Mystiko DAO

Decentralization from TGE Day 1 has always been the goal of all early Mystiko.Network contributors.

Since its inception, Mystiko.Network has served as the trustless and extensively decentralized infrastructure for zero-knowledge (ZK) technology within various blockchains. Having proven product-market fit for blockchain’s ZK infrastructure with a platform that has thrived independently, Mystiko.Network is now particularly well positioned for community-led growth, development, and self-sustainability through an autonomous organization, Mystiko DAO.

To sustain Mystiko DAO, the introduction of a wrapped XZK token, the mint-and-burn style vXZK (ERC-20) token serves this purpose. Previously, the XZK token was created as the operational utility and governance token of Mystiko.Network. Today, the genesis of vXZK was inspired by notable peers in the industry including MakerDao, Curve Finance, Compound etc. that had created similar wrapped tokens for voting purposes in their DAO governance. vXZK acts as the voting wrapped token for XZK and enables shared community ownership and a vibrant, diverse, and dedicated Mystiko DAO governance system, which will actively guide Mystiko.Network towards the future.

➡️vXZK contract which can be found on Etherscan at this address: https://etherscan.io/address/0x16aFFA80C65Fd7003d40B24eDb96f77b38dDC96A

❓How does Mystiko DAO govern Mystiko.Network?

Mystiko.Network is the base layer of Web3 and the universal ZK SDK, enhancing the scalability, interoperability, and safety of blockchains. Mystiko’s SDK enables developers to build blockchain applications that reduce costs, scale effortlessly, securely interact across chains, and protect users’ on-chain data (account balances, transaction histories, etc.).

Mystiko.Network was born to be a DAO from day one: an autonomous and decentralized organization building a permissionless code protocol which is open to all and self-executing with no admins or operators.

Mystiko.Network has always embraced trust minimization from day one: it is crucial that governance is constrained to where it is strictly necessary. Therefore, the Mystiko governance framework is limited to contributing to both protocol development and usage as well as development of the broader Mystiko ecosystem. In doing so, XZK wrapped token vXZK officially enshrines Mystiko as publicly-owned and self-sustainable infrastructure while continuing to carefully protect its indestructible and autonomous qualities.

✅Utilizing OpenZeppelin Governor.

In a similar model many projects like MakerDAO, Curve Finance, SushiSwap, and other DAOs follow , we’re utilizing OpenZeppelin Governor, which requires the use of wrapped tokens for voting. OpenZeppelin’s Governor is inherited from Compound’s. This modular system of Governor contracts allows the deployment of on-chain voting protocols similar to Compound’s Governor Alpha & Bravo and beyond, offering the ability to easily customize multiple aspects of the protocol.

🌈Participate and Govern together.

Mystiko Dao website: https://www.tally.xyz/gov/mystiko (please note that any numerical values should be in accordance with the text below)

To participate in Mystiko DAO, XZK holders can simply convert their tokens into vXZK and cast their votes. This is purely essential for practical reasons: you’ll be wrapping your XZK tokens to vXZK in a 1:1 ratio, and you can convert vXZK back to XZK at any time. This way, it ensures seamless participation in the voting process utilizing the OpenZeppelin Governor, while maintaining the flexibility to convert your tokens back to XZK at will. vXZK follows a mint-and-burn model: depositing one XZK mints one vXZK, and withdrawing one XZK burns one vXZK, thus avoiding over-issuing voting tokens.

For those seeking a deeper dive, OpenZeppelin Governor documentation can be found here: https://docs.openzeppelin.com/contracts/5.x/governance

The URL to the OpenZeppelin ERC20Wrapper code: https://github.com/OpenZeppelin/openzeppelin-contracts/blob/v5.0.0/contracts/token/ERC20/extensions/ERC20Wrapper.sol

Mystiko DAO Voting Process v0.1 as of June 14th 2024

Mystiko DAO directly utilizes OpenZeppelin’s Governor framework, ensuring a secure and transparent voting process. Technical, product, and economic decisions are made through staked vXZK token voting.

• Proposal Threshold: Creation of proposals requires at least 1 million vXZK.

• Propose Delay: After every proposal is created, there will be 1 day delay before voting can begin.

• Voting Period: The community can then cast their votes during a 7-day voting period.

• Prevent Late Quorum: In the case the quorum is only reached on the last day, the voting will be extended by one day, allowing the community time to process it, thus ensuring the quorum is not a last-minute occurrence.

• Voting Threshold: If a majority, and a quorum of Max(2M, 15% * vXZK Total Supply) votes are cast (the quorum required is the larger value between 2 million vXZK and 15% of the total vXZK supply), the proposal can be queued (by sending a transaction), and may be executed in a minimum of one hour. The transactions involved can be executed by anyone. This voting threshold is effective from TGE Day 1 to TGE+3 months. The DAO can adjust it based on actual circumstances to achieve better governance.