Bitocracy
Bitocracy is the heart the Sovryn's protocol. It is the mechanism that enables the governance of its code and the incentive to maintain the system through the distribution of dividends.
Last updated
Bitocracy is the heart the Sovryn's protocol. It is the mechanism that enables the governance of its code and the incentive to maintain the system through the distribution of dividends.
Last updated
Bitocracy is based on three basic modules: Staking, Governance and Fee Sharing modules. When a user acquires some SOV asset they are able to put it in a stake position. The position value depends on the time the asset is committed, and the relation between time, asset amount and value is close to - when not exactly - a quadratic function.
Staking: For this, the user needs to approve the handling of the SOV asset to the Staking contract, and then call Staking.stake. This action makes the user into a "staker". The user can withdraw their assets - Staking.withdraw - in any moment, however, there will be a "slashing" or punishment, to which the user agreed in case of withdrawing before the term of the committed date of the staking position. The slashing penalty has a .
Governor: Having a staking position allows the user to vote for a proposal (castVote), and under certain conditions - having a net 1% of current total voting power in all their staking positions - to make a proposal (propose). If a proposal reaches enough votes in favor - the status of the proposal is "succeeded" - anybody can call the function Governor.queue, which prepares the proposal to be executed; and after a delay time window - which is 48 hours for the GovernorOwner and TimelockOwner, and 24 hours for GovernorAdmin and TimelockAdmin - anybody can call the function Governor.execute.
The difference between the GovernorOwner instance of GovernorAlpha - or, just Governor - and GovernorAdmin is the capabilities to execute the actions of a proposal. The "owner" version is destined to any change of code on the whole Sovryn protocol, while the "admin" version is destined to the manage of funds.
Timelock: This contract filters if a set of actions coming from a proposal have the enough clearance to be executed. Only the Governor can call Timelock.executeTransaction, and only Timelock has the authority to perform changes on Sovryn's code and manage some funds from certain pools.
Fee Sharing: The contract FeeSharingCollector rewards with revenues and profits coming from the fees collected in the Sovrn protocol to all stakers. As the Governor contract, the FeeSharingCollector makes internal calls to the Staking contract to be able to estimate the proper amount of funds a staker, based on a parameter from which the proper share of fees is calculated. In the case of the Governor, it allows to estimate the voting power, by the moment of casting a vote.
Vesting: Not shown in the former diagram, the Vesting sub-set of the staking protocol, is a method to reward users, Sovryn's core team and other contributors that participate in several programs that community regards valuable. But instead of rewarding these people with liquid SOV assets, the SOV is delivered under a "vesting" schedule.
The StakingModuleProxy contract (named ModulesProxy) is itself a logic for the StakingProxy contract because its the storage is used.
Therefore the current Staking functions call flow as follow:
The most common functions to call staking are staking.stake and staking.withdraw.
The GovernorAlpha contracts and its instances: GovernorOwner and GovernorAdmin are in the core of the Bitocracy mechanics. Through a set of proposals, and voting on them, Sovryn's community decides how the protocol evolves and funds should be assigned.
The most common function to call are GovernorAlpha.propose, GovernorAlpha.castVote, GovernorAlpha.queue and GovernorAlpha.execute.
The most common function to call are FeeSharingCollector.withdraw and FeeSharingCollector.claimAllCollectedFees.
Vesting contracts are created through VestingRegistry.createVestingAddr. The entities authorized to execute this action are the TimelockOwner or any of the admins delegated by the exchequer.
The staking contract involve a set of modules linked to proxies through the implementation.
It's a fee distributor among stakers, and according the weight of their stakes. This weight changes through time, and that's why the calculation method of claimable fees depends on predetermined "checkpoints" in time. This makes claim transactions heavy, and the had to be completed with an additional helper function.