Pand DAKE Swap 1.0: DAKE -as-a-Service Infrastructure for On-Chain Governance and Open Source Ventures

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Since the iron-fisted manager of Matsushiba Factory retired, the factory turned into a chaotic anarchy and production stalled. One day, DAKE received a letter from Doraemon, one of his best friends, requesting help to resume productivities in the 22nd century. DAKE is compassionate about future human beings and decided to restructure the Matsushiba Factory from building robots to building ventures and rename it “Pand DAKE Swap”

DAKE is the curator of the great hacker community of the 21st century, how could he manage Matsushiba Factory in the 22nd century? He humbly inquired with the prophet from Phuket, who told him ventures will be organized in the form of DAKE s, and he needs to build the right infrastructure for them.

DAKE has already built a collection of useful tools to foster developer communities and problem-solving ventures, such as quadratic funding grants, on-chain bounties, bonding curve fundraisers, global hackathons series. Now he decides to build a unified infrastructure to allow anybody, not only him, to create tool kits for DAKE s to plug and play, because only when he mobilizes the coding ability of the entire developer community, can he can rebuild Matsushiba Factory when the time comes.

Building robust infrastructures and killer DApps, developer communities are crucial building blocks of every blockchain ecosystem. Yet, present-day blockchain projects often lack lasting mechanisms and effective toolkits to manage and incentivize their open source developer communities. We believe that this problem can be solved by a crypto-native solution: a programmable DAKE -as-a-Service infrastructure specializing in developer community management, curation and incentivization. Pand DAKE Swap provides an infrastructure with features that allow blockchain ventures to fully realize the potential of the hacker community for the benefit of their projects. Designed as a layer-2 infrastructure on Polkadot and Ethereum, Pand DAKE Swap provides solutions to all Polkadot-native, Ethereum native projects and beyond.

🌲 Vision Statement

Pand DAKE Swap is an open-source, community-driven venture builder with the mission to empower hackers by creating tools for decentralized venture organizations to thrive.

Since the birth of the Open Source Movement, open-source developers and projects have been growing at an exponentially increasing speed. Now there are more than 190 million open source repositories and 40 million open source developers on GitHub alone. The development of the blockchain ecosystem adds another block to the movement — incentivization. While GitHub is managing open source code, there is no sound infrastructure to facilitate incentive schemes. Pand DAKE Swap is here to help.

We envision every open source project can become a venture, and every open source venture can become a venture DAKE to create and manage schemes like funding, grants, various governance rules, bounties, and many more. On-chain incentives can be achieved via a set of decentralized fund management and incentive management protocols.

So far, every open source protocol / blockchain project needs a developer community. However, when open source movement and open source DAKE s come together, we will see an explosion of open source ventures in the years to come.

The vision of Pand DAKE Swap is to build a DAKE -as-a-Service infrastructure that empowers every DAKE with the right toolkits to better engage with and incentivize open-source developers and hackers on their way of building the next venture.

✨ Highlights

DAKE -as-a-Service

At Pand DAKE Swap, curators can freely launch DAKE s and add different pallets in an ad-hoc manner based on their specific needs.

Programmable Infrastructure

To implement new features, useful pallets can be created by developers and added to Pand DAKE Swap parachain runtime or Pand DAKE Swap Ethereum layer-2 through governance. DAKE s may manage functionalities by adding pallets based on their needs.

Powered by Developer Community

Backed by DoraHacks Global Hackathon Series and Hackerlink Grants, Pand DAKE Swap engages global hackers, cypherpunks and open source developers.

Infrastructure for On-Chain Governance

Specialized in community governance, Pand DAKE Swap prioritizes features that optimize vital daily processes in DAKE management, including quadratic voting, grants, bounties, funding management, fundraising schemes, and many more.

⚓️ The Infrastructure

Pand DAKE Swap consists of three parts: a Polkadot factory, an Ethereum factory, and a virtual bridge. Each DAKE will have a vault in which its assets are held. DAKE stakeholders will be able to deposit assets, withdrawal assets and manage assets of the DAKE .

