# Introduction

The Floor protocol is an NFT-Fi liquidity layer, powered by FLOOR, that automates regular sweeps of collection floors and earns yield by deploying these assets to DeFi. This yield is then sent back to the Floor Wars with a goal to create larger and larger weekly sweeps.

The DAO aims to create a perpetual sweeping protocol that funds itself through NFT-Fi strategies and protocol owned products to deliver powerful governance value by handing over Sweep Power to FLOOR holders - giving them control over what NFT collections get swept and supported.

<figure><img src="/files/aIokI48mEktP8hvo4x1e" alt=""><figcaption><p>FLOOR voters decide what collections are swept or liquidated to maximize value to the DAO</p></figcaption></figure>

Every epoch (14 days), FLOOR holders decide which collection to sweep with the epoch’s yield. But not all NFT collections can be swept - only those that have made it through an initial Collections Vote can move forward into the weekly Sweep Votes.

These votes have become heavily fought over giving rise to the *Floor Wars*. From here on these votes are referred to as the **Collection War** and the **Sweep War**.

A collection that has won a Collection War and made it into the Floor protocol receives a number of benefits:

* Eligible for weekly buy pressure from the Sweep War
* Integration into DeFi products to extend the utility of the collection
* Instant buy/sell protocol owned liquidity deployed to NFTX

A third party vote market also operates alongside the Wars, where FLOOR holders can sell their votes to willing buyers for yield.


# Sweep Power (Vote Locking)

Sweep Power is used to vote in FloorDAO governance. It is generated by locking FLOOR tokens with a maximum lock time of 12 weeks and a minimum lock time of 4 weeks. The longer the lock, the more Sweep Power (SP) is generated per FLOOR. At the max lock time of 12 weeks, 1 FLOOR = 1 SP.

Importantly, Sweep Power does not expire and remains constant over time. A user whose lock time remaining has fallen below the minimum lock period of 4 weeks will be automatically relocked when voting in the Floor Wars.

<figure><img src="/files/0eCL9K8Z4ALSspPbTdvK" alt=""><figcaption></figcaption></figure>

**Early Exit Penalties**

Users are able to unlock their FLOOR at any time after an initial 4 week minimum lock period, however early exits incur a penalty paid in FLOOR which is sent to the DAO. The amount paid follows a linear degradation curve that falls from 100% to 0% at the lock expiry.


# Floor Wars ⚔️

Floor Protocol has two key voting events:

* [Collection War](/dao/floor-wars/collection-war)
* [Sweep War](/dao/floor-wars/sweep-war)

In the New Collection War, a set of possible NFT collections are put up to vote with the winning collection being allowlisted into the DAO.

A winning collection is then included in each week’s Sweep War. The Sweep War is a Curve-like gauge vote that directs the DAO’s weekly yield to sweeping collections proportionally to their vote share.<br>


# Sweep War 🧹

The default Floor War is a Sweep War. Every two weeks (epoch) the current set of allow-listed NFT collections are put up for a vote to determine which collections will be swept with the week’s yield.

Users who have locked FLOOR to generate Sweep Power can use this Sweep Power to vote for one more collections

A special gauge is also available for a staked ETH token (LST), allowing holders to vote to retain the ETH yield and earn interest from staking.

### Negative Voting

Users are able to negative vote collections that they want to liquidate from the treasury. Collections that have net negative votes at the end of the epoch are liquidated based on the negative share of the total vote. For instance, if a collection has -20,000 votes, and there have been 60,000 votes across other collections, 25% of the collection will be liquidated into ETH.

Proceeds from any liquidation are recycled back into the following Floor War(s).

{% hint style="info" %}
Collections are only liquidated if their negative votes account for at least 1% of the total votes.
{% endhint %}

### "Sweep Zone"

The DAO's NFT-Fi strategies (and future products) provide a sustainable source of ETH yield for the the Floor War sweeps. To ensure that the ETH yielded is not spread too thinly across collections, a threshold is set by governance to determine the number of top collections (as voted) to sweep each epoch.

This ensures that sweep sizes remain significant for the winning collection, and that communities remain supportive of their collection even after successfully winning a Collection War.

