The Ultimate Aragon DAOs Cheat Sheet

Introduction: What are Aragon DAOs?

Aragon is an open-source blockchain platform that enables the creation and management of decentralized autonomous organizations (DAOs). DAOs are digital organizations that operate through smart contracts on blockchain networks, primarily Ethereum, allowing for transparent, trustless governance without traditional hierarchies. Aragon provides the infrastructure, tools, and frameworks needed to create, customize, and operate DAOs, making decentralized governance accessible to a wide range of users and use cases.

Core Components of Aragon Ecosystem

Aragon Client

• Definition: The main interface for creating and managing DAOs
• Access: Available at client.aragon.org
• Features: Templates for quick creation, app installation, permission management
• Networks: Ethereum Mainnet, Polygon, Arbitrum, and testnets (Goerli, Mumbai)

Aragon Court

• Definition: Decentralized dispute resolution protocol
• Purpose: Resolves disputes within DAOs by randomly selecting jurors
• Token: ANJ (Aragon Network Juror) tokens used for staking by jurors
• Process: Dispute creation → Juror selection → Evidence submission → Ruling → Appeals → Execution

Aragon Connect

• Definition: JavaScript library for developers
• Purpose: Integrate DAO functionality into external applications
• Features: Read/write data from DAOs, interact with apps and transactions

Aragon Govern

• Definition: Optimistic governance system with off-chain execution planning
• Features: Proposal creation, scheduling, execution, and challenge mechanisms
• Advantage: Lower gas costs through off-chain proposal storage

ANT Token

• Definition: Aragon Network Token
• Purpose: Governance token for the Aragon Network
• Utility: Vote on proposals, stake in treasury, contribute to ecosystem
• Type: ERC-20 token on Ethereum

Aragon DAO Creation Process

1. Preparation

• Define organization purpose and structure
• Determine necessary apps and permissions
• Identify founding members and token distribution
• Calculate initial funding requirements

2. DAO Creation

1. Visit client.aragon.org
2. Connect wallet (MetaMask, WalletConnect, etc.)
3. Select "Create an Organization"
4. Choose template:
   - Company: Token voting with transferable tokens
   - Membership: One-member-one-vote with non-transferable tokens
   - Reputation: Weighted voting based on assigned reputation
   - Custom: Build from scratch
5. Configure organization settings:
   - Name
   - Voting settings (Support %, Minimum Approval %, Vote Duration)
   - Initial token distribution
6. Deploy organization (requires ETH for gas)

3. Post-Creation Setup

• Install additional apps
• Configure permissions
• Add funds to treasury
• Create initial proposals
• Onboard members

Aragon Apps Ecosystem

Core Apps

Additional Apps

Governance Models in Aragon

Token-Based Voting

• Mechanism: 1 token = 1 vote
• Best for: Investment funds, Protocols, Organizations with stakeholders
• Configuration Parameters:
  • Support: Percentage of votes needed to approve (e.g., 51%)
  • Minimum Approval: Percentage of total token supply that must vote (e.g., 20%)
  • Vote Duration: Time window for voting (e.g., 7 days)

Membership-Based Voting

• Mechanism: 1 member = 1 vote (non-transferable tokens)
• Best for: Cooperatives, Clubs, Collectives with equal member rights
• Configuration: Same parameters as token voting, but each member has equal influence

Conviction Voting

• Mechanism: Voting power accumulates over time
• Best for: Continuous decision-making, Treasury allocation
• Parameters:
  • Conviction Growth: How quickly voting power builds
  • Minimum Conviction: Threshold for proposal acceptance
  • Max Ratio: Maximum funds that can be allocated per proposal

Optimistic Governance

• Mechanism: Proposals pass automatically unless challenged
• Best for: Efficient operations with security guarantees
• Parameters:
  • Challenge Period: Time window to contest proposals
  • Collateral: Funds required to submit/challenge proposals
  • Resolution Method: How challenges are settled

Permission System

Permission Structure

• Entities: Accounts or smart contracts that can perform actions
• Apps: Smart contracts that implement functionality
• Roles: Named permissions within apps
• Permissions: Connections between entities, apps, and roles

Permission Types

• Direct: Entity directly granted a permission
• Forwarded: Entity can request permission via a forwarding app
• Conditional: Permission granted if conditions are met

Permission Manager

• Definition: Entity that can grant or revoke a specific permission
• Types:
  • Single account manager (e.g., root account)
  • Voting manager (requires vote to change)
  • Parameterized manager (requires meeting conditions)

Example Permission Setup

Finance App:
- CREATE_PAYMENTS_ROLE:
  - Granted to: Voting app
  - Managed by: Voting app
  