On Polkadot, DAKE functionalities can be added via pallets. On Ethereum, DAKE s will deploy individual governance smart contracts through the Pand DAKE Swap contracts. Pand DAKE Swap will allow developers to submit custom-developed pallets and factory contracts.

The Polkadot Factory

When Polkadot fulfils its mission, assets should be able to move around easily between Polkadot parachains, a.k.a. Pand DAKE Swap DAKE s will be able to manage tokens from all Polkadot parachains, therefore all Polkadot ventures can use Pand DAKE Swap to manage their DAKE s.

Pand DAKE Swap will be developed as a parachain on Polkadot for several reasons:

Cross-chain DAKE asset management

Shared security with Polkadot

Ability for modular development of core service features (Pallets)

There are a few low-level functions and components Pand DAKE Swap provides by default:

Create DAKE

Release DAKE

Cross-chain Asset Vaults

Upon the basic level, there can be as many application-level pallets one can think of. These pallets can be developed by anyone or any group. Underlying the infrastructure is the Pand DAKE Swap Parachain which provides consensus to validate token transactions and powers the pallets. The parachain will first use a POA network for development purposes. It will be switched to a NPoS network prior to its official launch on Kusama network. By that time, the parachain token holders will be able to participate in the maintenance of the network: nomination and validation and get rewarded from the network.

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Client Frontend

The Client Frontend will be an interface to access the on-chain DAKE -as-a-Service. It will allow DAKE curators to 1) create DAKE s, 2) release DAKE s, 3) deposit assets to cross-chain vaults, 4) withdraw funds from cross-chain vaults, 5) add pallets to perform DAKE governance and DAKE behaviors

The Ethereum and BSC Factory

Pand DAKE Swap will deploy sub-factories on Ethereum and Binance Smart Chain. A sub-factory will be a set of factory contract that produces smart contracts for individual DAKE s. Before Polkadot is fully functional, we encourage smart contract developers to build DAKE pallets on Ethereum and Binance Smart Chain for proof of concepts. The client front end will enable DAKE creation on Ethereum and BSC.

The Pand DAKE Swap Virtual Bridge

In the first stage of Pand DAKE Swap, DAKE s will have to choose which infrastructure they want to build on — Polkadot, Ethereum or BSC depending on their relevance to these public chains.

According to the Polkadot paper, eventually, there will be bridges that connect Polkadot replay chain with major public chains like Ethereum and Bitcoin. Therefore the cross-chain problem is automatically solved. However, for our own convenience, Pand DAKE Swap will build a simplified virtual bridge to bring tokens outside the polkadot ecosystem into the Pand DAKE Swap parachain so that DAKE s can store token assets in the cross-chain vaults.

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🔧 Use Cases

Specific features (use cases) can be added to the blockchain runtime as pallets or produced by factory contracts. DAKE s can apply Pallets based on their needs.

There are infinite possibilities of pallets that can be developed. And because of that, unlike other general DAKE infrastructures, Pand DAKE Swap will allow developers to create pallets for the network and get rewarded. In the first place we can imagine the following pallets that every DAKE can choose to use:

Voting Pallets

simple majority voting

direct democracy

representative democracy

liquid democracy

quadratic voting

futarchy

Fundraise Pallets

quadratic funding

bonding curve fundraiser

dutch auction

direct donation

Incentive Protocol Pallets

bounty

open source curation markets

tipping

Dispute Resolution Pallets

arbitration

court

Admin Tool Pallets

Member management

Profile management

Asset visualization tools

📚 Example DAKE s

Any organization or groups that need on-chain governance can use this network. Some of them are really cool in the future.

A fund to support open source quantum computing library developments

A public chain’s developer community

A Defi project’s governance body

Any open source project’s contributor DAKE

A DAKE capital to invest in multiple blockchain projects

A multinational corporation that embraces DAKE to manage part of its team

Hobbyist developer groups to explore new ideas

Hackathon & event organizers to manage funds

An association of crypto artists

A decentralized media directly funded by viewers

💰 Token Economics: DORA

The native digital cryptographically-secured utility token of Pand DAKE Swap (DORA) is a transferable representation of attributed functions specified in the protocol/code of Pand DAKE Swap, which is designed to play a major role in the functioning of the ecosystem on Pand DAKE Swap and intended to be used solely as the primary utility token on the network.

