Account Ownership
Governance structures are a wildly under-developed field in the realm of smart contract technology. Abstract allows for any custom governance type to be used with its chain-agnostic framework. While most users 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
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 root user. Visit our documentation to learn more about dApp ownership and sovereignty.
Multi-signature
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 implementations exist, Abstract uses a cw-3 multisig contract with the goal of providing the most flexible solution to users.
Knowledge about a few terms is required to configure 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.
Example: 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.
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Set up the multisig module in your dApp.
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Assign voter weights to each of the five stakeholders. For instance, A: 30%, B: 20%, C: 20%, D: 15%, and E: 15%.
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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.