DAism Whitepaper

v2.1

Navigation

1. Introduction

What is DAism?

DAism is a public governance layer of dApps and tokenomics . Proof of Value (PoV, Proof-of-Value) is the unique governance consensus developed by DAism. The mission of DAism is aiming to foster the proliferation of Smart Commons and the flourishing of tokenomics.

What is Proof of Value（PoV）?

Proof of Value (PoV, Proof-of-Value) is DAism's original consensu for the governance of DApps and tokenomics.

DAism's proof-of-value inherits the governance principles from Bitcoin's proof-of-work (and Ethereum's proof-of-stake):

Bitcoin's proof-of-work is driven by rewards, utilizing valuable labor to produce a reliable ledger as a collaborative task. Similarly, DAism's proof-of-value is reward-driven, with the core mission of fostering dApp development, aiming to generate valuable dApps and nurturing Good Tokenomics.

If you've developed a dApp and are willing to embrace DAism's Proof of Value governance, you can mint a Smart Commons on DAism with this dApp in just one minute. Subsequently, if your dApp proves its value, you can continuously receive rewards. Yes, the rewards provided by PoV are lifelong!

The introduction of Proof of Value signifies that, like Bitcoin and Ethereum, DAism is committed to cultivating a governance model that goes beyond traditional paradigms, laying the groundwork for a vibrant and sustainable decentralized ecosystem.

More introduction: What is Proof of Value?

Or the latest deck(same content):

What is Proof-of-Value?

A Detailed Introduction of Proof of Value

Development of Blockchain governance technologies

Blockchain, originating from the underlying consensus and token technology of Bitcoin, has proven to be a great governance mechanism with its proof-of-work consensus.

Representing Blockchain 2.0, Ethereum initially chose to transition from proof-of-work to proof-of-stake (PoS). Proof-of-stake has proven to enhance Ethereum's capability to deploy and operate dApps (smart contracts). It achieves features such as permissionlessness, composability, anti-censorship, and trustless trust.

However, since the explosive growth of dApps in 2017, the industry has struggled to find effective governance strategies for dApps. Additionally, tokenomics have almost become synonymous with scams and bubbles.

In the spring of 2019, DAism started from the governance of decentralized exchange and, through years of technical exploration, finally developed Proof of Value (PoV). This innovation serves as a foundation for effective governance of tokenomics and dApps.

DAism's Exploration of Smart Commons

After a decade of exploration, blockchain has demonstrated the tremendous power of fundamental values such as decentralization, anti-censorship, trustless trust, and anonymity through the hardcore development of tokens and smart contracts. However, these achievements have mostly been confined to the public blockchain layer rather than the application layer.

1. The Anonymity of Blockchain Implies Isolation from Individuals

Some may recall the early promotional language of Bitcoin, often emphasizing the statement "Bitcoin is anonymous" - you can still find this on bitcoin.org. Unfortunately, over time, some people, fearing the tyranny of a centralized world on one hand and unwilling to relinquish their own power on the other, quietly "erased" the memory of this core feature of blockchain.

To this day, no one has been able to prove that Satoshi Nakamoto mined a total of 1,125,150 BTC. The anonymity of Bitcoin prevails!

Ethereum has gone even further by dividing accounts into two types: Externally Owned Account (EOA) and Contract Account (CA). In simple terms, EOAs are for human use, while CAs are exclusively for smart contracts. The addresses of these two types of accounts are indistinguishable to the naked eye.

Furthermore, since 2017, Ethereum's founder, Vitalik Buterin, has been continuously exploring Account Abstraction. This initiative aims to enhance the role of CA, allowing it to pay transaction fees and trigger transaction execution just like EOA. In other words, without human intervention, dApps can initiate operations autonomously based on external conditions, including actively interacting with other contracts! This proposal greatly enhances the possibilities to isolate blockchain applications from human control.

2. Cheating is a born bug of human beings

In a human being's society, we have to tolerate this bug but in a blockchain-driven world we are able to eliminate falsification and censorship.

3. Governance Minimization

On November 28 2020, Fred Ehrsam, co-founder of Coinbase and Paradigm, and Dan Robinson published "Governance Minimization" in which there're some key points relating to the topic we're discussing here:

What is credible neutrality?

Credible neutrality is dependability. It means a stakeholder (e.g a user or a developer) can use or build on a protocol with confidence that it will not evolve against their interests. Protocols remain credibly neutral by avoiding being "kidnapped" by any particular group.
Credible neutrality is a primary value proposition in today's crypto community.

It secures values sticked to a platform and protects both concrete (funds) and abstract (development time, users) elements from being extracted, shutdown, and restricted.
Minimization of governance means reducing the power and reliance on governance wherever possible.

Minimization of governance is important because it supports the primary value proposition of protocols: credible neutrality. Minimizing governance tends to make protocols more credibly neutral.
Governance minimized protocols will see the most popular use.

It is a core attribute which kicks off a positive feedback loop between trust and adoption as a standard. It also puts powerful, basic tools in the hands of all creators, generating more opportunities and faster progress for the entire crypto ecosystem.