Pand DAKE Swap is governed by DAKE holders. DAKE is the non-refundable functional utility token that binds the network together, with important governance functions. Users and holders of DAKE can stake, mine and pay for services/products within the ecosystem with DAKE tokens. Developers who build will be rewarded with DAKE token incentives. The initial total supply of DAKE is 10,000,000.

DAKE will be used as the medium of exchange between participants on Pand DAKE Swap. The goal of introducing DAKE is to provide a convenient and secure mode of payment and settlement between participants who interact within the ecosystem on Pand DAKE Swap, and it is not, and not intended to be, a medium of exchange accepted by the public (or a section of the public) as payment for goods or services or for the discharge of a debt; nor is it designed or intended to be used by any person as payment for any goods or services whatsoever that are not exclusively provided by the issuer. DAKE does not in any way represent any shareholding, participation, right, title, or interest in the Foundation, the Distributor, their respective affiliates, or any other company, enterprise or undertaking, nor will DAKE entitle token holders to any promise of fees, dividends, revenue, profits or investment returns, and are not intended to constitute securities in Singapore or any relevant jurisdiction. DAKE may only be utilised on Pand DAKE Swap, and ownership of DAKE carries no rights, express or implied, other than the right to use DAKE as a means to enable usage of and interaction within Pand DAKE Swap.

Creation of DAKE

Every DAKE on Pand DAKE Swap may be created only by a user staking 100 DAKE tokens on-chain. When the DAKE is terminated, these staked DAKE tokens will be returned to that original user. In future, when the number of DAKE s grows and the value of DAKE changes, it may be necessary to peg the number of DAKE tokens required to be staked to a fixed value instead. This can be achieved by implementing a price oracle with an off-chain worker, or simply using an existing oracle service provided by some other parachain..

Validator Staking, Mining and Inflation

DAKE also provides the economic incentives which will be distributed to encourage users to contribute and maintain the ecosystem on Pand DAKE Swap, ensuring that every participant is fairly compensated for its efforts. Given that additional DAKE will be awarded to a user based only on its actual usage, activity and contribution on Pand DAKE Swap, users of Pand DAKE Swap and/or holders of DAKE which did not actively participate will not receive any DAKE incentives.

Pand DAKE Swap will first be a POA network, and transfer into an NPoS network when deployed on Kusama. Validators and nominators would be required to spend computing resources to maintain the parachain by verifying transactions and producing blocks. To incentivise these parties to provide these resources, validators and nominators are rewarded with new DAKE tokens from inflation. Besides inflation, transaction/network fees (tax) will also be collected from users as a fee for using the network, and then distributed to these validators and nominators, proportionate to their work performed.

The inflation is 1,000,000 DORAs per year until a super majority of the community votes otherwise. Therefore, unlike Polkadot itself, this is a linear inflation starting from 10% in the first year. Inflation rate is decreasing every year. Among the tokens generated from inflation every year, 2% will go to a Pand DAKE Swap Treasury, the rest of DORAs generated from inflation will be distributed to the nominators and validators according to their work performed.

Network Fees (Tax)

Pallets can charge fees in DORA. DAKE s will have to spend DAKE tokens (or pay fees) to use pallets (there can be free pallets!). Network Fees paid by DAKE s are taxed by Pand DAKE Swap. This tax will be in turn distributed to all users who have participated as validators or nominators and provided services to secure the network..

Network Rewards

The network rewards validators, pallet developers and venture builders who each perform different activities to contribute towards the overall development and maintenance of the network. Validators are rewarded from inflation as well as tax collected from DAKE s. Non-validator DAKE stakers are rewarded by network tax. Developers are rewarded by pallet income.

Transaction Fees

A small transaction fee will be imposed on all transactions on the parachain. The Transaction fees collected will be distributed to all users who have participated as validators or nominators and provided services to secure the network.