### Yield Sources

The DAO generates yield from NFTX V2 and V3 and in the future, from its own NFT-Fi products. These yield sources are likely to expand in future version of the protocol.


# Collection War ✨

For an NFT collection to benefit from regular Floor War sweeps and the financialization/utility that comes with it, it must first win a Collection War.

{% hint style="info" %}
Collection Wars are currently triggered by offchain DAO governance but are expected to move onchain in the future.
{% endhint %}

Collection Wars are scheduled by governance for an epoch in the future. Once the scheduled epoch arrives, the Sweep War is replaced by the Collection War and users vote in the same way.

At the end of the epoch the winning collection is approved to the DAO’s treasury and following an initial sweep using the epoch's total yield, the collection then takes its place in future Sweep Wars.

The DAO has the option to sweep with more than the yield generated for that epoch if it is deemed necessary to better bootstrap the collection.

<br>


# Vote Market

Through third parties such as Hidden Hand, anyone can create a Vote Market for any collection in both a Sweep War and a Collection War. Users specify the collection, the token to pay out, the amount and the duration.

Users who vote for a collection listed in the Vote Market will then receive a pro-rata amount of the reward token following the end of the epoch.


# Treasury

The DAO uses its treasury to farm NFT-Fi yield through NFTX with the possibility to explore newer and higher risk protocols through sub-DAOs of Floor. This yield is then fed back into the Floor Wars, increasing the weekly sweep size and creating a more competitive and valuable vote for FLOOR holders.

With V2 launched, the DAO intends to explore the development of related NFT-Fi products as an alternative stream of ETH for the Floor Wars, enabling faster growth in the DAO’s treasury and a more contested weekly Floor War.

For real-time treasury information and 3rd party tracking, visit <https://floor.xyz/treasury>.


# Governance

### Onchain Voting

The long-term goal for FloorDAO governance is to move all aspects of the DAO onchain. This will execute on the DAO's original vision to have FLOOR operate as a pure governance token with guarantees about its control over the protocol.

In V2 the two key governance mechanisms, **Sweep Wars** and **Collection Wars** are moved onchain with the multi-sig acting solely as a temporary steward of the DAO.

### Offchain Voting

Offchain voting continues to take place in the form of Discord and Forum discussion followed by Snapshot voting, which is used for signalling support for decisions outside of those that are made onchain. Offchain voting is, by definition, non-binding, but its role has historically been valuable for executing proposals from the community.

#### Forum Proposals

{% embed url="<https://forum.floor.xyz/t/proposal-rules-and-guidelines/60>" %}
forum.floor.xyz
{% endembed %}

*Rules*

* Include a FIP (FloorDAO Improvement Proposal) number in the post title.
* Add a poll option in your proposal.
* Start a discussion in Discord, or General Forum prior to posting a proposal.
* Be ready to engage with the community e.g. by answering their replies, addressing their concerns.

#### Snapshot Proposals

{% embed url="<https://snapshot.org/#/floordao.eth>" %}

*Criteria for a Snapshot Vote*

* The proposal should be live for at least one day.
* The proposal should receive **at least three posts from different members** in the forum or Discord to ensure sufficient engagement.
* The author should indicate clearly when the Snapshot vote shall commence (see the Template section below).

<pre><code>## Summary
A simple description of the proposal’s end result and desired change; should be no more than a few succinct sentences.

## Motivation
Explain why this proposal is necessary or useful for the protocol. The author is encouraged to add visual elements such as charts to support their arguments.

## Proposal
Lay out your proposal - explain how it is going to tackle the issue at hand and present the action items.

<strong>## Polling Period
</strong>The polling process begins now and will end at HH:MM UTC on YYYY-MM-DD. After this, a Snapshot vote will be put up at HH:MM UTC on YYYY-MM-DD.