Do we still remember a frequently discussed topic about Bitcoin's features in its early years---"Trustless"? Essentially only when a system or a dApp is credibly neutural can it be trustless! Therefore, no matter how decentralized a project's governance seems if it lacks credible neuturality the project can hardly survive in the long term in a blockchain ecosystem. The only way to credible neuturality is minimization of governance like what Bancor has accomplished by implementing a price-discovery mechanism with smart contracts and algorithms.

DAism's Definition of Smart Commons:

Smart Commons = dApp + PoV's governance

Smart commons are dApps under the governance of DAism. Each of them is minted under SC0 with a specific dApp. DAism's Proof of Value is the guarantee for effective governance of Smart Commons. The value of dApp is the foundation of Smart Commons. In DAism's well-constructed tokenomics, the exclusive valuation token becomes the value assessment indicator for dApps.
Following the principles of governance minimization and credible neutrality, aiming for exceptionally high user-friendliness and stability.

Hardly any dApp will be isolated in the future. Each dApp can intelligently respond to interaction requests from other dApps and initiate interaction requests to other dApps based on its intelligence. To build a secure, stable, and highly efficient industry on the foundation of these distinctive features, each dApp clearly cannot be inconsistent, capricious, or undergo arbitrary changes. This is to maintain friendliness and stability towards users and external contracts.

DAism's Proof of Value and its Governance for Tokenomics and dApps.

DAism, based on its original Proof of Value (PoV), establishes Good Tokenomics and perpetual reward ,and drives the development of decentralized applications (dApps).

Good Tokenomics

DAism, through innovations in pricing metrics, introduces a reasonable decentralized exchange network known as the IADD Network. The transparency of smart contracts in the IADD Network transforms it into a value-oriented investment market, characterized by fairness and equity.

Through the governance of two major protocols regarding the issuance of valuation tokens and liquidity pool supply, DAism ensures that all Smart Commons maintain impeccable financial practices.
Incentive-Driven Approach

Each valuation token transaction incurs a 2% transaction fee, which is then rewarded to the respective Smart Common's developers. This incentive-driven mechanism encourages the transformation of all dApps into Smart Commons/Public Goods.
Transforming dApps into Smart Commons

Minting on DAism signifies developers voluntarily converting their developed dApps into Smart Commons. This proposal(espcially its sub-protocol SC0) aligns with DAism's commitment to fostering a public and collaborative ecosystem.

2. Technology Stack of Proof-of-Value

The consensus proof-of-value of DAism is woven together by seven major governance protocols, one governance network, and two significant governance funds.

The Proof of Value in DAism is interwoven with three parts:

Seven governance protocols:

📑 Smart Commons’ Hardcore Protocol

✍️ Decentralized Minting Protocol

🏛️ Protocol of Decentralized Autonomous Fund|

🔀 Protocol of Valuation Token’s Supply

⚖️ Protocol of Unit Token

💱 Protocol of Decentralized Exchange

💳 Protocol of Universal Payment
One governance network:

IADD Network, Instantly and Automatically Deployed De-valuation Network, is composed of multiple governance protocols, providing universal and indispensable valuation(exchange) and settlement functionalities for all Smart Commons. IADD Network inherits the decentralized market mechanism from Bancor Network, a groundbreaking innovation. Coupled with innovations in measuring token units, token issuance, market supply mechanisms, and more, DAism fundamentally disrupts the underlying logic of the existing decentralized exchanges(DEXs). This involves challenging the age-old economic principles of the human world, creating unique market economic principles specific to blockchain, and, based on this foundation, overturning the traditional economic value theories to create blockchain economic value theories and implement decentralized methods. There's a remarkable innovation, we call it Houji Prize, which is as simple as this sentence: A 2% transaction fee on valuation token exchange serves as a bonus for the development team of the Smart Common to which the valuation token belongs.
One governance fund:

💖 Satoshi uToken Fund

Total amount: 1.15792x10⁶⁹. The inevitability of the algorithm and the governance of human society are truly a match made in heaven. The scope of the role of proof of value can continue to expand in the future.

3. Governance Protocols of Proof-of-Value

There are 7 governance protocols.

As mentioned earlier, within DAism's Proof-of-Value (PoV), there are seven major governance protocols：

Smart Commons' Hardcore Protocol
Decentralized Minting Protocol
Protocol of Decentralized Autonomous Foundation
Protocol of Valuation Token's Supply
Protocol of Unit Token
Protocol of Decentralized Exchange
Protocol of Universal Payment

Smart Commons' Hardcore Protocol

This protocol defines the basic information for a Smart Common such as its ID, name in English, logo image(in SVG format, recommended file size less than 6k), description(it can be a slogan), date of establishment, team members(in ETH address, anonymous), version, contract address of dApp, proprietary valuation token's name, abbreviation, and sign, etc.
When setting up a smart common, the creator has the option to manually add some addresses to the smart common as its initial members.
This protocol also includes an important rule for the upgrade of smart commons: its dApp must be reliable, which means its dApp can not be modified by anyone once deployed. If you know what Smart Contract Composability is, you definitely know how important this rule is. Technically, Proxy Pattern is a suicide way for almost any smart common. If you find there's a bug in your dApp, fix it and deploy it as a new dApp to Ethereum and then, go back to DAism to mint it as a new version of your smart common. So, Data Separation might be the best strategy for your dApps' development, and Contract Migration might be workable as well. Read this article if you need some help to understand dApp upgrade.

