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Blog: 1KSM = 1DAO: How to create your Community at Kreivo (#109)
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| --- | ||
| title: "1KSM = 1DAO: How to create your Community at Kreivo" | ||
| description: | | ||
| Creating a DAO is usually a not so straightforward process, until now. | ||
| In this article, you'll learn how to create a community in Kreivo. | ||
| published_date: 2024-04-23 23:29:53 -0500 | ||
| permalink: /blog/1ksm-1dao-create-community-kreivo | ||
| data: | ||
| route: blog | ||
| author: Pablo Dorado | ||
| is_draft: false | ||
| --- | ||
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| ## Introduction | ||
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| Creating a DAO is usually a not so straightforward process. It usually involves deciding how do you | ||
| want it to work, the goal, the methods for deciding how to onboard the members of it, and how to govern it. | ||
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| Additionally, the deployment of a DAO doesn't get much easier: setup a multisig, find a network where | ||
| to deploy the Smart Contract for your DAO, issue a token among your members, then start receiving | ||
| funds on the account dedicated for the DAO. Aside from the technical challenge this means, being | ||
| able to decide managing your community out of the ordinary way (via tokenized governance) implies | ||
| modifying code you probably have to thoroughly check and audit. | ||
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| Between the cost of deciding, and the technical expense of deploying, the process of thinking in | ||
| establishing a DAO hasn't been an easy task. | ||
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| Until now. | ||
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| ## Introducing Communities at Kreivo | ||
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| At Virto Network, we believe that lowering the technical expense empowers people express their | ||
| creativity. | ||
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| With this in mind, we just finished a tough process to ensure you can create a DAO as simple as | ||
| possible without sacrificing the robustness of the security provided by a blockchain in Kusama, and | ||
| the flexibility to decide how you want to manage your organization. | ||
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| In this guide, you'll learn how to setup your DAO the way you want, how to onboard members on your | ||
| community, vote on referenda, and more! | ||
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| ## What is a Community? | ||
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|  | ||
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| In Kreivo, we define a Community as an abstraction of a DAO, represented by an account, governed by | ||
| a plurality using a referenda track, with a decision method. Alternatively, the DAO can be directly | ||
| administered by an origin. | ||
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| The first things you'll need to know before you create your Community (leaving the name and website | ||
| domain aside 😉) are: | ||
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| * The initial community administrator. | ||
| * The decision method. | ||
| * How many members your community will have. | ||
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| ### The Admin Origin | ||
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| First things first: a Community in Kreivo is represented by an Account. The account can receive funds | ||
| (either KSM or assets from Asset Hub). | ||
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| Let's get a bit technical here (promise not to be too technical in this explanation): in order to | ||
| administer the community, or use the _community account_, you'll need to dispatch a call from the | ||
| `communities` pallet in Kreivo. | ||
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| To dispatch those calls correctly, you have to call them either as a Community Origin (which is the | ||
| result of successfully passing a poll in the community governance with the requested instructions), | ||
| or via an Admin Origin. | ||
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| This Admin Origin can be any caller in Kreivo (like a Community Origin, or a Signed Origin —i.e. | ||
| you signing an extrinsic—). | ||
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| Usually, the first Admin Origin on a Community is a Signed where the signing account belongs to the | ||
| founder of the community. This is because to vote in a community, you need to be a member of it, | ||
| and communities are created without members. We'll talk about [adding members](#initial-members) later. | ||
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| Once your community has enough members, you can set the admin origin to be the Community itself, | ||
| reaching to the point where your Community is a fully decentalized DAO. | ||
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| A bit tradeoff of this is that, to manage a community or to take decisions with your community's | ||
| funds, you'll have to submit a poll, and vote to take decisions. | ||
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| Take this into consideration, so you'll decide what's better for your community in the long run. | ||
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| ### Initial members | ||
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| Members are the main pillar of a Community. They have ownership of the Community, and therefore are | ||
| the ones enabled to vote in a community poll. This might seem a bit odd, but this was designed to be | ||
| able to tell apart one the different affiliations on a community an Account might have. | ||
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| For example: Alice can be a member of the **DAO** and the **AOD** Communities. But each community | ||
| provides them with a different membership. This means Alice can vote for decisions in the **DAO** | ||
| community using their first membership, and vote in the **AOD** community using the second membership. | ||
