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Documentation

Background: Protocol Guild's V1 Architecture

For Protocol Guild's 1-year pilot, the smart contract architecture used 0xSplits to manage all funds, including both the vesting of donated funds and distribution of vested funds to members:

  1. Donations
    • Anyone can send ETH and ERC-20 tokens to the Guild's Vesting contract address on mainnet.
      • NFT donations are not supported - standard NFT transfers (safeTransfer) will be rejected by the contract, i.e. will cause the transaction to fail. Non-safeTransfer NFT donations will be lost.
      • Funds donated on L2s were bridged over to mainnet.
  2. Vesting
    • Whenever funds are added to the 0xSplits Vesting contract, a "stream" needs to be started to begin the vesting process.
      • Starting a stream is permissionless.
      • Any funds donated during the pilot vest over 1 year (from the point the stream is started).
  3. Distributions
    • Donated funds which are vested need to be "released" in 0xSplits. Releasing vested funds pushes them to the Guild's Split contract
      • Releasing funds is permissionless.
    • To withdraw funds released into the Split contract, 0xSplits first requires to "Distribute" the funds (among all the Split's recipients), at which point the Split's recipients can "Withdraw" the funds.
      • There is a function to "Withdraw for myself" and "Withdraw for all".
      • Distribute and withdraw functions can be done separately, or combined into one transaction. Again both functions are permissionless.

Managing 0xSplits

While the Guild's Vesting contract is immutable, the Split contract can be updated by the Guild's 6/10 Safe multisig. The multisig can be used to add / remove members from the Split contract, and change the % allocation to members. The % allocation is determined by a weighting formula:

= SQRT((eligibleMonths - monthsOnBreak) * timeWeighting)

The "timeWeighting" multiplier is 0.5 for part time contributors, and 1 for full time contributors. The goal of the weighting formula is to reduce the total variance range of every member weight (hence using a square root).

Updating the Split contract is a manual process. The membership list is kept in an offchain, permissioned Airtable using formulas to keep track of the weighting, based on member start dates and status (full time / part time). Updates to the membership are made quarterly. To update the Split contract, the multisig is used to import a CSV from the Airtable into the Split contract, which updates member addresses and their weights.

If someone is removed from the Split contract, they still have access to the funds distributed to them before being removed. But they will not receive any future vested funds.

If someone new is added to the Split contract, they will be eligible for their share of vested funds distributed from that point onward (i.e. will not have a claim on previously distributed funds).

PG NetworkRegistry Sequence Diagram

Sequence Diagram