Decentralized Minting Protocol

A. Mint

We all know Ethereum has two account types: externally owned accounts (EOAs, commonly known as wallet addresses) and contract accounts (CAs, addresses unique to each smart contract).

Minting refers to contract interactions, which are the most basic behaviors between smart contracts. Currently, minting requires developers to use EOAs to initiate transactions (for interactions) and pay the associated gas fees. However, the ongoing push by Vitalik and other developers for Account Abstract aims to change this premise.

DAism adopts a minimalistic and highly reliable decentralized authentication method for creating a smart common. This process begins with a minting request from a smart contract on the Ethereum mainnet. DAism will only accept this request if the creator of the smart common (referring to the Ethereum account, not the person) is the same as the owner of the smart contract (also referring to the Ethereum account, not the person). DAism's Decentralized Minting Protocol can prove which smart contract a smart common originates from, a mechanism that is simple yet absolutely authentic and reliable.

Therefore, minting is the only way to create a smart common, serving as the genesis evidence of the smart common.

Additionally, the protocol includes a license for smart commons named SCC0 (Smart Creative Commons 0). The minting operation declares the contribution of its smart contract, along with any indivisible and non-counterfeitable components it may have, as a whole (i.e., dApp, EIP, AI, paper, etc.) to the public domain—Subsequently, we refer to the newborn as a smart common.

The name Smart Creative Commons 0 evidently pays homage to CC0.
Interestingly, in Solidity, developers use different keywords to declare the visibility of functions and state variables that define specific business logic. Among these, public means that any user and any contract, whether EOA or CA, can call the function or state variable. This invocation connects to non-public contracts through the structural relationships between smart contracts. It's clear that the design of the Solidity language has long been prepared for the "public" option, guiding the development of dApps.

At the same time, there's a license in this protocol, which is a Smart Commons License, meaning that the Minting operation announces that a dApp (a combination of certain smart contracts) has become a Public Good. We then call this dApp as a Smart Common, which is under the governance of DAism.

For DAism, as long as a smart contract is declared public, its developer can use it to mint a smart common. Therefore, a smart common can correspond to:

A public dApp—it can be a smart contract or a group of smart contracts. It can also be a free combination of multiple sub-dApps in the future.
An EIP — it can be a proposal to improve a certain protocol of Ethereum, or a technical method or standard required for dApp development. The solution we suggest is that the content of the new EIP should be HTML source code, and it should be written into the smart contract for minting smart commons with the following function:
```
function eipContent() external view returns(string memory);
```
A public AI—if the AI's source code contains a wallet address that matches the owner of a smart contract, it can prove that this owner is the developer of the AI. This is a form of DID authentication (though currently, AI source code hosting is centralized, which is not secure enough. How to achieve secure DID for AI endpoints is yet to be explored). Published EIPs can also refer to this method to allow others to verify their correspondence: the author adds a wallet address in the EIP that matches the owner address of a smart contract deployed on the Ethereum mainnet.

However, literary works and the like cannot currently become smart commons, as their originality is difficult to verify. Nonetheless, future solutions should emerge with the help of AI.

Smart Creative Commons 0

Proof-of-Value requires developers to accept the SCC0 license (Smart Creative Commons 0), while minting their smart creations, like dApps or open source softwares, into smart commons.

SCC0 v1.0b

Minting a smart common with a smart contract or a wallet address(EOA) under this license signifies that this smart contract or EOA, along with its reliable components as a whole, is governed by the exclusive terms of this license.

We all know that the owners (or developers or managers) of any smart contract or any EOA is anonymous. Because of this anonymity, no one can prove who has any rights or who bears any responsibilities or who is even a victim of any disaster.

All smart contracts and their related components, for example, any smart contracts and its frontend of a dApp, or any open-source software associated with a wallet address, accept Proof-of-Value's governance.

No rights other than receiving anonymous awards
Anonymity means that the developed smart contracts and their related components are fully contributed to the public domain, belonging to the Smart Common. Apart from enjoying the awards brought by Proof-of-Value (PoV), all other rights, including all related rights and neighboring rights, are entirely relinquished.

No Liability
Anonymity also means that no one in this world makes any warranties about a dApp and its exclusive valuation tokens, no one assumes any joint liability.
When using or calling the dApp, or investing in the smart common's exclusive valuation tokens, no one may imply endorsement by the smart common or anyone related to the smart common.

B. Definition of Smart Common

Only by thoroughly understanding the first four protocols here will you realize:

Smart Common refers to public smart creations that follow the SCC0 license - they are "smart" because they are based on smart contracts, which's even self-executing; Under the public characteristics that smart contracts can achieve, such as transparent, decentralized, permissionless, censorship-resistant, trustless trust, and freely combinable, further ensuring their public nature through the SCC0 license is what we refer to as public commons.