Validator Staking, Mining and Inflation

Pand DAKE Swap will first be a POA network, and transfer into an NPoS network when deployed on Kusama. Validators and nominators would be required to spend computing resources to maintain the parachain by verifying transactions and producing blocks. To incentivise these parties to provide these resources, validators and nominators are rewarded with new DAKE tokens from inflation. Besides inflation, transaction/network fees (tax) will also be collected from users as a fee for using the network, and then distributed to these validators and nominators, proportionate to their work performed.

The inflation is 1,000,000 DORAs per year until a super majority of the community votes otherwise. Therefore, unlike Polkadot itself, this is a linear inflation starting from 10% in the first year. Inflation rate is decreasing every year. Among the tokens generated from inflation every year, 2% will go to a Pand DAKE Swap Treasury, the rest of DORAs generated from inflation will be distributed to the nominators and validators according to their work performed.

Network Fees (Tax)

Pallets can charge fees in DORA. DAKE s will have to spend DAKE tokens (or pay fees) to use pallets (there can be free pallets!). Network Fees paid by DAKE s are taxed by Pand DAKE Swap. This tax will be in turn distributed to all users who have participated as validators or nominators and provided services to secure the network..

Network Rewards

The network rewards validators, pallet developers and venture builders who each perform different activities to contribute towards the overall development and maintenance of the network. Validators are rewarded from inflation as well as tax collected from DAKE s. Non-validator DAKE stakers are rewarded by network tax. Developers are rewarded by pallet income.

Transaction Fees

A small transaction fee will be imposed on all transactions on the parachain. The Transaction fees collected will be distributed to all users who have participated as validators or nominators and provided services to secure the network.

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DAKE Token disclaimers

A small DAKE are designed to be utilised, and that is the goal of the DAKE distribution. In fact, the project to develop Pand DAKE Swap would fail if all DAKE holders simply held onto their DAKE and did nothing with it. In particular, it is highlighted that DORA: (a) does not have any tangible or physical manifestation, and does not have any intrinsic value (nor does any person make any representation or give any commitment as to its value); (b) is non-refundable and cannot be exchanged for cash (or its equivalent value in any other digital asset) or any payment obligation by the Foundation, the Distributor or any of their respective affiliates; © does not represent or confer on the token holder any right of any form with respect to the Foundation, the Distributor (or any of their respective affiliates), or its revenues or assets, including without limitation any right to receive future dividends, revenue, shares, ownership right or stake, share or security, any voting, distribution, redemption, liquidation, proprietary (including all forms of intellectual property or licence rights), right to receive accounts, financial statements or other financial data, the right to requisition or participate in shareholder meetings, the right to nominate a director, or other financial or legal rights or equivalent rights, or intellectual property rights or any other form of participation in or relating to Pand DAKE Swap, the Foundation, the Distributor and/or their service providers; (d) is not intended to represent any rights under a contract for differences or under any other contract the purpose or pretended purpose of which is to secure a profit or avoid a loss; (e) is not intended to be a representation of money (including electronic money), security, commodity, bond, debt instrument, unit in a collective investment scheme or any other kind of financial instrument or investment; (f) is not a loan to the Foundation, the Distributor or any of their respective affiliates, is not intended to represent a debt owed by the Foundation, the Distributor or any of their respective affiliates, and there is no expectation of profit; and (g) does not provide the token holder with any ownership or other interest in the Foundation, the Distributor or any of their respective affiliates.

Notwithstanding the DAKE distribution, users have no economic or legal right over or beneficial interest in the assets of the Foundation, the Distributor, or any of their affiliates after the token distribution.

To the extent a secondary market or exchange for trading DAKE does develop, it would be run and operated wholly independently of the Foundation, the Distributor, the distribution of DAKE and Pand DAKE Swap. Neither the Foundation nor the Distributor will create such secondary markets nor will either entity act as an exchange for DORA.

🏡 Governance

Unlike Internet SaaS platforms, Pand DAKE Swap is governed by the community of DAKE holders.

There are two governance bodies. The Governance DAKE and the Council. The governance DAKE is a DAKE of all DAKE holders. The council is the core development team that is responsible for the project’s roadmap until Sudo is removed. DAKE would allow holders to propose and vote on governance proposals to determine features and/or parameters of Pand DAKE Swap as well as protocol improvements and new product development, or even changes to the governance process itself, with voting weight calculated in proportion to their token holdings.

