Decentralized Autonomous Organization Governance By Upgradeable Diamond Smart Contracts

Abstract

Upgrading smart contracts allows DAOs and other Dapps to fix bugs and upgrade their functionality. The most widely used pattern for upgrading is the proxy pattern. However, the proxy pattern centralizes power in the one who has access to the admin address, which can be called admin centralization. In this article, we describe how the diamond pattern (ERC-2535) can be used to set up decentralized governance. We describe how the diamond pattern is configured and complemented by census governance. The proposed pattern has three advantages: 1) governance of smart contracts without admin centralization; 2) non-technical member participation in governance without smart contract knowledge; 3) user-friendly upgradeable DAO implementation using a graphical interface. To extend the use of the diamond pattern, we call for the creation of user-friendly tooling and smart contract facets.