Governance structures are a wildly under-developed field in the realm of smart contract technology. The Abstract Platform allows for any custom governance type to be used with its chain-agnostic framework. While most developers appreciate an easy-to-use interface to control their dApps, Abstract opts to provide two fully integrated governance choices ( token-based and DaoDao integration coming soon) that ensure a seamless user experience.
When setting up governance for your dApp, you will be prompted to choose between supported governance types, Monarchy and Multi-signature.
Not interested in account ownership? Skip to our section on Framework Components.
In a monarchy, a single wallet has full control over the dApp. If you’re connected with a wallet, your address will be automatically inserted as the owner.
graph TD A[Single Account] -->|Controls| B(Abstract Account) style A fill:#161b25 style B fill:#161b25
Multi-signature (“multisig”) governance is a governance structure that requires a subset of its members to approve an action before it can be executed. Though multiple multisig contract implementations exist, Abstract provides this functionality using the cw-3 standard with the goal of providing the most flexible solution to users.
Here are a few terms you need to know about when configuring your multisig:
Voter weight 🏋️♂️: The weight that the voter has when voting on a proposal.
Threshold 📊: The minimal % of the total weight that needs to vote YES on a proposal for it to pass.
graph TD subgraph Voters V1[Voter 1] V2[Voter 2] V3[Voter 3] end V1 --> A[Multisig Wallet] V2 --> A V3 --> A A -->|Controls| B(Abstract Account) B[Abstract Account] style A fill:#2c313d style B fill:#161b25 style V1 fill:#161b25 style V2 fill:#161b25 style V3 fill:#161b25
Let’s look at an example to make it clear how this works.
Suppose you are building a DeFi platform using Abstract and want to implement multisig governance. You have five stakeholders, and you want at least 60% of the total voting weight to approve a proposal for it to pass.
Set up the multisig module in your dApp.
Assign voter weights to each of the five stakeholders. For instance, A: 30%, B: 20%, C: 20%, D: 15%, and E: 15%.
Configure the multisig module with a 60% threshold.
With this configuration, any proposal will require approval from stakeholders with a combined voting weight of at least 60% to be executed. This ensures a more democratic decision-making process and reduces the risk of a single stakeholder making unilateral decisions.
A Sub-Account is an Abstract Account that is owned by another Abstract Account. They are easily created by calling
CreateSubAccount on any account. By creating a sub-account for each app it separates the access to funds between different apps. This system allows users to easily experiment with different apps without the concern of those apps accessing funds from their main account or other apps. The diagram below shows how sub-accounts can be owned by the main
Account or other sub-accounts.
flowchart TB Account SubAccount-A SubAccount-B SubAccount-C Owner --> Account Account --> SubAccount-A Account --> SubAccount-B SubAccount-A --> SubAccount-C
Now accessing or configuring these accounts could be hard. To make this easier we allow calling any sub-account or any app on a sub-account directly without requiring the message to be proxied through the top-level account. The diagram below shows how an account owner can configure the sub-accounts and apps directly that are part of his main account.
flowchart TB direction TB subgraph AbstrA[Sub-Account A] direction TB ManagerA[Manager] --> ProxyA[Proxy] AppA[App] end subgraph AbstrB[Sub-Account B] direction TB ManagerB[Manager] --> ProxyB[Proxy] end subgraph AbstrC[Sub-Account C] direction TB ManagerC[Manager] --> ProxyC[Proxy] App end subgraph Abstr[Account] direction TB Manager --> Proxy end Owner --> Manager Manager --> ManagerA Manager ---> ManagerB ManagerB --> ManagerC Owner -.Configure App.....-> AppA Owner -.Configure Account....-> ManagerC
As a result of this structure, complex multi-account systems can easily be transferred to between governance systems by simply changing the owner of the top-level account.