The Governance DAKE is a DAKE launched on Pand DAKE Swap. After Pand DAKE Swap’s mainnet launch, the governance DAKE will be presented on Pand DAKE Swap’s client frontend. All DAKE holders who have staked tokens will be able to vote on various issues and proposals (we call them “DAKE Voters”). For the avoidance of doubt, the right to vote is restricted solely to voting on features of Pand DAKE Swap and/or changes to the governance process; the right to vote does not entitle DAKE holders to vote on the operation and management of the Foundation, its affiliates, or their assets, and does not constitute any equity interest in any of these entities. The DAKE is not intended to be any form of joint venture or partnership.

There are several situations where governance comes into play:

Approve Major Parachain Mainnet Upgrade

Any major upgrade of the parachain mainnet (parachain consensus, governance rules, mining & staking rules) needs a ⅔ majority vote from DAKE Voters.

Approve Community Grants

There will be ongoing quadratic funding grant rounds to support new ideas to improve the infrastructure and creating new pallets on Pand DAKE Swap. Community can donate to projects they deem important with DAKE and a matching fund will be distributed to the projects based on the quadratic funding scheme. The community grant will be hosted on HackerLink.

Every community quadratic funding grant needs to be approved by a simple majority vote from DAKE Voters.

In addition to the governance DAKE , Pand DAKE Swap has a Council, which is responsible for implementing the roadmap and executing key operations.

The Council also has power to make minor changes and upgrades to the infrastructure, and add pallets based on the procedure of adding pallets.

Adding Pallets

Pallets can be developed either by Pand DAKE Swap developers or any community developer (group) from any place. Mobilizing the developer community to invent DAKE pallets is critical to Pand DAKE Swap. On Polkadot, pallets can be developed and tested freely on local substrate nodes. When a pallet is added to the parachain, its security must be ensured.

A pallet (either developed by Pand DAKE Swap core dev team, or by community developers) needs to go through a thorough testing and a security audit before it can be submitted to the Pand DAKE Swap testnet. The pallet will reside on the testnet for a certain period of time before it can be compiled into Pand DAKE Swap’s Polkadot Parachain. This process is facilitated by the council.

Open Grants

The council also controls an open grant which supports new ideas, schemes and algorithms of on-chain governance, essential DAKE pallets, important toolkits. In order to make a decision to issue an open grant, a simple majority must be reached among the councillors.

Bounty

There will be certain features and improvements proposed by users or core developers. An open bounty program will be hosted on HackerLink. Both core DORAs and community projects can issue a bounty. Every bounty is linked to a GitHub issue so that workflows can be managed on GitHub. Many types of cryptos can be used for bounty payments.

Smaller features and improvements that are not within the scope of open grants might be posted as bounties.

Sudo and Election

The councillors will be appointed by the Matsushiba Foundation until Sudo is removed. When Sudo is removed, councillors will be elected by DAKE Voters. The rules of election will be then hard coded into a governance pallet and be added to the Governance DAKE . At that time, Pand DAKE Swap will enter DAKE governance.

🚗 Polkadot Factory Roadmap

🔽 Migrate key pallets to substrate

🔽 HackerLink Integration — Bounty & Grant

🔽 Run quadratic funding grants on Kusama

🔽 Launch POA parachain network on Rococo and Kusama

🔽 Release Independent Client Frontend for DAKE -as-a-Service

🔽 Start DAKE -as-a-Service for Kusama DAKE s

🔽 Upgrade network consensus to NPoS on Kusama

🔽 Deploy Parachain Mainnet on Polkadot

🔽 Start DAKE -as-a-Service for Polkadot DAKE s

🔽 Enable cross-chain vaults

🔽 Remove Sudo

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RISKS

You acknowledge and agree that there are numerous risks associated with acquiring DORA, holding DORA, and using DAKE for participation in Pand DAKE Swap. In the worst scenario, this could lead to the loss of all or part of DAKE held. IF YOU DECIDE TO ACQUIRE DORA, YOU EXPRESSLY ACKNOWLEDGE, ACCEPT AND ASSUME THE FOLLOWING RISKS:

