• Stake DONUT → get gDONUT.

• gDONUT is used for voting in Aragon (DAO) and LiquidSignal.

• Aragon DAO adds/removes strategies (normal DAO voting).

• LiquidSignal decides how revenue is split across those strategies (every 7 days).

• Strategies auction revenue with falling-price sales.

• Auction payments go to the Aragon DAO treasury, minus a global voter reward split.

LiquidSignal is a revenue-routing system for DonutDAO.

Aragon DAO handles the “what strategies exist” part. LiquidSignal handles the “how much goes to each strategy” part.

Aragon DAO

• Adds or removes strategies (buckets) through normal DAO voting.

• Acts as the treasury.

• Receives the revenue that comes out of the LiquidSignal system.

• Sets the global voter reward split.

LiquidSignal

• Lets gDONUT holders set the distribution across the active strategies.

• Votes update on a 7-day epoch cycle.

Revenue comes in, and the community continuously decides where it should go.

Think “routing,” not “proposals for every spend”:

• Aragon decides the menu (which strategies are allowed).

• LiquidSignal decides the percentages (how much goes to each one).

gDONUT

• You stake DONUT and receive gDONUT.

• gDONUT is your governance weight in both Aragon and LiquidSignal.

• It’s non-transferable, so voting power can’t be traded or rented.

Epochs

• Voting is locked to 7-day windows.

• One vote or reset per epoch.

Strategies

• A strategy is an outlet that receives revenue and runs a fixed process (usually an auction).

• Strategies don’t set their own reward split.

Global voter reward split

• There is one reward (bribe) split parameter.

• It’s set in the voter contract.

• All strategies use the same split.

• Range: 0% up to 50% of auction payments.

1. Revenue arrives from Donut Miner into a holding area.

2. gDONUT holders vote on how to split revenue across the active strategies for the current 7-day epoch.

3. Anyone can trigger distribution, pushing revenue into each strategy based on the vote split.

4. Each strategy auctions its entire balance using a falling-price sale (Dutch auction).

5. One buyer purchases the whole batch in one transaction.

6. The buyer’s payment is split:

   • the global voter reward portion goes to voters who supported that strategy

   • the rest goes to the Aragon DAO treasury

7. Voter rewards stream out over 7 days and can be claimed anytime.

8. Next epoch repeats.

Voters (gDONUT holders)

• Steer revenue across strategies.

• Earn voter rewards when auctions clear (based on the global split).

• Tradeoff: vote timing is epoch-locked, and you must clear votes to unstake.

Auction buyers

• Buy the strategy’s revenue asset by paying the configured payment asset.

• Better price comes from waiting, but waiting risks someone else buying first.

Aragon DAO treasury

• Receives the bulk of auction payments (after voter rewards).

• Controls which strategies exist.

Setup:

• 100 WETH revenue arrives.

• One strategy is active: sells WETH for DONUT.

• Global voter reward split is 20%.

• Auction window is 1 hour (price falls to zero).

Voting:

• Alice stakes 200 DONUT → gets gDONUT, votes 100% to this strategy.

• Bob stakes 100 DONUT → gets gDONUT, votes 100% to this strategy.

• Total voting weight: 300.

Auction:

• Carol buys the full 100 WETH for 1,000,000 DONUT.

Payment split:

• 20% (200,000 DONUT) → voter rewards (to voters for that strategy)

• 80% (800,000 DONUT) → Aragon DAO treasury

Rewards by weight:

• Alice gets ~2/3 of voter rewards over the 7-day stream

• Bob gets ~1/3

This is not a promise of profit.
If auctions don’t clear, value can sit in a strategy until a buyer takes it.
Votes update on a 7-day cycle, not instantly.
Strategy selection (via Aragon) still matters.
Market risk applies to DONUT and any auctioned assets.

Do I vote with DONUT?
No. You stake DONUT to receive gDONUT, and you vote with gDONUT.

Why make gDONUT non-transferable?
So voting power can’t be flashed, borrowed, or rented.

Who adds/removes strategies?
Aragon DAO (traditional DAO voting).

What does LiquidSignal control?
The split of revenue across the strategies that already exist.

Do different strategies have different reward splits?
No. They all use the same global voter reward split parameter.

Where does revenue end up?
Auction payments route to the Aragon DAO treasury after the voter reward portion.