<strong>## Poll
</strong>For: Action taken if this proposal is accepted.
Against: Action taken if this proposal is rejected.
</code></pre>

### Multi-Sig

{% embed url="<https://app.safe.global/home?safe=eth:0xA9d93A5cCa9c98512C8C56547866b1db09090326>" %}
Mainnet Mult-Sig
{% endembed %}

{% embed url="<https://app.safe.global/home?safe=arb1:0x058434Fa07b2802f17874eD49ed51431792D94Ca>" %}
Arbitrum Multi-Sig
{% endembed %}

As a necessary step to guide the DAO to its decentralized future, a 3 of 6 multi-sig is used to execute on behalf of the community and to protect the initial vision and interests of the DAO. The purpose of the multi-sig is not to benefit or enrich FLOOR holders but to execute on the DAO's vision to build a decentralized liquidity coordination tool that is owned by token holders.

As the treasury expands the number of signers and execution threshold will also increase to provide greater levels of security until such a time that the DAO can be safely decentralized.


# FLOOR

The FLOOR token can be used as a pure [governance token](/dao/governance) by locking it for voting power. This voting power (called "Sweep Power") allows holders to influence all of FloorDAO's onchain votes and is used as a way to signal preferences in offchain voting mechanisms such as Snapshot.org.

The FLOOR token does not provide a claim on the treasury and offchain votes are non-binding, meaning that the multi-sig ultimately decides proposals are enacted.

The FLOOR token does, however, provide access to all of FloorDAO's onchain decision making, and the team is working to decentralize every aspect of the DAO over time, starting with V2's [Floor Wars](/dao/floor-wars).


# Contract Addresses

{% hint style="info" %}
Floor V2 contract addresses are identical across mainnet and testnets.
{% endhint %}

{% tabs %}
{% tab title="Mainnet" %}

## Mainnet Contract Addresses

### DAO

| Contract Name     | Address                                    |
| ----------------- | ------------------------------------------ |
| AuthorityRegistry | 0xa864ecf7751348592307a089468a429c5dc7d693 |
| AuthorityControl  | 0x2df7427f661b8e06f0364898db0fce3cdb10f5a9 |
| Treasury          | 0x3b91f74ae890dc97bb83e7b8edd36d8296902d68 |

### Token

| Contract Name     | Address                                    |
| ----------------- | ------------------------------------------ |
| FloorToken        | 0x3b0fccbd5dae0570a70f1fb6d8d666a33c89d71e |
| MigrateFloorToken | 0xf94b9df11f26175bbfe6e3b0b61fbbafb6f15f4b |
| VeFloorStaking    | 0x2b7e22610db92169b87a27df1929c9315b59509f |

### Wars

| Contract Name                            | Address                                    |
| ---------------------------------------- | ------------------------------------------ |
| NewCollectionWars                        | 0x72d6c121d0cdd773da8ba75057c5f4f2ef8755a1 |
| SweepWars                                | 0x09c9381417e0ecff536ec33375f1d5b2efa97d78 |
| CollectionRegistry                       | 0xd609ba5d63915652c6642695e9c50b68e2ede0e5 |
| EpochManager                             | 0xdbcf0946e3573661fe2696ef06a766a06da92518 |
| RegisterSweepTrigger                     | 0xdf95bd23dc39749e870b86b90203b94de5d0971a |
| StoreEpochCollectionVotesTrigger         | 0xa56de1ec6c8ede73d7fb1eeb7dd3cc209cd655b5 |
| LiquidateNegativeCollectionManualTrigger | 0xfe702e86ff008cd21068ddd9f50dcb64eec1d2e7 |

### Strategies

| Contract Name                     | Address                                    |
| --------------------------------- | ------------------------------------------ |
| StrategyFactory                   | 0xdf2e023ea56d752d0b5be79f65557987976676cc |
| StrategyRegistry                  | 0x156e9b71dcaa660d3ec849dc93b54a3a7f82f23e |
| DistributedRevenueStakingStrategy | 0x183549c6d81818fc80b4cd1194f2712b3efe1a15 |
| NFTXInventoryStakingStrategy      | 0xdcc3f4e4e229269dce3c678aaf90c2d6b23008fd |
| NFTXLiquidityPoolStakingStrategy  | 0x19f034694643200ae222c0380a068083c09fbc31 |
| RevenueStakingStrategy            | 0x7514b1b811e03ec1e969c910ab6562895a3f2cad |
| UniswapV3Strategy                 | 0x5091a094f72e047df66a1de37857377d4ca9aaa4 |
| NFTXV3Strategy                    | 0x669a198c04dbef381b9c20b31fc4cb1f684364be |
| NFTXV3LiquidityStrategy           | 0x7e90bef7ea020fa77e2ceb03cc858ce653c3e0a8 |