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| Memberships are represented via NFTs, which means it's easier to swap accounts over time. Also, it's | ||
| possible to keep them as collectibles. | ||
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| Also, in the future, we plan that accounts which own memberships have certain perks, like executing | ||
| feeless transactions in Kreivo, or be configured for recurring payments (like salaries). | ||
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| One of the considerations you'll need to have is the initial amount of memberships, so you can acquire | ||
| as much memberships you need intiially for your community. | ||
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| ### The Decision Method | ||
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| We talked about how you need to submit a poll to administer and take actions on behalf of your | ||
| community's account. Let's talk about which mechanisms you can use to decide. | ||
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| Different communities decide by different methods. Traditionally, DAOs tend to decide by using the | ||
| token issued by the community. You can do that with Communities in Kreivo. | ||
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| But there are other ways to let your community decide a poll: | ||
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| * **Membership-based voting**: One membership, one vote. All votes are equal in weight. This is ideal | ||
| for horizontally governed communities. | ||
| * **Ranked-based membership voting**: Each membership is assigned a rank. The rank will give you a | ||
| weighed vote that's proportional to your membership's rank. This is ideal to give more representation | ||
| to the more prominent and commited members in your community. | ||
| * **Community Asset-based voting**: We talked about this briefly above. The weight of a vote is decided | ||
| by an amount of tokens the member locks to vote. The more assets you have, the more powerful your | ||
| voice can be. Used traditionally in DAOs everywhere, and ideal for organizations that have a | ||
| stocks-based participation. | ||
| * **Native Asset-based voting**: Some communities are bound to voting using the native token of the | ||
| network (this is, `KSM`). Ideal for communities with goals and governance bounded to the network | ||
| (ecosystem builders, ambassadors, etc.). | ||
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| Once you decide which method fits better for your community, you'll be ready to get started with | ||
| creating a community. | ||
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| ## Getting Started | ||
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| ### 1. Top-up your account in Kreivo | ||
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| Kreivo uses the same native token and account format as Kusama. This means, your Account Id in Kreivo | ||
| will be the same in kusama, so you won't need to create another key to manage your presence in Kreivo. | ||
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| Since Kreivo is not a _Kusama System Chain_, you'll need to transfer `KSM` as an asset, not teleport | ||
| it. | ||
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| To do so, you'll need to call `XcmPallet::limited_reserve_transfer_assets` with the following arguments: | ||
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| * `dest`: The location of the destination context. Needs to be the representation of | ||
| `./Parachain(2281)` in XCM. | ||
| * `beneficiary`: The location of the receiver of the assets in the destination. Your account in Kreivo, | ||
| represented as `./AccountId32(YourAccountIdInHex)` in XCM. To convert your Account Id to its Hex | ||
| format, you can use this [format transform][tool:format_transform] tool. | ||
| * `assets`: both the Asset Id (in XCM location), and amount to send. The location is relative to the | ||
| origin (in this case `./Here` in XCM location), and the amount must represent the asset amount with | ||
| decimals as an integer (so, `1000000000000` means `1` KSM). | ||
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|  | ||
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| > Here's [an example][extrinsics:example-1] with the parameters to send 1KSM to an Account. Use | ||
| it to guide yourself into sending funds to your account in Kreivo. | ||
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| ### 2. Create the Community | ||
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| > 💵 Note: When creating a community, a charge of `0.5` KSM will be taken as a deposit for covering | ||
| > the expenses of creating the community. This is to prevent spamming. | ||
| > | ||
| > For now, a community is not destroyable, so the deposit is not refundable, and funds are sent | ||
| > directly to the Kreivo Treasury. If you need a chargeback, and to destroy the community, you'll | ||
| > have to submit a referenda to the Kreivo Governance to ask for this. | ||
| > ⚠️ Note: It's really important you remember the Community Id you entered when registering the | ||
| > community. This will be the main identification of your community in Kreivo, and (as you will see | ||
| > below), will be used anywhere. | ||
| Enter the details we already discussed about earlier in the form to call `CommunitiesManager::register`. | ||
| Once the process is finished, you'll have access to the community account, a track in the community | ||
| referenda to submit proposals to execute on behalf of your community, and a collection for storing the | ||
| memberships issued to the members of your community. | ||
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|  | ||
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| > Here's [an example][extrinsics:example-2] with some parameters you can use to create a Kreivo | ||
| > community administered by the signature of the founder (that is, you), for which its members vote | ||
| > using a _rank-based membership voting_ method. | ||
| ### 3. Acquire memberships and add members | ||
