How does Dora Factory (DORA) operate?

1. Dora DAO Staking

Each Dora Factory DAO is created by staking 100 DORA tokens on the chain. When the DAO is terminated, the staked DORA tokens will be released. Later, when the number of DAOs increases and the value of DORA changes, a fixed staking price may be required when creating a DAO.

2. Validator Staking, Mining, and Inflation

Dora Factory is primarily a POA network, which transitions to an NPoS network after being deployed on Kusama. Validators and nominators maintain the parachain by validating transactions and generating blocks. Thus, validators and nominators will receive token rewards from inflation. In addition to inflation, transaction fees will be allocated to validators and nominators, and network fees charged to users and DAOs will be proportionally distributed across all staked DORA addresses.

The inflation rate is 1,000,000 DORA per year until the vast majority of the community votes against it. Therefore, unlike Polkadot itself, this starts with linear inflation of 10% in the first year. The inflation rate decreases year by year. Of the tokens generated from inflation each year, 2% will enter the Dora Factory treasury, and the remaining inflation-generated DORA will be allocated to nominators and validators.

3. Dora Network Fees

Key modules (Pallets) can charge fees. The DAO must "burn" DORA tokens (or pay fees) to use the Pallet (there can be free modules). The network fees paid by the DAO are taxed by Dora Factory, and the tax will be distributed proportionally to all staked addresses.

4. Network Rewards

The network rewards validators, module developers, and venture creators. Validators receive rewards from inflation as well as taxes levied by the DAO. Non-validator DORA stakers will receive network tax rewards. Developers are rewarded through module revenue.

5. Dora Factory Transaction Fees

All transactions on the parachain will incur a small transaction fee, which will be distributed to nominators and validators.

6. Dora Factory Governance

Dora Factory is managed by the community of DORA holders rather than a company, with two governance bodies: the Governance DAO and the Council.

The Governance DAO is the DAO of all DORA holders.

The Governance DAO is the DAO produced by Dora Factory.