- EXECUTE_PAYMENTS_ROLE:
  - Granted to: Tokens app (based on token holdings)
  - Managed by: Voting app

Creating Effective Proposals

Proposal Structure

1. Title: Clear, concise description (5-10 words)
2. Description:
   • Problem statement/background
   • Proposed solution
   • Implementation details
   • Expected outcomes
   • Timeline
   • Budget/resources required
3. Reference Links: Documentation, discussions, external resources
4. Technical Details: Specific transactions, parameters, or code changes

Proposal Best Practices

• Research thoroughly before proposing
• Discuss informally in community channels first
• Consider feedback and iterate on proposal
• Be specific about implementation details
• Include metrics for measuring success
• Consider alternatives and explain why your solution is best
• Address risks and potential mitigation strategies

Common Proposal Types

• Funding: Request treasury funds for projects
• Parameter Change: Modify governance or protocol parameters
• Smart Contract Upgrade: Improve or fix functionality
• Role Assignment: Grant permissions to entities
• Policy Creation: Establish new rules or procedures
• Asset Management: Decisions on treasury investments

Financial Management

Treasury Management

• Asset Types: ETH, ERC-20 tokens, NFTs
• Diversification: Strategies for balancing risk/reward
• Yield Strategies: Options for generating returns on treasury assets

Recurring Payments

1. Open Finance app
2. Select "New Payment"
3. Choose "Recurring Payment"
4. Set recipient address
5. Set amount and token
6. Define frequency (e.g., monthly)
7. Set start date and number of payments
8. Submit for approval

Financial Reporting

• Transparency: Regular reporting on treasury status
• Tools:
  • Dune Analytics for custom dashboards
  • DeepDAO for comparative analytics
  • Etherscan for transaction verification

Common Challenges & Solutions

Advanced Customization

Aragon Agent for External Interactions

// Example: Using Agent to interact with external contract
const agent = new ethers.Contract(agentAddress, agentAbi, provider);
const targetContract = "0x123..."; // External contract
const calldata = web3.eth.abi.encodeFunctionCall({
  name: "transfer",
  type: "function",
  inputs: [{type: "address", name: "to"}, {type: "uint256", name: "value"}]
}, ["0x456...", "1000000000000000000"]);

// Create vote to execute this action via Agent
await voting.methods.newVote(
  agent.address,
  web3.eth.abi.encodeFunctionCall({
    name: "execute",
    type: "function",
    inputs: [{type: "address", name: "target"}, {type: "uint256", name: "value"}, {type: "bytes", name: "data"}]
  }, [targetContract, "0", calldata]),
  "Use Agent to transfer tokens"
).send();

Custom App Development

• Aragon Buidler: Development environment for Aragon apps
• Aragon.js: JavaScript framework for app front-ends
• Aragon PM: Package manager for publishing apps
• Key Components:
  • Smart contracts (Solidity)
  • Front-end (React)
  • Manifest files (arapp.json)
  • Script files (deployment)

Metrics & Analytics

DAO Health Indicators

• Member Growth: New members over time
• Voting Participation: Percentage of tokens/members that vote
• Proposal Success Rate: Approved vs. rejected proposals
• Treasury Growth: Change in asset value over time
• Activity Metrics: Transactions, votes, discussions

Analytics Tools

• Aragon Analytics: Built-in metrics for Aragon DAOs
• DeepDAO: Cross-DAO analytics platform
• Dune Analytics: Custom query builder for blockchain data
• Boardroom: Governance aggregator and analytics

Aragon Networks and Deployment Options

Mainnet

• Ethereum: Original deployment, highest security
• Polygon: Lower fees, faster transactions
• Arbitrum: L2 rollup with lower fees, Ethereum security

Testnet

• Goerli (Ethereum testnet)
• Mumbai (Polygon testnet)

Deployment Considerations

• Gas Costs: Significantly higher on Ethereum mainnet
• Transaction Speed: Faster on L2s and sidechains
• Security Trade-offs: Different trust assumptions across networks
• User Experience: Consider wallet compatibility and network switching

Resources for Further Learning

Official Resources

• Aragon Documentation
• Aragon Developer Portal
• Aragon Forum
• Aragon Github

Community Resources

• Aragon Discord
• Aragon DAO Examples
• Aragon Monthly Blog

Educational Content

• DAO Landscape Guide
• Introduction to Web3 Governance
• Token Engineering Community

This cheat sheet covers the essential aspects of Aragon DAOs, from basic setup to advanced governance mechanisms. For specific technical details or evolving features, always refer to the official Aragon documentation and community resources.