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| > 💵 Note: acquiring memberships means you have to pay for them. This is to prevent spamming. | ||
| > | ||
| > We know it's a big commitment for our first communitise. So, for a limited time, communities will | ||
| > be able to acquire memberships that don't expire and will enable their members to make free | ||
| > transactions. | ||
| In order to acquire the memberships for your community members to use them, there are two ways of | ||
| doing it: | ||
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| 1. Acquiring the memberships from `CommunitiesMemberships`, then transferring them to your Community | ||
| Account. | ||
| 2. Topping up some funds to your Community Account (hint: you can use the `Index` option in `account` | ||
| to address to your community's account with your Community Id), then calling | ||
| `Communities::dispatch_as_account` to make your Community Account directly. | ||
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| #### 3.1. Acquire the memberships yourself and transfer them to your Community Account | ||
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| Make a call to `CommunityMemberships::buy_item`. Specify which Membership you want to acquire. | ||
| You'll get them from the collection 0 (the Membership Management collection) and the price of it | ||
| will be transferred to the Treasury. | ||
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|  | ||
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| > Here's an [example][extrinsics:example-3] of this call. | ||
| Once you've acquired the membership, you can transfer it to your community's account, to be able to | ||
| add a member using that membership. Repeat this process as many times you as you need for your members. | ||
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|  | ||
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| #### 3.2. Acquire the memberships using your Community Account | ||
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| First, transfer some funds to your Community Account, so the account can pay for the assets. There | ||
| are two ways of finding out your Community's Account. First one is crafting the community account. | ||
| This is more technical, but basically you'll replace the bytes in the hex-encoded address noted | ||
| below between the `<<<<>>>>` signs with the hexadecimal representation of your community account. | ||
|
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| ```js | ||
| 0x6d6f646c6b762f636d747973<<<<0309>>>>000000000000000000000000000000000000 | ||
| ``` | ||
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| Then, remove those signs. Finally, use the [format transform][tool:format_transform] tool to get the | ||
| SS58 representation of your AccountId. Get the prefix 2 (Kusama) account. | ||
|
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|  | ||
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| > Here's an [example][extrinsics:example-4] of this call using your community AccountId. | ||
| The second one (the easiest) is using `Index` on the `dest` parameter, and entering the Community | ||
| Id of your community as the index. This will be internally converted as the Community Account for | ||
| your community. | ||
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|  | ||
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| > Here's an [example][extrinsics:example-5] of this call using the Index representation. | ||
| Then, you can call `Communities::dispatch_as_account` to call `CommunityMemberships::buy_item`, with | ||
| the parameters we've seen above. | ||
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|  | ||
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| > Here's an [example][extrinsics:example-6] of this call. | ||
| That's it. Let's add some members! | ||
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| #### 3.4. Add some members | ||
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| As your community has some memberships available for its members it's time to call | ||
| `Communities::add_member`. Just indicate which is the Account you want to add as a member, and | ||
| that's it! | ||
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|  | ||
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| > Here's an [example][extrinsics:example-7] of this call. | ||
| ### 4. Going Beyond! 🚀 | ||
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| Your community account can receive funds in KSM and assets from Assets Hub, as well as using our | ||
| `Payments` module. In further articles, we'll explain how you can use these features, and setup a | ||
| Soverign Account that represents your Community in the Kusama Relay Chain, all of that, using XCM. | ||
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| [tool:format_transform]: https://kusama.subscan.io/tools/format_transform | ||
|
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| [extrinsics:example-1]: https://polkadot.js.org/apps/?rpc=wss%3A%2F%2Frpc.ibp.network%2Fkusama#/extrinsics/decode/0x630803000100a5230300010100d8dba69752ffb04fa563b126a31b037c8bebeb73e3c66cacd7c8efab46bd3423030400000000070010a5d4e80000000000 | ||
| [extrinsics:example-2]: https://polkadot.js.org/apps/?rpc=wss%3A%2F%2Fkreivo.io%2F#/extrinsics/decode/0x4b000903484d79204c75636b7920436f6d6d756e697479010001d8dba69752ffb04fa563b126a31b037c8bebeb73e3c66cacd7c8efab46bd3423010300 | ||
| [extrinsics:example-3]: https://polkadot.js.org/apps/?rpc=wss://kreivo.io/#/extrinsics/decode/0x4a2000001500000000e87648170000000000000000000000 | ||
| [extrinsics:example-4]: https://polkadot.js.org/apps/?rpc=wss%3A%2F%2Fkreivo.io%2F#/extrinsics/decode/0x0a03006d6f646c6b762f636d7479730309000000000000000000000000000000000000070088526a74 | ||
| [extrinsics:example-5]: https://polkadot.js.org/apps/?rpc=wss://kreivo.io/#/extrinsics/decode/0x0a0301250c070088526a74 | ||
| [extrinsics:example-6]: https://polkadot.js.org/apps/?rpc=wss%3A%2F%2Fkreivo.io%2F#/extrinsics/decode/0x470b4a2000001500000000e87648170000000000000000000000 | ||
| [extrinsics:example-7]: https://polkadot.js.org/apps/?rpc=wss%3A%2F%2Fkreivo.io%2F#/extrinsics/decode/0x47030038f07692f25fe5e61efc04bd0435bced9966990887cd7e3c548f2515e6dce76b |
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