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MDAO Token - Governance & Voting

🗳️ Overview​

MDAO (Mushroom DAO Token) is the governance token of the Ethereal Offering ecosystem. It grants holders the power to vote on proposals, shape the future of the platform, and participate in decentralized decision-making.

PropertyValue
SymbolMDAO
TypeERC-20
Total Supply1,000,000 (1M)
Decimals18
Supply ModelFixed (no minting after deployment)
Primary UseDAO governance, voting rights

🎯 Purpose & Philosophy​

Why Separate Governance Token?​

We use a separate governance token (MDAO) instead of using PSILO for governance because:

  1. Separation of Concerns - Fundraising ≠ Governance
  2. Earned Influence - Governance is earned through participation, not just purchased
  3. Long-term Alignment - Stakers are committed to the project's success
  4. Sybil Resistance - Harder to game the system
  5. Flexibility - Can adjust governance without affecting fundraising

Governance Philosophy​

"One token, one vote" - but tokens must be earned through:

  • Staking PSILO (commitment)
  • Participating in ceremonies (engagement)
  • Contributing to the community (service)
  • Holding long-term (alignment)

💎 How to Earn MDAO​

1. Stake PSILO Tokens​

The primary way to earn MDAO is by staking PSILO:

// Stake PSILO to earn MDAO
function stakePSILO(uint256 amount, uint256 lockPeriod) external {
    // Lock PSILO for 30 days to 4 years
    // Earn MDAO based on amount and duration
}

Earning Rate:

  • Base Rate: 0.1 MDAO per PSILO per year (10% APY)
  • Lock Multipliers:
    • 30 days: 1x (10% APY)
    • 90 days: 1.5x (15% APY)
    • 180 days: 2x (20% APY)
    • 1 year: 3x (30% APY)
    • 2 years: 4x (40% APY)
    • 4 years: 5x (50% APY)

Example:

  • Stake 10,000 PSILO for 1 year
  • Earn: 10,000 × 0.1 × 3 = 3,000 MDAO
  • After 1 year, you have 3,000 MDAO voting power

2. Participate in Ceremonies​

Earn MDAO by making offerings at the Sacred Altar:

  • Small Offering (< 100 ETHO): 1 MDAO
  • Medium Offering (100-1000 ETHO): 10 MDAO
  • Large Offering (> 1000 ETHO): 50 MDAO
  • Mega Offering (> 10,000 ETHO): 200 MDAO

Bonus: First offering of the month = 2x MDAO

3. Community Contributions​

Earn MDAO for valuable contributions:

  • Bug Reports: 10-100 MDAO (based on severity)
  • Code Contributions: 50-500 MDAO (based on impact)
  • Content Creation: 25-250 MDAO (blog posts, videos, tutorials)
  • Community Moderation: 10 MDAO per week
  • Translation: 100 MDAO per language
  • Partnership Referrals: 500 MDAO per successful partnership

How to Claim:

  1. Submit contribution proof to Discord
  2. Community votes on reward amount
  3. DAO approves payout
  4. MDAO sent to our wallet

4. NFT Breeding​

Earn MDAO by breeding rare Mushroom NFTs:

  • Common Offspring: 1 MDAO
  • Uncommon Offspring: 5 MDAO
  • Rare Offspring: 25 MDAO
  • Epic Offspring: 100 MDAO
  • Legendary Offspring: 500 MDAO

Bonus: First legendary breed = 1,000 MDAO

5. Liquidity Provision​

Earn MDAO by providing liquidity to AMM pools:

  • ETHO/PSD Pool: 5% APY in MDAO
  • PSILO/ETH Pool: 10% APY in MDAO
  • DM/PSD Pool: 3% APY in MDAO

Calculation:

  • Provide $10,000 liquidity to ETHO/PSD
  • Earn: $10,000 × 5% = $500 worth of MDAO per year
  • Plus swap fees (80% to treasury, 20% to LPs)

🗳️ Voting Mechanics​

Voting Power​

Our voting power is determined by:

Voting Power = MDAO Balance × Time Multiplier

Time Multiplier:

  • Held < 1 week: 0.5x
  • Held 1-4 weeks: 1x
  • Held 1-3 months: 1.5x
  • Held 3-6 months: 2x
  • Held 6-12 months: 3x
  • Held > 12 months: 5x

Why? Rewards long-term holders and prevents vote buying.

Proposal Types​

1. Standard Proposals​

  • Quorum: 10% of total MDAO supply
  • Threshold: 51% approval
  • Voting Period: 7 days
  • Timelock: 48 hours

Examples:

  • Adjust staking rewards
  • Add new AMM pairs
  • Update fee structures
  • Marketing initiatives

2. Major Proposals​

  • Quorum: 25% of total MDAO supply
  • Threshold: 66% approval
  • Voting Period: 14 days
  • Timelock: 7 days

Examples:

  • Treasury allocations > $100K
  • Smart contract upgrades
  • Partnership agreements
  • Token economics changes

3. Critical Proposals​

  • Quorum: 40% of total MDAO supply
  • Threshold: 75% approval
  • Voting Period: 21 days
  • Timelock: 14 days

Examples:

  • Constitution amendments
  • Multi-sig signer changes
  • Emergency actions
  • Protocol migrations

Delegation​

Can't vote yourself? Delegate our voting power:

