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## Motivation
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If you are building a project on Cardano that involves decentralized interaction between users you may want to create a DAO (Decentralized Autonomous Organization).
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> Consider linking an article here? Maybe the [Wikipedia one](https://www.wikiwand.com/en/Decentralized_autonomous_organization) or a better one you know of?
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If you are building a project on Cardano that involves decentralized interaction between users you may want to create a DAO ([Decentralized Autonomous Organization](https://www.wikiwand.com/en/Decentralized_autonomous_organization)).
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A DAO will allow users to come to a consensus on a variety of matters relevant to your project. These could include: managing of treasury assets, changing of protocol parameters, replacing of scripts, deprecation of the protocol in favour of a new version, emergency actions to protect users, and so forth. In order to do this on-chain, users will have to be able to express their opinion contractually, and only those with a vested interest ought to be able to interact with relevant proposals. This should ensure that voters have the best interests of the protocol at-heart. Governance systems can take varied forms, and not all of them will be suitable for your project.
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@ -21,13 +19,7 @@ This article will include common English words that have specific meanings in Ag
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## Agora and your protocol
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Agora’s staking model relies on the existence of a governance token. In a sense, this governance token _parameterizes_ the entire system. Agora staking pools will lock users' governance tokens in order to permit them to vote.
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> However, the majority of Agora components can live on their own after that fact.
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>
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> Jack: I am unsure what you mean here. Please rewrite for clarity.
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One could for instance technically create a DAO that works with ADA as its governance token.
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Agora’s staking model relies on the existence of a governance token. In a sense, this governance token _parameterizes_ the entire system. Agora staking pools will lock users' governance tokens in order to permit them to vote. Agora's components are free-standing and don't _require_ a protocol acting in a particular way in order to function. One could for instance technically create a DAO that works with ADA as its governance token. The tokenomics of your governance token will of course influence the way voting power is distributed, due to the nature of token-based voting.
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In order to set-up your protocol’s DAO actions, all affected components of your protocol will need to interpret the burning of an _authority token_ as a licence to alter _any_ aspect of that component.
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@ -39,17 +31,13 @@ One writes a proposal effect, as one would write any Plutus script with the cave
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Consider an example NFT project, wherein the minting of each NFT is a community action. For this scenario, one would require a template `MintNFT` effect, which mints its corresponding NFT upon the passing of the relevant proposal. The proposal being passed will issue an authority token to the effect. Each NFT's policy will verify that such an authority token was burned upon minting, which demonstrates that the minting of the NFT was indeed authorized by the DAO.
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These two are the only required chores of using Agora in practice. The former is the only one that involves adapting your own scripts. Effect scripts can be written after your protocol and its governance has deployed, provided the authority tokens are respected by the components.
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> Which two, sorry?
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Making your protocol's components aware of authority tokens, and implementing relevant effects are the only two chores of using Agora in practice. The former is the only one that involves adapting your own scripts. Effect scripts can be written after your protocol and its governance has deployed, provided the authority tokens are respected by the components.
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## What Agora leaves up to you
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Agora’s concern is the on-chain components and scripts. Any front-ends are the concern of the protocol's developers. In the best case, our documentation and program design will inspire you in developing a front-end solution. There is scope for Agora containing some off-chain functionality in-future. This would allow the user to create and experiment with transactions.
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> It’s worth noting that, while the actual functionality of the _frontends_ isn’t a concern, documentation on standardization of off-chain metadata _is_. For example, off-chain metadata tagging of proposal descriptions, tags, dates, etc. These are all important features that Agora aims to standardize, in hopes of helping the interoperability between various protocols, and DAOs for DAOs.
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>
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> Jack: 'documentation on standardization of off-chain metadata'?
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It’s worth noting that, while the actual functionality of the _frontends_ isn’t a concern, creating standards for off-chain metadata _is_. For example, metadata tagging proposal descriptions, tags, dates, etc. These are all important features that Agora aims to standardize, in hopes of helping the interoperability between various instances of Agora. This effort is similar to [CIP-25](https://cips.cardano.org/cips/cip25/), which aims to standardize metadata for NFTs.
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You're welcome to write any new effects you require for your protocol. If you believe any effects you write are sufficiently general and could serve as a benefit to our community, we would encourage you to up-stream them. Guidelines for doing so may be found in our [contribution guide](/CONTRIBUTING.md). Agora provides a number of effects out-of-the-box and intends to add more with time.
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