C. Classification of Smart Commons

We have adopted the common methods from Unix and Windows operating systems to classify smart commons in a decentralized manner:

The naming of valuation tokens draws partially from the method used in computer operating systems, which divides names into two parts with a dot (“.”). The first part is the main name, and the second part is the extension. It is recommended that the extension be in lowercase to make the main name stand out.
The classification of smart commons is reflected in the extension of the valuation token.
Categories are continuously added in a decentralized manner:
1. Anyone can add new extensions to create new categories.
2. Extensions can be modified.
3. The naming of valuation tokens for DApps has been set to have no “.extension”, such as DAISM. This is a simplification strategy (and the only one). This also means that .dapp and .app are not allowed to avoid confusion.
4. For any other category, the naming rule for valuation tokens is “XXXX.extension”. For example, UL.eip (indicating its smart common is an EIP) or ALOHA.ai (indicating it is an AI project 😂). Anyone can freely set the extension of their smart common—this is a decentralized naming convention. Of course, if someone has already created a flawless name for a category, it is hoped that subsequent developers will adopt it.

Protocol of Decentralized Autonomous Fund

The Proof-of-Value (PoV) consensus of DAism provides rewards for every valuable smart common. Each smart common also has a minimalist decentralized autonomous fund (DAF), which can adjust the distribution of rewards. This includes determining the respective percentage allocated to each account.

Protocol of Valuation Token's Supply

Any smart common can issue its exclusive valuation token. The primary function of valuation token is to engage investors in the assessment of the value of dApps and provide incentives for the consensus proof-of-value.

This protocol defines valuation token's name, symbol, logo, supply, price, etc.

This protocol is one of the key protocols of the IADD network. Every smart common that issues a valuation token follows the rules below:

Token Standard adopted: EIP-3712 (developed by DAism's core team).
All the supply should be directly issued to the liquidity of IADD network. The smart common that issues its valuation token has no reserves. This is a specially designed rule that prevents the smart common from colluding with "whales" to manipulate the market. Therefore, this protocol fundamentally revolutionizes the longstanding irrational token market supply in the blockchain markets.
Uniform issuance: Total supply of 1,000,000,000 tokens, with an issuance price of 0.000000000000000000 jeedd（Actually the original price in liquidity is 0.01 jeedd. We have zeroed balance）.

Protocol of Unit Token

The purpose of this protocol is to establish a Price Unit System!

The unit token(or uToken) is a native token forged through Ether(ETH). In DAism's IADD Network (Decentralized Valuation, Decentralized Exchange and Decentralized Payment 3-in-1 network), it utilizes a constant product formula to price all valuation tokens.

This is a core innovation of DAism.

uToken is forged through ETH, meaning the pricing token has a unique issuance mechanism. uToken can be understood as a variant of ETH, deriving its value from Ethereum. uToken is also a core element of the IADD Network. The composition of trading pairs are uToken and valuation tokens of smart commons.
uToken is a highly unique token. It is defined by DAism as a price prototype, where 1 uToken is equal to 1 jeedd. Similar to the unit of mass in the well-known International System of Units, DAism has a set of price units for calculating the prices of valuation tokens, with jeedd serving as the fundamental unit of token prices.
In DAism every token is priced based on the algorithm CPMM (constant product market maker, or constant product formula) and is priced with a base unit "jeedd".
jeedd is the base unit of any valuation token's price. uToken serves as the price prototype in IADD Network. Its price is denominated in jeedd, which means that whenever there is a valuation token exchange or payment, the pricing is consistently denominated in jeedd as the fundamental unit. For payments within tokenomics, the prices of all products and services are also quoted in jeedd. For instance: 1 ISM = 0.01 jeedd

The price of a product: 0.5 jeedd/kg

The price for a service: 200 jeedd/hr

uToken is a groundbreaking pricing token in DAism's unique price system(Unit of Price). It significantly reduces the complexity of valuation token applications and aligns seamlessly with the requirements of decentralized markets and universal payment(settlement).

Why is an Ether(ETH) variant necessary?

ETH has missed the opportunity to serve as a price prototype, as its value has been overshadowed by the legal tender of the United States. Everytime when the market turn to bear, some miners have to quit just because ETH's price dropped dramatically. When the market goes bear, there're always some miners compelled to exit due to the substantial and sudden drop in the price of ETH.
The issuance strategy employed by ETH is not conducive to rapid market expansion, which often requires a substantial increase in number within a short timeframe.
Ether (ETH) stands as the native cryptocurrency of the Ethereum blockchain, distinct from tokens issued by smart contracts. This means it doesn't adhere to ERC-20 or any other token standards and must typically be minted into WETH, an ERC-20 token, before used by a dApp. To address this, the optimal strategy for creating a variant is through forging.
In the tokenomics of DAism, as a price prototype, uToken's price is solid. This makes it an ideal token for investment settlements or daily payments, similar to the everyday use of fiat currency.
Unlike some other tokens, uToken cannot be arbitrarily issued; it requires a tangible value source. Additionally, its issuance must follow a decentralized approach to maintain its integrity.

Unit of Price

In Protocol of Unit Token, the basic unit of price is jeedd, and the prototype of jeedd is uToken, which means that the price of a uToken is defined as 1 jeedd. The issuance mechanism of uToken is named as ETH Forge. and uToken's precision is 18 bits, which means that attojeedd (10^-18jeedd) is the smallest denomination of price.