// Delegate your MDAO voting power
function delegate(address delegatee) external {
    // Your MDAO still stays in your wallet
    // Delegatee can vote with your power
}

Benefits:

  • Keep our tokens
  • Support trusted community members
  • Participate even when busy
  • Can revoke anytime

Popular Delegates:

  • @SpiritualSeeker (100K MDAO delegated)
  • @CodeMonk (75K MDAO delegated)
  • @MyceliumMage (50K MDAO delegated)

📊 Governance Process​

Step 1: Discussion Phase (3-7 days)​

  1. Post idea in Discord #governance channel
  2. Community discusses and refines
  3. Gather feedback and support
  4. Revise based on input

Step 2: Proposal Creation (1 day)​

  1. Write formal proposal with:
    • Title and summary
    • Detailed description
    • Rationale and benefits
    • Implementation plan
    • Budget (if applicable)
    • Success metrics
  2. Submit on-chain (costs 100 MDAO deposit)
  3. Proposal enters voting queue

Step 3: Voting Period (7-21 days)​

  1. Proposal goes live for voting
  2. MDAO holders vote Yes/No/Abstain
  3. Votes are weighted by voting power
  4. Real-time results visible

Step 4: Timelock Period (48 hours - 14 days)​

  1. If proposal passes, enters timelock
  2. Community can review final details
  3. Emergency veto possible (requires 75% vote)
  4. Gives time to prepare for changes

Step 5: Execution​

  1. After timelock, proposal auto-executes
  2. Smart contracts updated
  3. Treasury funds released
  4. Changes take effect

Step 6: Post-Mortem (Optional)​

  1. Review proposal outcomes
  2. Measure against success metrics
  3. Learn and improve process
  4. Share results with community

🏛️ DAO Structure​

Holacracy-Inspired Circles​

The DAO is organized into 4 autonomous circles:

1. Core Circle​

  • Focus: Protocol development and security
  • Members: Core developers, security auditors
  • Budget: 40% of treasury
  • Voting: Technical proposals

2. Development Circle​

  • Focus: Feature development and integrations
  • Members: Frontend devs, smart contract devs
  • Budget: 30% of treasury
  • Voting: Roadmap priorities

3. Community Circle​

  • Focus: Growth, marketing, education
  • Members: Community managers, content creators
  • Budget: 20% of treasury
  • Voting: Marketing initiatives

4. Spiritual Circle​

  • Focus: Ceremonies, recovery programs, partnerships
  • Members: Spiritual advisors, recovery leaders
  • Budget: 10% of treasury
  • Voting: Ceremonial and spiritual matters

Each circle has autonomy within its domain but major decisions require full DAO vote.

💰 Treasury Management​

Treasury Sources​

The DAO treasury receives funds from:

  1. AMM Swap Fees - 80% of all swap fees
  2. NFT Marketplace Fees - 2.5% of all NFT sales
  3. Breeding Fees - Paid in DM, converted to stablecoins
  4. Crowdsale Proceeds - Initial PSILO sale
  5. Donations - Community contributions
  6. Grants - Nonprofit grants

Treasury Allocation​

CategoryPercentagePurpose
Development40%Smart contracts, frontend, infrastructure
Security15%Audits, bug bounties, insurance
Marketing20%Community growth, partnerships
Operations10%Salaries, tools, services
Recovery Programs10%Psychedelic therapy, scholarships
Reserve5%Emergency fund

Multi-Sig Security​

Treasury is controlled by 5-of-9 multi-sig:

  • 3 Core developers
  • 2 Community representatives
  • 2 Spiritual advisors
  • 1 Legal counsel
  • 1 Security expert

All signers elected by MDAO holders.

📈 MDAO Economics​

Supply Distribution​

pie title MDAO Distribution
    "Staking Rewards (60%)" : 60
    "Ceremony Rewards (15%)" : 15
    "Community Contributions (10%)" : 10
    "Liquidity Mining (10%)" : 10
    "Team & Advisors (5%)" : 5

Emission Schedule​

YearAnnual EmissionCumulative Supply% of Total
1200,000200,00020%
2150,000350,00035%
3150,000500,00050%
4125,000625,00062.5%
5125,000750,00075%
6-1050,000/year1,000,000100%

After 10 years, no more MDAO is minted.

Value Accrual​

MDAO value comes from:

  1. Governance Rights - Control over treasury and protocol
  2. Revenue Share - Potential future dividends (requires vote)
  3. Scarcity - Fixed supply, deflationary pressure
  4. Utility - Required for proposals and voting
  5. Network Effects - More users = more value

🔒 Security Features​

Vote Buying Prevention​

  • Time-weighted voting - Can't buy votes right before proposal
  • Delegation limits - Max 10% of supply to one delegate
  • Proposal deposits - 100 MDAO to prevent spam
  • Cooldown periods - Must hold 1 week before voting

Sybil Resistance​

  • Staking requirement - Must stake PSILO to earn MDAO
  • Proof of You - Optional identity verification (Aleo ZK)
  • Reputation system - Track voting history
  • Quadratic voting - Optional for certain proposals

Emergency Mechanisms​

  • Pause function - Multi-sig can pause in emergency
  • Veto power - 75% vote can veto any proposal
  • Timelock bypass - Only for critical security issues
  • Circuit breakers - Auto-pause on suspicious activity

📚 Resources​

"Governance is not control—it's stewardship. We don't own the DAO; we serve it." 🍄✨