ADR-14: L1 & L2 Governance Smart Contracts Architecture

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Context and Problem Statement

For L1, Decentraland has a DAO where people, part of the community, can vote and make decisions from basic signaling to executing an on-chain action.

Decentraland needs to scale and give a better experience to its users by using an L2 (second layer).

Users will interact with the same set of smart contracts like the Marketplace and Bid in L1, and new

ones like the upcoming store for collections' primary sales. Every smart contract which uses MANA but, not only, has

protocol parameters that must be managed by some kind of governance.

So far, DAO voting power is based on the user's wrapped MANA and LAND balance in L1.

This document presents alternatives on how to manage governance in L2.

Alternatives

Alternative 1: DAO (exact) replication in L2

Alternative 2: Govern L2 from L1 - Governance Box

Use cases

clusterL1 L1 Ethereum clusterL2 L2 Main chain marketplace_l1 Marketplace L1 bridge_l2 bridge Impl bid_l1 Bids L1 bridge_proxy_l1 Bridge Proxy L1 bridge_l1 Bridge Impl bridge_proxy_l1->bridge_l1 bridge_proxy_l2 Bridge Proxy L2 bridge_proxy_l1->bridge_proxy_l2 dao DAO dao->marketplace_l1 set fee dao->bid_l1 set fee dao->bridge_proxy_l1 Act on L2 collection_l2 Collection L2 marketplace_l2 Marketplace L2 bid_l2 Bids L2 bridge_proxy_l2->bridge_proxy_l1 bridge_proxy_l2->collection_l2 approve/reject bridge_proxy_l2->marketplace_l2 set fee bridge_proxy_l2->bid_l2 set fee store_l2 Collection Store bridge_proxy_l2->store_l2 set fee bridge_l2->bridge_proxy_l2

Alternative 3: Govern L2 from L1 - Governance Branches

Use cases

UC1
UC2
clusterL1 L1 Ethereum clusterL2 L2 Main chain dao DAO marketplace_l1 Marketplace L1 dao->marketplace_l1 set fee bid_l1 Bids L1 dao->bid_l1 set fee bridge_marketplaces_management_proxy_l1 Bridge Marketplaces Management Proxy L1 dao->bridge_marketplaces_management_proxy_l1 Act on L2 bridge_collections_management_proxy_l1 Bridge Collections Management Proxy L1 dao->bridge_collections_management_proxy_l1 Act on L2 bridge_marketplaces_management_proxy_l2 Bridge Marketplaces Management Proxy L2 bridge_collections_management_proxy_l2 Bridge Collections Management Proxy L2 bridge_marketplaces_management_proxy_l1->bridge_marketplaces_management_proxy_l2 bridge_marketplaces_management_l1 Bridge Marketplaces Management Impl bridge_marketplaces_management_l1->bridge_marketplaces_management_proxy_l1 bridge_collections_management_proxy_l1->bridge_collections_management_proxy_l2 bridge_collections_management_l1 Bridge Collections Management Impl bridge_collections_management_l1->bridge_collections_management_proxy_l1 bridge_marketplaces_management_proxy_l2->bridge_marketplaces_management_proxy_l1 bridge_marketplaces_management_l2 Bridge Marketplaces Management Impl bridge_marketplaces_management_proxy_l2->bridge_marketplaces_management_l2 marketplace_l2 Marketplace L2 bridge_marketplaces_management_proxy_l2->marketplace_l2 set fee bid_l2 bids L2 bridge_marketplaces_management_proxy_l2->bid_l2 set fee store_l2 Collection Store bridge_marketplaces_management_proxy_l2->store_l2 set fee bridge_collections_management_proxy_l2->bridge_collections_management_proxy_l1 bridge_collections_management_l2 Bridge Collections Management Impl bridge_collections_management_proxy_l2->bridge_collections_management_l2 collection_l2 Collection L2 bridge_collections_management_proxy_l2->collection_l2 approve/reject

Decision Outcome

Alternative 1

Pros

Cons

Implications

Alternative 2 ✅ ✅

Pros

Cons

Implications

Alternative 3 ✅ (Could be an iteration from alternative 2)

Pros

Cons

Implications

Open Questions

License

Copyright and related rights waived via CC0-1.0. DRAFT Final