Governance Contract

Author: Dylan, Avinasi Labs

The Governance contract merges treasury custody, LP management, and voting into a single per-IDO instance.

State Variables

Core binding:

• ido - Associated IDO contract address (single source of truth)

• usdc - USDC token for treasury/refunds

• governanceStrategy - Current voting strategy (initially address(this))

Treasury:

• treasuryBalance - Available USDC for project operations

• Incremented when IDO deposits, decremented when Funding proposals execute

LP management:

• lpToken - Uniswap V2 pair address

• lpAmount - Locked LP token count

• isDelisted - Whether delisting has executed

• uniswapV2Router / uniswapV2Factory - Uniswap addresses for liquidity removal

Delisting refund:

• refundPoolUSDC - Total USDC available after delisting (treasury + LP recovery)

• refundPoolTokenSupply - Token supply snapshot at delisting

• hasClaimedRefund[user] - Refund claim tracking

Proposals:

• proposals[] - Array of all proposals

• hasVoted[proposalId][voter] - Vote tracking

Constants

Voting period: 7 days (VOTING_PERIOD)

Proposal threshold: 1% of total supply (PROPOSAL_THRESHOLD = 100 basis points)

Quorum requirement: 50% simple majority (QUORUM_THRESHOLD = 5000 basis points)

All proposals require explicit FOR votes ≥ 50% of total supply to pass.

Proposal Types

Funding Proposals

Token holders propose treasury withdrawals:

• amount - USDC amount to withdraw

• recipient - Receiving address (typically project multisig)

• description - Justification (e.g., "Q1 2024 operational costs")

Execution transfers USDC from Governance treasury to recipient if passed.

Pricing Proposals

Token holders adjust rental hourly rate:

• newPrice - New hourly rate in USDC (6 decimals)

• description - Rationale (e.g., "Reduce to $8/hour for competitive pricing")

Execution calls IDO.updateHourlyRate(newPrice) if passed.

Delist Proposals

Token holders vote to shut down project and refund capital:

• description - Reasoning (e.g., "Project abandoned, no development for 6 months")

Execution:

1. Removes Uniswap liquidity (burns LP tokens, recovers USDC + remaining dataset tokens)

2. Burns recovered dataset tokens

3. Combines recovered USDC with treasury balance = refundPoolUSDC

4. Records refundPoolTokenSupply = current total supply

5. Sets isDelisted = true

6. Token holders then call claimDelistRefund() individually

GovernanceUpgrade Proposals

Token holders replace voting strategy with external contract:

• newStrategy - Address implementing IGovernanceStrategy interface

• description - Explanation (e.g., "Upgrade to quadratic voting")

Execution sets governanceStrategy = newStrategy. Future proposals use new strategy's rules.

Proposal Creation

Users call createFundingProposal, createPricingProposal, createDelistProposal, or createGovernanceUpgradeProposal.

Requirements:

• Caller holds ≥ 1% of total supply (via getPastVotes at block.number - 1)

• Proposal parameters valid (non-zero amounts, valid addresses)

The contract creates Proposal struct with:

• Unique ID (proposals.length)

• Proposal type and parameters

• Snapshot block number (block.number - 1)

• Total supply snapshot

• Start/end times (now, now + 7 days)

• Status = Pending

Voting

Token holders call castVote(proposalId, support) where support is true (FOR) or false (AGAINST).

Requirements:

• Proposal in Pending status

• Current time before endTime

• Voter has not voted on this proposal

• Voter held tokens at snapshot block

Vote weight = getPastVotes(voter, proposal.snapshotBlock).

The contract records vote, increments proposal.forVotes or proposal.againstVotes, and marks hasVoted[proposalId][voter] = true.

Execution

Anyone calls executeProposal(proposalId) after voting period ends.

Quorum check:

$$\text{Passes} = (\text{forVotes} \times 10000) / \text{totalSupply} \geq 5000$$

If passes:

• Status = Executed

• Execute type-specific logic (transfer USDC, update price, delist, or upgrade strategy)

If fails:

• Status = Defeated

• No state changes

Delisting Refund Calculation

After delisting execution, token holders call claimDelistRefund():

$$\text{Refund} = \frac{\text{User Balance} \times \text{refundPoolUSDC}}{\text{refundPoolTokenSupply}}$$

The contract:

1. Calculates proportional refund

2. Burns user's tokens

3. Transfers USDC refund

4. Marks hasClaimedRefund[user] = true

This proportional distribution ensures fair capital recovery based on token holdings at delisting.

Treasury Operations

Deposit - Only IDO can call depositFunds(amount) during launch to transfer project treasury allocation.

Withdrawal - Only executed Funding proposals can withdraw via internal _executeFunding function.

Query - Anyone can read treasuryBalance to see available project funds.

The treasury has no admin functions, privileged roles, or emergency withdrawals. Only governance votes can move funds.

LP Lock Verification

Lock - Only IDO calls lockLP(lpTokenAddress, lpAmount) during launch.

Unlock - Only executed Delist proposals unlock via internal _executeDelist function.

Verify - Anyone can check lpToken.balanceOf(governance) on-chain to confirm LP custody.

The Governance contract never approves external contracts to access LP tokens except during delisting removal execution.

Strategy Pattern

When governanceStrategy == address(this), the contract uses internal default strategy (simple majority).

When governanceStrategy != address(this), the contract delegates execution checks to external strategy implementing:

function canExecute(proposalId) external view returns (bool);

This enables quadratic voting, conviction voting, or other mechanisms without redeploying Governance.

Security Features

Snapshot voting - Prevents flash loan attacks and double voting.

One vote per address - hasVoted mapping prevents multiple votes.

No admin functions - No privileged roles that could bypass voting.

Immutable binding - IDO address set at initialization, never changes.

Timelock - 7-day voting period gives token holders time to react to malicious proposals.

Events

Proposal creation:

• FundingProposalCreated

• PricingProposalCreated

• DelistProposalCreated

• GovernanceUpgradeProposalCreated

Voting:

• VoteCast(voter, proposalId, support, weight)

Execution:

• ProposalExecuted(proposalId, proposalType)

• FundsWithdrawn(proposalId, recipient, amount)

• PriceUpdated(proposalId, newPrice)

• DatasetDelisted(timestamp, refundPoolUSDC, refundPoolTokenSupply)

Treasury:

• FundsDeposited(amount, totalBalance)

LP:

• LPLocked(lpToken, amount)

• LPRemoved(lpToken, usdcRecovered, tokensRecovered)

Off-chain indexers monitor these events to track governance activity and treasury movements.