Name: Unit Token

Abbr: UTO

Symbol/Sign/Logo:

Basic Unit: jeedd

1 jeedd = 100 cent（centijeedd）

Units:

Base 10	Name of Prefix	Symbol of Prefix
10^24	yotta	Y
10^21	zetta	Z
10^18	exa	E
10^15	peta	P
10^12	tera	T
10^9	giga	G
10^6	mega	M
10^3	kilo	k
10^2	hecto	h
10^1	deca	da
10^-1	deci	d
10^-2	centi	c
10^-3	milli	m
10^-6	micro	μ
10^-8	sat	s

Motivation

First, let's review the related points from some protocols:

All valuation tokens of each smart common are entirely issued to the IADD Network. What sets this approach apart from the commonly initial coin offering is that the development team is not responsible for the issuance of valuation tokens, and they do not receive any allocation of valuation tokens. This eliminates the possibility of dApp development teams exploiting valuation tokens to manipulate the market!
With all valuation tokens of each smart common issued to the IADD Network, the prices of all kind of valuation tokens can genuinely reflect the market's real value assessment.

The International System of Units (French: Système International d'Unités, abbreviated as SI) is the most widely adopted standard system of measurement globally. For example, in 1793, the definition of weight (later changed to mass) was based on the weight of pure water at its freezing point with a volume of one cubic decimeter. It can be seen that the unit of weight is defined by a reference object (standard). With the introduction of the mass standard and its base unit, the weight (mass) of all things can be calculated through algorithms of a scale. uToken serves as the pricing prototype and jeedd is the basic unit of price.
The IADD Network adopts the algorithm of Uniswap (Constant Product Formula), but it calculates the prices of valuation tokens using uToken instead of ETH.
ETH Forging Protocol: This is a sub-protocol. Through the destruction of ETH, the unit of account token is issued, making it a variant of ETH. The unit of account token is not generated out of thin air but is issued through the transfer of ETH value. This is a decentralized forging model, as users have the autonomy to decide when and how much forging to undertake.
The initiation of the DAism forging contract signifies the first instance where Ethereum's homogeneous tokens have their independent decentralized pricing mechanism. It also heralds the end of an era where centralized exchanges dominate and exploit tokenomics.
Another crucial application area for uToken is decentralized settlement. As the prices of all other tokens fluctuate and cannot be stably held by consumers for everyday spending or investment exits, uToken, with its constant price (1 uToken ≡ 1 jeedd), qualifies as the universal payment token (or settlement token) within the DAism's tokenomics.
The demand for blockchain payments is growing as tokenomics develops. Since we cannot currently calculate the future size of this demand for a specific period, there is a need for a universally used payment token with theoretically unlimited issuance. Moreover, it also needs to be supplemented by liquidity pools that can be adjusted in both directions according to demand.

This is a solution aimed at completely dismantling the interference and disruption caused by centralized exchanges in decentralized markets. It is also a solution for tokenomics settlement.

Issue of uToken: ETH FORGING

Why do we need a variant of ETH?

ETH is the native cryptocurrency of the Ethereum blockchain and is completely different from tokens issued by smart contracts. It doesn't follow the ERC-20 or any other token standards based on smart contracts, meaning no smart contract can manage (like freezing) ETH according to these token standards. This often requires ETH to be swapped for its wrapped version, WETH (an ERC-20 token), before it can be used in dApps.
So why not just use WETH?
First, it’s inefficient. There’s always an extra step to exchange, and the swapping takes time.
Second, the exchange between ETH and WETH is reversible, which can lead to uncontrollable situations. For example, a sudden spike or drop in ETH's price could trigger network congestion to block most transactions. Even if Ethereum's TPS (transactions per second) increases from the current 10+ per second to a hundred times more, it could still cause delays or even congestions in exchanges. This affects the stability of the financial ecosystem that dApps are built on, and there’s a risk that capital or hackers could exploit this for arbitrage. So it's an inefficient and very insecure solution. To address this flaw, the best strategy for creating a variant is to use non-reversible minting.
The initial issuance of ETH distorted Bitcoin's proof-of-work.
We know that Satoshi designed BTC with a completely decentralized reward fund model, but unfortunately, the founding team of Ethereum adopted centralized methods for ETH's issuance from the very beginning, using capital operations like ICOs, which essentially split the ETH among themselves! At that time, the Ethereum Foundation was assigned 9.9% of the total, and they shifted from Bitcoin's decentralized reward mechanism to a centralized one, which is controlled by a few individuals, raising long-term questions about its financial transparency. Now, we’re deciding to correct this historical mistake and rebuild the governance fund! Yes, within the Ethereum ecosystem, using ETH to provide value conversion for uToken indicates that we want to return to Satoshi's governance philosophy.
ETH is still being continuously burned by EIP-1559, and this practice of increasing ETH's price volatility is obviously at odds with the price unit system! Plus, long-term currency burning isn't a good thing either.
The issuance of ETH lacks a reasonable guiding principle.
The issuance of ETH has been adjusted a few times. According to the Ethereum website, currently, 1,700 ETH are issued daily to stakers, and approximately 1,700 ETH are also burned, resulting in a net inflation rate of 0 or lower for that day. Its supply has remained almost unchanged (or slightly decreased or slightly increased) over the long term, making it inflexible. This means ETH has lost the potential to serve as a price prototype! Because if ETH (actually WETH) is used as a price prototype, and the market surges too quickly, there will be a shortage of price prototypes!
uToken is not generated randomly; our design gives it a definite source of value, which is Ethereum.