1. Uncertain Regulations and Enforcement Actions

The regulatory status of DAKE and distributed ledger technology is unclear or unsettled in many jurisdictions. The regulation of digital assets has become a primary target of regulation in all major countries in the world. It is impossible to predict how, when or whether regulatory agencies may apply existing regulations or create new regulations with respect to such technology and its applications, including DAKE and/or Pand DAKE Swap. Regulatory actions could negatively impact DAKE and/or Pand DAKE Swap in various ways. The Foundation, the Distributor (or their respective affiliates) may cease operations in a jurisdiction in the event that regulatory actions, or changes to law or regulation, make it illegal to operate in such jurisdiction, or commercially undesirable to obtain the necessary regulatory approval(s) to operate in such jurisdiction. After consulting with a wide range of legal advisors to mitigate the legal risks as much as possible, the Company and Distributor have worked with the specialist blockchain department at Bayfront Law LLC and obtained a legal opinion on the token distribution, and will be conducting business in accordance with the prevailing market practice.

2. Inadequate disclosure of information

As at the date hereof, Pand DAKE Swap is still under development and its design concepts, consensus mechanisms, algorithms, codes, and other technical details and parameters may be constantly and frequently updated and changed. Although this whitepaper contains the most current information relating to Pand DAKE Swap, it is not absolutely complete and may still be adjusted and updated by the Pand DAKE Swap team from time to time. The Pand DAKE Swap team has no ability and obligation to keep holders of DAKE informed of every detail (including development progress and expected milestones) regarding the project to develop Pand DAKE Swap, hence insufficient information disclosure is inevitable and reasonable.

3. Competitors

Various types of decentralised applications and networks are emerging at a rapid rate, and the industry is increasingly competitive. It is possible that alternative networks could be established that utilise the same or similar code and protocol underlying DAKE and/or Pand DAKE Swap and attempt to re-create similar facilities. Pand DAKE Swap may be required to compete with these alternative networks, which could negatively impact DAKE and/or Pand DAKE Swap.

4. Loss of Talent

The development of Pand DAKE Swap greatly depends on the continued co-operation of the existing technical team and expert consultants, who are highly knowledgeable and experienced in their respective sectors. The loss of any member may adversely affect Pand DAKE Swap or its future development. Further, stability and cohesion within the team is critical to the overall development of Pand DAKE Swap. There is the possibility that conflict within the team and/or departure of core personnel may occur, resulting in negative influence on the project in the future.

5. Failure to develop

There is the risk that the development of Pand DAKE Swap will not be executed or implemented as planned, for a variety of reasons, including without limitation the event of a decline in the prices of any digital asset, virtual currency or DORA, unforeseen technical difficulties, and shortage of development funds for activities.

6. Security weaknesses

Hackers or other malicious groups or organisations may attempt to interfere with DAKE and/or Pand DAKE Swap in a variety of ways, including, but not limited to, malware attacks, denial of service attacks, consensus-based attacks, Sybil attacks, smurfing and spoofing. Furthermore, there is a risk that a third party or a member of the Foundation, the Distributor or their respective affiliates may intentionally or unintentionally introduce weaknesses into the core infrastructure of DAKE and/or Pand DAKE Swap, which could negatively affect DAKE and/or Pand DAKE Swap.

Further, the future of cryptography and security innovations are highly unpredictable and advances in cryptography, or technical advances (including without limitation development of quantum computing), could present unknown risks to DAKE and/or Pand DAKE Swap by rendering ineffective the cryptographic consensus mechanism that underpins that blockchain protocol.

7. Other risks

In addition, the potential risks briefly mentioned above are not exhaustive and there are other risks (as more particularly set out in the Terms and Conditions) associated with your acquisition of, holding and use of DORA, including those that the Foundation or the Distributor cannot anticipate. Such risks may further materialise as unanticipated variations or combinations of the aforementioned risks. You should conduct full due diligence on the Foundation, the Distributor, their respective affiliates, and the Pand DAKE Swap team, as well as understand the overall framework, mission and vision for Pand DAKE Swap prior to acquiring DORA.

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