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Franchiser

This document describes a smart contract design which allows holders of COMP-style voting tokens to selectively delegate portions of their voting power to third parties, while retaining full custody over the underlying tokens.

Familiarity with the design and functionality of checkpoint voting tokens is assumed, for background information refer to the following reference material from e.g. Compound or OpenZeppelin.

Motivation

Often, holders of voting tokens want to delegate their voting power, but not all to the same party! Because of how these tokens are designed, it’s impossible to do so without splitting balances across multiple addresses. While this constraint is somewhat frustrating, it opens up an interesting design space.

Description

Imagine a FranchiserFactory contract designed to allocate voting tokens, with the following properties:

  1. At any time, any voting token holder may specify some amount of voting power to give to a delegatee. This creates and funds a Franchiser smart contract designed specifically for the holder, who becomes the owner of the contract, and the delegatee.
    1. The Franchiser contract allows the owner to recall the delegated tokens on demand.
    2. The Franchiser automatically delegates voting power to the delegatee with no further interaction required.
  2. Franchiser contracts allow delegatees to further sub-divide their tokens amongst several subDelegatees.
    1. At any point the delegatee of a Franchiser may specify an amount of voting power to give to a subDelegatee, which creates and funds a nested Franchiser owned by the delegatee.
    2. The delegatee may recall any delegated tokens on demand.
    3. The maximum allowable number of subDelegatees varies. The delegatee who was granted voting power by an owner may designate up to 8 subDelegatees. Each of those may then specify 4 subDelegatees in turn, then 2, then 1, then 0.

Note that at any level of nesting, a delegatee (or owner) always has the ability to recall any and all tokens they or any subsidiaries have delegated. The maximum number of nested delegatees/subDelegatees that any one owner could be associated with is 16 (8 + 8*4 + 8*4*2 + 8*4*2), which costs about ~5m gas to fully unwind.