• Stake DONUT → get gDONUT.

• gDONUT is used for voting in Aragon (DAO) and LiquidSignal.

• Aragon DAO adds/removes strategies (normal DAO voting).

• LiquidSignal decides how revenue is split across those strategies (every 7 days).

• Strategies auction revenue with falling-price sales.

• Auction payments go to the Aragon DAO treasury, minus a global voter reward split.

LiquidSignal is a revenue-routing system for DonutDAO.

Aragon DAO handles the “what strategies exist” part. LiquidSignal handles the “how much goes to each strategy” part.

Aragon DAO

• Adds or removes strategies (buckets) through normal DAO voting.

• Acts as the treasury.

• Receives the revenue that comes out of the LiquidSignal system.

• Sets the global voter reward split.

LiquidSignal

• Lets gDONUT holders set the distribution across the active strategies.

• Votes update on a 7-day epoch cycle.

Revenue comes in, and the community continuously decides where it should go.

Think “routing,” not “proposals for every spend”:

• Aragon decides the menu (which strategies are allowed).

• LiquidSignal decides the percentages (how much goes to each one).

gDONUT

• You stake DONUT and receive gDONUT.

• gDONUT is your governance weight in both Aragon and LiquidSignal.

• It’s non-transferable, so voting power can’t be traded or rented.

Epochs

• Voting is locked to 7-day windows.

• One vote or reset per epoch.

Strategies

• A strategy is an outlet that receives revenue and runs a fixed process (usually an auction).

• Strategies don’t set their own reward split.

Global voter reward split

• There is one reward (bribe) split parameter.

• It’s set in the voter contract.

• All strategies use the same split.

• Range: 0% up to 50% of auction payments.

1. Revenue arrives from Donut Miner into a holding area.

2. gDONUT holders vote on how to split revenue across the active strategies for the current 7-day epoch.

3. Anyone can trigger distribution, pushing revenue into each strategy based on the vote split.

4. Each strategy auctions its entire balance using a falling-price sale (Dutch auction).

5. One buyer purchases the whole batch in one transaction.

6. The buyer’s payment is split:

   • the global voter reward portion goes to voters who supported that strategy

   • the rest goes to the Aragon DAO treasury

7. Voter rewards stream out over 7 days and can be claimed anytime.

8. Next epoch repeats.

Voters (gDONUT holders)

• Steer revenue across strategies.

• Earn voter rewards when auctions clear (based on the global split).

• Tradeoff: vote timing is epoch-locked, and you must clear votes to unstake.

Auction buyers

• Buy the strategy’s revenue asset by paying the configured payment asset.

• Better price comes from waiting, but waiting risks someone else buying first.

Aragon DAO treasury

• Receives the bulk of auction payments (after voter rewards).

• Controls which strategies exist.

Setup:

• 100 WETH revenue arrives.

• One strategy is active: sells WETH for DONUT.

• Global voter reward split is 20%.

• Auction window is 1 hour (price falls to zero).

Voting:

• Alice stakes 200 DONUT → gets gDONUT, votes 100% to this strategy.

• Bob stakes 100 DONUT → gets gDONUT, votes 100% to this strategy.

• Total voting weight: 300.

Auction:

• Carol buys the full 100 WETH for 1,000,000 DONUT.

Payment split:

• 20% (200,000 DONUT) → voter rewards (to voters for that strategy)

• 80% (800,000 DONUT) → Aragon DAO treasury

Rewards by weight:

• Alice gets ~2/3 of voter rewards over the 7-day stream

• Bob gets ~1/3

This is not a promise of profit.
If auctions don’t clear, value can sit in a strategy until a buyer takes it.
Votes update on a 7-day cycle, not instantly.
Strategy selection (via Aragon) still matters.
Market risk applies to DONUT and any auctioned assets.

Do I vote with DONUT?
No. You stake DONUT to receive gDONUT, and you vote with gDONUT.

Why make gDONUT non-transferable?
So voting power can’t be flashed, borrowed, or rented.

Who adds/removes strategies?
Aragon DAO (traditional DAO voting).

What does LiquidSignal control?
The split of revenue across the strategies that already exist.

Do different strategies have different reward splits?
No. They all use the same global voter reward split parameter.

Where does revenue end up?
Auction payments route to the Aragon DAO treasury after the voter reward portion.