The following section requires you to understand Uniswap's constant product formula(automated market maker algorithm) in advance. Please refer to the following information for details.

Hayden Adams. 2018：https://hackmd.io/@477aQ9OrQTCbVR3fq1Qzxg/HJ9jLsfTz?type=view.

And the discussion initiated by vitalik Buterin: Improving front running resistance of x*y=k market makers

This protocol will adopt the ETH forging model, issuing uToken with the current USD price of ETH as a reference. Its issuance mechanism is quite unique:

Forging is irreversible.
Forging will directly burn ETH, meaning the forged ETH will be sent to a black hole address (0x0000000000000000000000000000000000000000), and there's no possibility of redeeming the ETH.
Exchange Value of ETH and uToken During Minting
When DAism is officially launched, the exchange rate of ETH to uToken will be initialized based on the historical highest price of ETH (currently $4,870), meaning that 1 ETH can mint 4,870 uTokens (note that early participants in the minting process will receive rewards).
However, the exchange between ETH and uToken is not a one-time event. If the price of ETH reaches a new high (let's call it V2, with the previous high being V1) six months after that, or in the following year, the number of uTokens that can be minted per ETH will be adjusted to reflect that new high (i.e., V2), and all previous minters will receive compensation for the difference (i.e., V2 - V1).
Exchange Fixation: When the total amount of minted ETH reaches 60%, the exchange base will no longer increase and will be fixed at the highest dollar price of ETH up to that point. Alternatively, if the price of ETH reaches $487,000, the exchange base (487,000) will be fixed and will not increase thereafter. This mechanism acts as a price circuit breaker in relation to the external markets.
Forging Initialization

Since we don't know how many uTokens humanity will need in the future, we've decided on a straightforward strategy: we'll issue all the uTokens that a smart contract can produce (which comes out to about 1.15792x10⁶⁹ tokens, based on Solidity's maximum integer calculation with a precision of 8 for UTO). This fund is called the "Satoshi UTO Fund." To meet decentralization requirements, we plan to have the first 50 addresses that participated in the minting trigger this issuance. Each address will mint 0.02 ETH, and they'll still be able to exchange for uTokens, but the minting rewards from the merged 1 ETH will all go to the fund. DAism will issue honor tokens to these 50 addresses to permanently commemorate this event. Regardless of how much ETH ultimately participates in the minting, the uTokens everyone ends up exchanging for will only make up a tiny fraction of the total uTokens.
Algorithm( Imporved constant product model) provides forging rewards

In the early stages of a project that hasn't proven successful yet, there's always a higher risk involved. Plus, we're using an irreversible method of directly burning ETH. To inspire participation, we offer a reward curve based on Uniswap's constant product model. After initialization, if the first participant burns 1 ETH, he/she will receive over 480,000 uTokens as a reward.
x: Amount of ETH in the forging pool

y: Amount of uToken in the forging pool

Fomula: x∗y=k

The reward for the nth early bird is calculated as follows:

Reward R=Δyn=yn−1−yn=(k÷x0)−(k÷x1)=k×(1/x0−1/x1)

Where: $x_{n} = x_{n - 1} + Δ x_{n}$

Δxn is the amount of ETH forged by the nth person.
Initialization of K Value:

We will use the total ETH burned as of November 30, 2022, under EIP-1559, as the initialized total ETH. I observed 2,750,240 ETH burned (https://etherchain.org/burn) on November 30, 2022, at 00:00 Hong Kong time, with a value of $3,320,364,758 USD, representing the global user's loss, we assume that these ETH have entered the forging pool.

Simultaneously, we will use the product of these two meaningful data points as the K value for the early bird reward algorithm:

K = (2750240 *3320364758)= 9,131,799,972,041,920 ≈ $9.1318e+15
Rewards Formula

X * Y = $9.1318e+15
The bonus will decrease rapidly in a non-linear way as the amount of ETH being forged increases.

Protocol of Decentralized Exchange

This protocol governs the exchange of valuation tokens.
Still employs Bancor's innovative Automated Market Maker (AMM) The price discovery mechanism is similar to Bancor Network. The IADD Network serves as DAism's universal decentralized exchange and payment network, consisting of uToken as the price prototype (pricing token), smart common-specific valuation tokens, constant product formula, and smart contracts.
Through the collaborative Protocol of Valuation Token Supply, smart contracts autonomously manage liquidity pools algorithmically, eliminating the need for human involvement.
When any valuation token is exchanged on the IADD Network, a transaction fee (0.2%) is rewarded as a bonus to the respective smart common's developers.

Protocol of Universal Payment

This protocol works closely with the Protocol of Decentralized Autonomous Fund, Protocol of Unit Token, and Protocol of Decentralized Exchange.
Jeedd is the fundamental unit of price in DAism's consensus. All prices for products and services are quoted in jeedd.
When realizing investment, or purchasing products or services, automatic conversion of different tokens is facilitated through the IADD Network. And uToken serves perfectly as the settlement token for investment and merchants. Rewards for smart commons' developers are settled by UTO.

