work.
- Complex nature of protocol development including testing, reviews and audits to ensure security.
- Much higher level of responsibility and attention to detail.
- Majority of previous residency goals met.
## Multisig
*The equivalent of ~$120k (to absorb potential volatility in ETH from time period between submission and execution) would be sent to a multisig as outlined below. They would then convert $112,500 worth of ETH to USDC, set up the Sablier stream and then send back the remaining ETH to the DAO.
Gnosis Safe to handle Neokry's transaction:
- 0x0bFcef6f9389d209D8D943ebA2893156fb5Ea929
Signers:
- zaak.eth: 0x77ac30452890E5210CB334f601a0A6E8F0A5201B
- neokry.eth: 0x04bfb0034F24E424489F566f32D1f57647469f9E
- thenounishprof.eth: 0xCEEd9585854F12F81A0103861b83b995A64AD915
Recipient:
- neokry.eth: 0x04bfb0034F24E424489F566f32D1f57647469f9E
I think there is potential with this prop and would love to see a resubmission with more of a focus on what this brings to the table for Builder DAO. Show us how would we be mentioned in the media / marketing materials, what are the education components of the fest that apply to Builder DAO and what the funds will be used for. As it stands right now I only managed to figure this stuff out via dms with the event organizers but this is critical information that should be in the prop for everyone to see. Thank you for the submission and hope to see a revised version soon.
we need more frontend contributors as I start focusing on protocol. jord has the technical capabilities + deep experience in the dao tooling space to contribute. excited to continue working with him if this proposal is successful
Prop House Open Dev Round&&### Why
- Client development has been very top down
- We want to broaden the reach of our engineering community
- We want to experiment with new onboarding methods for Builder DAO
### How
- An open prop house round to fund OS contributors to nouns.build
- The round is judged on one criteria: merged PRs to the nouns.build frontend repo
- To win, proposals need to receive at least ¼ of total votes at the time of round creation
- Contributors can put their submission to the PH round before, during or after completing the work (retro funding is encouraged)
- No hard limit to # of PRs needed as each issue will require a different amount of work. Up to the community to decide what the funding threshold should be
- To help onboard new devs we will continue our public weekly engineering / product sessions for anyone interested in contributing
### Requirements
- Formation of a distribution multisig
- deployed to: [0x6e4F8AE67bFd53c5364b3b7394E4c93FAC120d2d](https://app.safe.global/settings/setup?safe=eth:0x6e4F8AE67bFd53c5364b3b7394E4c93FAC120d2d)
- A set of technical community members that will distribute rewards for the round
- neokry.eth
- zaak.eth
- valcoholics.eth
- billzh.eth
- 3 initial winners
- first three developers to submit to the round and reach quorum (1/4 of total votes)
- winners must include the address of their wallet in any pr they submit so we can link to the prop house submission
- Base Rewards: 1 Builder DAO token and 0.5 ETH
- Extensions Rewards: up to an additional 0.5 ETH
- Rewarded for any contributors that merge PRs with significant value or added time
- To be judged by the distribution multisig
- Any remaining ETH not used for extensions rewards will be returned to the DAO treasury
- Total funding required:
- 3 ETH: 3 x 0.5 base rewards + 3 x 0.5 extension rewards
- 3 Builder DAO tokens minted via airdrop
I like the ideas behind this prop but as mentioned by other voters I would like to see this broken into two distinct props. One for funding a new esports focused client and the other for purple sponsorship / collaboration on the new campaign.
I support the UNA. BuilderDAO is paving the way for US based DAOs. Nouns members that have an issue with how funds are being used should join BulderDAO and vote accordingly. The DAO might have issues but attacking Jacob in place of discussing them is just sad.
This is really 4 proposals in one so I'll provide a reason for each.
- Removing veto power would be a mistake here, transferring it to a multisig might be a better approach but would need more discussion within the dao first
- Increasing noun allocation would be a mistake as well since nouns is not interested in subdao voting
- Removing zora founder allocation is nullifying all past and current work zora has put in to bring builder to life. Maybe an adjustment could be discussed but removal is not the right step.
- Increasing min bid might have some merit but setting to 3 ETH is too high imo