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HomeCryptoImplementing Multichain Governance in DAOs using zkSync and LayerZero

Implementing Multichain Governance in DAOs using zkSync and LayerZero

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Multichain governance has arrived on Aragon OSx! The new plugin leverages the LayerZero protocol for cross-chain messaging and the zkSync Era rollup for low-cost and secure voting. The code is still undergoing audits but you can already explore it here. This plugin enables DAOs to govern assets and permissions across EVM chains from one mainnet DAO smart contract. This is a major step forward for the governance of protocols deployed across chains.

Here’s how governance in multichain DAOs will work from proposal to execution:
Create a custom census with tokens across chains: Create a custom census using governance tokens across multiple chains using LayerZero’s Omnichain Fungible Token (OFT) standard.

Cast low-cost votes on zkSync: Once the census has been created, members will be able to vote settling on zkSync at a fraction of the cost.

Execute the action across chains simultaneously: After the vote, users can utilize the Aragon OSx permission management system to execute the action programmed into the proposal on multiple chains simultaneously from your mainnet DAO.

The architecture is diagrammed here. The plugin code is open-source and currently being audited. If you’re interested in using this design, inquire here about a custom build. The plugin ill launch on the no-code Aragon App in the new year. This specific multichain governance design would not be possible without Aragon OSx’s modular permission management system, making it simple to grant and revoke permissions to external contracts from a DAO contract.

Here’s what you can do with the plugin and why it’s exciting for the future of onchain governance.

Execute actions on any chain simultaneously

You can execute actions not just on mainnet, but on any chain that the main DAO has a proxy DAO deployed on. This gives you ultimate governance flexibility to adjust parameters and send assets on the precise chain you need to.

If you want to execute multiple actions simultaneously, you don’t have to create multiple proposals to execute the actions. You can execute all the actions from a single proposal, saving your DAO time and resources. This is thanks to the permission management system at the center of Aragon OSx.

Build a census with tokens from any chain

With the multichain governance plugin, voting rights are no longer fragmented. DAO members can hold governance tokens across any EVM chain and they can be counted in the same voting census on zkSync.

The plugin leverages LayerZero’s Omnichain Fungible Token Standard (OFT) to extend the capabilities of governance tokens, enabling token holders to cast votes on zkSync, no matter which chain their token originated on. You’re not limited to only fungible tokens, either. You can also use different tokens in your voting census, such as NFTs. This gives you more membership optionality, because your members can hold different tokens on different chains and still have them counted toward their voting power. As long as the tokens follow the Votes Standard, they can be used in the wrapper.

Vote on zkSync to save gas costs and increase token participation

With this plugin, you can save DAO members from having to cast expensive mainnet votes. All votes are cast on zkSync, so they’re just a fraction of the cost of what voting on mainnet would be.

This saves token holders significant gas costs when they vote. It can also increase token participation, because members might be more likely to cast votes if they don’t have to pay for them. Higher token participation can improve a DAO’s capture resistance, because it’s harder for a single entity to buy up the token and unilaterally pass proposals.

Have the advantages of security and liquidity on Layer 1, while increasing voter participation with Layer 2 scalability

Multichain governance gives you the best of Layer 1 and Layer 2 blockchains. Your DAO will have the security and liquidity benefits of being deployed on Ethereum mainnet, with the scalability of voting for a low cost on a Layer 2.
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