Governance-Related Technical Discoveries

EIP-2569: A Standard for Saving Images Onchain

Our proposed standard for saving images onchain has great significance

In order to better implement Token of Honor, we proposed an Ethereum standard EIP-2569(Saving and Displaying Image Onchain for Universal Tokens)
This standard paves the way for exploring more possibilities of saving images onchain.

Token of Honor

Token of Honor serves as a record and recognition tool, serving as a crucial incentive for smart common's development.

Its applications are extensive, including:

Honor medals, commemorative tokens, badges, certificates, etc., in the blockchain domain.
Collectible in-game items with intrinsic value-Honor Tokens are entirely stored on-chain, including images.

Here is a simple Token of Honor exchange that we have developed:

toh.best

Here are 2 demos on Ropsten test network：

https://1155.goh.cool/

https://honor.goh.cool (closed)

UI Standard & Protocols

To facilitate the development of third-party dApps for the DAism application layer, we plan to provide UI standards as well. Contributions from third parties are also welcome.

Currently, confirmed third-party protocols in use include the Monkey King Protocol and ActivityPub.

4. IADD Network

Overview

Like its name, Instantly and Automatically Deployed De-valuation Network, IADD Network is a decentralized de-valuation network that is instantly and automatically deployed. It servers for the decentralized valuation of dApps, exchange and universal payment (settlement). So, it's a 3-in-1 network. It has actively contributed to the establishment of a pricing unit system as well.

Missions:

Automatically deploying a decentralized valuation network.
Automatically deploying a decentralized exchange.
Automatically deploying a decentralized settlement(universal payment) network.
A important part of Protocol of Unit Token.

Basiclly, if we just focus on decentralized exchange, IADD Network looks like a combination of Bancor Network and Uniswap. We used Uniswap's price algorithm, CPMM, to replace Bancor's complex algorithm. But actually there're several innovations.

Perfectly Decentralized Price Discovery Mechanism and Abundant Liquidity

① Bancor's innovation brought about a revolution in price discovery mechanisms, eliminating the need for order matching. It revealed that the collaboration of liquidity pools and algorithms in smart contracts can achieve decentralized price discovery, enabling instant completion of exchanges for any number (and same number of different valuation tokens) of tokens. This innovation is undoubtedly worthy of being inherited by DAism.

② The token price algorithm adopts the simpler Constant Product Market Maker of Uniswap. Constant Product Market Maker is a model of market maker and generates token pricing in a non-linear way. CPMM is used by Uniswap, and we have improved it.

③ Valuation changes without distortion, fully reflecting investor judgments: DAism's Protocol of Valuation Token's Supply uniformly supplies all valuation tokens of each smart common directly to the IADD Network. And after the complete issuance of valuation tokens to the IADD Network, they become reserve currencies, contributing to the establishment of liquidity pools in the market. The reserve currencies achieve value discovery through automatic calculations and provides liquidity to the market without the need to consider the size of exchanges. This is a revolutionary protocol because the decentralized exchange network built upon it neither requires nor allows any human participation in liquidity provision!
Built-in Token Price Measurement System

① The unit system for valuation token prices is the only scientific means for blockchain (smart contracts) to obtain pricing power.

② No doubt; it will eliminate all current exchanges.

③ It will completely solve the long-standing universal payment (settlement) issue in tokenomics for over a decade.

④ It merges DEX and D-Payment into a single entity (2-in-1 network).
Smart Contracts Manage Everything, Completely Self-Operational

① The advantage of smart contract is its ability to run permanently.

② Full self-operation means unmanned, i.e., resistance to human intervention.
The composition of trading pairs are uToken and valuation tokens of smart commons.

IADD Network and Good Tokenomics

The above content is very important to shape Good Tokenomics. Here is another IADD Network's contribution:

Realistically Mapping Market Demand : When creating a smart common, its valuation tokens will be issued according to the protocol and entirely distributed on the IADD Network.

A common issue with Bancor and Uniswap is that the amount of coins staked in the reserve pool is often too low. This can lead to significant price fluctuations with even small trades, essentially introducing a leverage effect into the price dynamics and losing the rationality of market pricing. By issuing all valuation tokens into the liquidity pools of decentralized trading networks, subsequent price changes due to supply and demand can reflect the real valuation changes without any inherent leverage.

This mechanism has the following advantages:

Valuation tokens are entirely issued on the IADD Network, and smart common development teams hold none of them. Therefore, the IADD Network prevents these teams from immediately selling reserved valuation tokens for profit by minting a fake dApp.
Capitals can no longer collude with dApp development teams to manipulate prices. For example, immediately selling all tokens when listed on an centralized exchange and buying back at a lower price after a significant drop. In IADD Network, however, the amount of funds required to control the market is a hundred times or even higher than before! And also, in an open and transparent market, the risk of going against the valuation consensus is also very very high!
These two aspects essentially provide a good governance mechanism for the issuance of valuation tokens.
There is some protection for investors participating in the valuation market. Valuation tokens cannot drop below the issuance price of 0, preventing a situation where valuation tokens unreasonably plummet right after opening. Additionally, the first investors cannot incur losses (excluding transaction gas fees)!
This introduces a natural mechanism for smart commons-a valuation token falling to 0 in the IADD Network indicates that the market believes the dApp has no value. If it remains at 0 for an extended period, the dApp likely has failed!

