Parties will consist of members, whose personal wallets are integrated to the parties wallet. Depending on party set criteria when being created, parties will consist of members who have voting power and some who do not have voting power. But, both sets of personnel are able to contribute capital to the party wallet, and gain returns from the overall party actions! Nevertheless, party members are still able to contribute actionable manners without having voting power, due to implemented P2P functionalities for organic party chatter and research.
Though, the only difference between the two distinct personnel (Voting power vs. No Voting Power) will result in how wallet addresses with voting power will ultimately be able to provide party guidance by voting actions (dependent upon the type of party model).
Public/Private Parties (HouseKeys):
HouseKeys are generated for all users that create a party (Public or Private), though when viewing public parties on the main dashboard within the PolkaParties Portal, you will be able to join the party seamlessly (HouseKeys are turned into a input function “button” that then prompts a transaction in Web3 Browser).
Private parties require the HouseKey to join the party (HouseKey is required to sign the smart contract, so your wallet will be integrated to the party wallet).
Preferred Example: Influencer creating a specific party for himself and his respective following & community to join.
- Private party invitations are sent to a wallet address to be validated on a whitelist form within the private party’s setting dashboard.
- UI (party setting) → (add wallet) then wallet is added to the whitelist pallet.
What are Distribution Periods?
Due to the nature of party’s (DAO’s), and full reliance of having a seamless governance experience for users, PolkaParty has constructed a time interval based model which permits party’s that are created to allow for Partygoers to be able to withdraw funds within a placed time period, which was set when the party was originally created. In these distinct time periods, users are able to withdraw their respective funds + gains that are allocated to their wallet that is connected to the party. From the actions of the party, a users will be given a Daily, Monthly, or Yearly + Fund Withdrawal Time Sequence, to withdraw profits back to a personal wallet.
What are Party Fouls?
Penalty for withdrawing funds early before time interval of distribution for party members. As there will be times for Partygoers to withdraw funds before distribution periods, PolkaParty permits these actions from a consistent rate that is corresponding to the time interval base, which is set originally for the party. In a more simple explanation, Partygoers who withdraw funds outside of the distribution period will receive less of a fee when leaving lesser days out, respective to the every distribution period.
Fees for leaving before a distribution period: Fee is on a sliding 90 day range
Minimum Fee (Day 1): 00.17% -> Maximum fee (Day 90): 37.2%
(An example diagram located below)
Democratic parties use multisig wallets as a form of governance in which each registered, active, address is entitled to confirmation of transactions sent to the EVM. This is one of the most technically basic forms of party governance. It works by logging a proposed transaction hash for the party and turning this information into a vote.
Weighted Democratic models aim to provide alternative solutions to fund governance. In this model users hold private interest in a party and can track their percentage of Party Power. It is simple, the higher proportion of the party that a partygoers owns the more power he has over governing votes.
Technically, a weighted party could be compared to a LP pool. The more of the pool you own the higher your percentage of payouts, rewards, and party benefits. Reminder, Party benefits and payouts are set up by the parties themselves whereas large centralized rewards and contests will be created by PolkaParty’s central party.
A monarchy is the simplest and most risky type of party. Here at PolkaParty we believe in decentralization and equality, with this in mind, we allow Parties to be made that give all of the Party’s governance to be given to one wallet, the Monarchs.
We see this governance model used by highly reputable individuals and influencers. Do not join a Monarchy if the Monarchy is owned by someone Anonymous or possibly untrusted character in the space.
This governance model is the pinnacle of PolkaParty’s innovation, since it allows a body of representatives create and manage their own funds. PolkaParty is heavily focused upon creating a universal experience of properly and sufficiently allocating funds to at-large investments.
It has become something of an expectation in the emerging sector of DeFi that decentralized exchanges and financial instruments are governed in a decentralized fashion with models inspired by DAOs. As we covered different models that ultimately are the essence of DAOs, and the ways that they are able to create structure and decentralized governance, the use-cases for DAOs are already multifold as the space is rapidly expanding.
We believe DAOs, smart contract, and tokenization will unlock powerful decentralized organizations that place power into the hands of stakeholders and the community.