Dora Factory is built around three components: a Polkadot factory, an Ethereum factory, and a virtual bridge. Each DAO comes with its own vault where its funds are stored. DAO participants can deposit assets, withdraw assets, and handle DAO assets.

DORA token in the network:

DAO Staking

To create a DAO, participants stake 100 DORA tokens directly on-chain. When the DAO ends, the staked DORA is released. As the number of DAOs increases and the DORA value changes, a constant staking cost may be needed for new DAO creation. This could be handled through a price oracle using an off-chain worker, or by relying on an existing oracle service from another parachain.

Validator Staking, Mining and Inflation

Dora Factory starts as a POA network and moves to an NPoS model after deployment on Kusama. Validators and nominators keep the parachain running by validating transactions and producing blocks. For this work, validators and nominators receive rewards drawn from inflation. In addition to inflation, they also receive transaction fees, while network fees (tax) paid by users and DAOs are distributed in proportion across all addresses that have staked DORAs.

The inflation schedule is set at 1,000,000 DORAs per year until the community reaches a super majority vote to change it. As a result, unlike Polkadot’s own model, this begins as a linear inflation at 10% in the first year and declines each year. Of the tokens minted through yearly inflation, 2% are directed to a Dora Factory Treasury, and the remaining inflation-minted DORAs are distributed to nominators and validators.

Network Fees (Tax)

Pallets are able to charge fees. DAOs must “burn” DORA tokens (or pay fees) to use pallets (some pallets may be free). Network Fees paid by DAOs are processed as tax within Dora Factory, and the tax is distributed proportionally to all staking addresses.

Network Rewards

Network rewards are paid to validators, pallet developers, and venture builders. Validators receive rewards from both inflation and the tax collected from DAOs. DORA stakers who are not validators receive rewards from the network tax, and developers earn from pallet income.

Transaction Fees

A small transaction fee will apply to all transactions on the parachain. The collected transaction fees will be shared between nominators and validators.

 Governance

Unlike Internet SaaS platforms, Dora Factory is directed by the community of DORA holders, not a company.

There are two governance bodies: the Governance DAO and the Council. The Governance DAO includes all DORA holders. The Council is the core development team, responsible for the project’s roadmap until sudo is removed.

The Governance DAO is produced by Dora Factory. After Dora Factory’s mainnet launch, it will be shown in Dora Factory’s client frontend. All DORA holders are members of the DAO, and all staking addresses can vote on matters (called “DORA Voters”). Governance is relevant in several cases.

Approve Major Parachain Mainnet Upgrade

Any major upgrade to the parachain mainnet (including parachain consensus, governance rules, and mining & staking rules) requires a ⅔ majority vote from DORA Voters.

Approve Community Grants

Ongoing quadratic funding grant rounds will be used to support new ideas that improve the infrastructure and to help create new pallets for Dora Factory. The community can donate DORA to projects it considers important, and a matching fund will be allocated using the quadratic funding method. These community grants will be hosted on HackerLink.

Each quadratic funding community grant must be approved by a simple majority vote from DORA Voters.

Alongside the Governance DAO, Dora Factory also has a Council that handles executing the roadmap and key operational tasks.

The Council can also introduce minor changes and upgrades to the infrastructure, and add pallets following the pallet-adding procedure.

Adding Pallets

Pallets may be built either by Dora Factory developers or by any community developer (group), from anywhere. Mobilizing the developer community to create DAO pallets is a key part of Dora Factory. On Polkadot, pallets can be developed and tested freely on local substrate nodes. After a pallet is added to the parachain, its security must be ensured.

A pallet-whether created by Dora Factory’s core team or by community developers-must complete comprehensive testing and a security audit before it can be submitted to Dora Factory’s testnet. The pallet remains on the testnet for a set period before it can be compiled into Dora Factory’s Polkadot Parachain. This workflow is managed by the council.

Open Grants

The council also manages an open grant program that backs new ideas, proposals, and algorithms for on-chain governance, along with essential DAO pallets and important toolkits. To decide whether to issue an open grant, councillors must reach a simple majority.

Bounties

Users and core developers can propose certain features and improvements. An open bounty program will run on HackerLink. Both core DORAs and community projects can submit bounties. Each bounty is tied to a GitHub issue so that processes can be handled on GitHub. Multiple types of cryptoassets can be used to pay bounties.

Smaller features and improvements that fall outside the scope of open grants may be posted as bounties.

Sudo and Election

Until sudo is removed, councillors are appointed by the Dora Factory Foundation. After sudo is removed, councillors are elected by DORA Voters. The election rules are then hard coded into a governance pallet and incorporated into the Governance DAO. At that stage, Dora Factory moves into full DAO governance.