Main Protocols shaping IADD Network

Protocol of Unit Token

See the previous section.
Protocol of Valuation Token's Supply

See the previous section.
Protocol of Decentralized Exchange

See the previous section.
Decentralized Payments Protocol

See the previous section.

This protocol also provides a dedicated interface for payments and ultimately achieve significant improvements in Ethereum gas payments.

Advantages of IADD Network

Instant Deployment

Right after a smart common minted its valuation token will be reading for exchange.
Automatical Deployment

A valuation token's listing and trading are managed and automatically deployed by smart contracts.
Unattended exchange and payments network All existing decentralized exchanges need many users to support their running. The innovation of IADD is of great significance!
Elimination of Privileges from Centralized Market Deployments

This approach removes the privileges of project teams, centralized exchanges, and market manipulators. Aside from free trading, exchanges completely eliminate any human interference in the market.
Introduction of a Scientific Method for Price Calculation in tokenomics.

This marks a significant innovation in the history of human currency!
A solid solution for Tokenomics settlement.

uToken is recognized as the optimal settlement token for tokenomics' investment and retail markets (such as e-commerce). IADD provides two critical elements for tokenomics payments: uToken with an absolutely fixed price and a decentralized settlement network.
The Most Rational Price Discovery Mechanism

In the trading pairs of Bancor and Uniswap, the tokens staked in the reserves are circulating assets with owners. Even if the quantity reaches 5% of the total token supply (once the maximum suggested by Bancor), the price sensitivity of the trading pair is 20 times that of the total supply price sensitivity.

The valuation token is fully supplied to IADD when it is issued, so its price rises and falls without any leverage effect. This is undoubtedly the most authentic price discovery mechanism.
Almost Zero Cost for the development Teams, Easy Support Mint with a dApp to get everything done. It brings great convenience to the development teams.
In Full Compliance with the Core Values of Blockchain It fully aligns with the core principles of decentralization and censorship resistance, etc.
Under decentralized conditions, it establishes a practical mechanism for the natural elimination of dApps.

5. Deverlopment Path of DAism

The Mission of DAism

After a decade of exploration, blockchain, through the hardcore developments of tokens and smart contracts, has demonstrated the tremendous power of fundamental values such as decentralization, anti-censorship, trustlessness, permissionlessness, anonymity, and more. The proof-of-work in Bitcoin and the current proof-of-stake in Ethereum are the most successful governance mechanisms aligning with these fundamental values. However, these achievements have primarily been at the public chain layer rather than the decentralized application layer. We recognize the urgent need for effective governance in the development of dApps and a reasonable governance solution for decentralized swap markets. Now, DAism's governance consensus, "Proof of Value" (PoV), will complete the construction of Good tokenomics and provide a solid governance foundation for the flourishing of dApps' development!

Development of DAism

DAism is initiated and deverloped by NaturalDAO. DAism is a public platform that follows the SC0 protocol and the development is entirely in an open manner.

Roadmap

March 1, 2019 - March 19, 2019: IADD Network Development Planning
March 20, 2019 - June 19, 2019: IADD Network Development Team Discussions
June 20, 2019 - August 19, 2019: IADD Network Code Implementation
- June 20, 2019 - July 20, 2019: Completion of Demo Code
- July 21, 2019 - August 19, 2019: Demo Internal Testing and Discussions
August 20, 2019 - December 20, 2019: Ethereum Token Image Storage
- Image Format Exploration
- Exploration of EIP-2569 Technical Standards
- Development of DHonor.io Project
- Development of DeMe.app Project
2020 Q1: Project Expansion
- Comparison NFT development of ERC-1155 and ERC-721 Demos
- Trial of DHonor.io (later switched to the domain: dhonor.goh.cool), Commemorative Token Design
- Trial of DeMe.app
2020 Q2: Project Exploration
- Theoretical exploration of DAO and the DAism framework
- Third-party community practices for reputation
- Exploration of platform structure
2020 Q3: Personnel Changes, Work Transition
- Co-founder responsible for development leaves, new member joins, development work transitions
2020 Q4: Contract Development Technology Upgrade, Frontend Development Initiated
- Attempted two contract rewrites using Diamond Standard and Beacon Proxy (Beacon Proxy is a storage-free upgradeable proxy).
- Diamond Standard: EIP-2535 | Diamond (Developer's Twitter: mudgen)
- Beacon Proxy: Forum Discussion | GitHub (Developer's Twitter: smpalladino)
- Started frontend development using the Web3 React framework: Web3 React on GitHub | Web3 React on npm (Lead Developer's Twitter: Noah Zinsmeister)
2021: EIP-3712 Token Standard Published
- Comprehensive review of DAism's design, modification of several protocols, and smart contract code details.
March 2023: First Smart Contract Audit
- Audit conducted by Fairyproof
May 2023: Second Round of Audit
- Audit conducted by Beosin
Third Round of Audit: Fairyproof
Fourth Round of Audit: Certik
2024 Q1: Deployment to Ethereum Test Network for Public Testing
2024 Q3: Official Launch