### Sweepers

| Contract Name   | Address                                    |
| --------------- | ------------------------------------------ |
| SweeperRouter   | 0x1026280527868d3eEB096fCB9417c742A9b932C0 |
| CowSwapSweeper  | 0x207348e4500076c33188D0c7bc5bfa6322431b2e |
| ManualSweeper   | 0x73ea878861657d7d1e94ff0716834d48f80b2f8d |
| SudoswapSweeper | 0x951670cc332a4c56d9f03f5d14f78f7c5365d838 |

### Vesting

| Contract Name                   | Address                                    |
| ------------------------------- | ------------------------------------------ |
| VestingClaim (migrated from V1) | 0x89336e8a7e6fb2a0ad0803e940958718c5bf44be |
| {% endtab %}                    |                                            |

{% tab title="Sepolia" %}

## Sepolia Contract Addresses

### DAO

| Contract Name     | Address                                    |
| ----------------- | ------------------------------------------ |
| AuthorityRegistry | 0xa864ecf7751348592307a089468a429c5dc7d693 |
| AuthorityControl  | 0x2df7427f661b8e06f0364898db0fce3cdb10f5a9 |
| Treasury          | 0x3b91f74ae890dc97bb83e7b8edd36d8296902d68 |

### Token

| Contract Name     | Address                                    |
| ----------------- | ------------------------------------------ |
| FloorToken        | 0x3b0fccbd5dae0570a70f1fb6d8d666a33c89d71e |
| MigrateFloorToken | 0xf94b9df11f26175bbfe6e3b0b61fbbafb6f15f4b |
| VeFloorStaking    | 0x2b7e22610db92169b87a27df1929c9315b59509f |

### Wars

| Contract Name                            | Address                                    |
| ---------------------------------------- | ------------------------------------------ |
| NewCollectionWars                        | 0x72d6c121d0cdd773da8ba75057c5f4f2ef8755a1 |
| SweepWars                                | 0x09c9381417e0ecff536ec33375f1d5b2efa97d78 |
| CollectionRegistry                       | 0xd609ba5d63915652c6642695e9c50b68e2ede0e5 |
| EpochManager                             | 0xdbcf0946e3573661fe2696ef06a766a06da92518 |
| RegisterSweepTrigger                     | 0xdf95bd23dc39749e870b86b90203b94de5d0971a |
| StoreEpochCollectionVotesTrigger         | 0xa56de1ec6c8ede73d7fb1eeb7dd3cc209cd655b5 |
| LiquidateNegativeCollectionManualTrigger | 0xfe702e86ff008cd21068ddd9f50dcb64eec1d2e7 |

### Strategies

| Contract Name                     | Address                                    |
| --------------------------------- | ------------------------------------------ |
| StrategyFactory                   | 0xdf2e023ea56d752d0b5be79f65557987976676cc |
| StrategyRegistry                  | 0x156e9b71dcaa660d3ec849dc93b54a3a7f82f23e |
| DistributedRevenueStakingStrategy | 0x183549c6d81818fc80b4cd1194f2712b3efe1a15 |
| NFTXInventoryStakingStrategy      | 0xdcc3f4e4e229269dce3c678aaf90c2d6b23008fd |
| NFTXLiquidityPoolStakingStrategy  | 0x19f034694643200ae222c0380a068083c09fbc31 |
| RevenueStakingStrategy            | 0x7514b1b811e03ec1e969c910ab6562895a3f2cad |
| UniswapV3Strategy                 | 0x5091a094f72e047df66a1de37857377d4ca9aaa4 |
| NFTXV3Strategy                    | 0x669a198c04dbef381b9c20b31fc4cb1f684364be |
| NFTXV3LiquidityStrategy           | 0x7e90bef7ea020fa77e2ceb03cc858ce653c3e0a8 |

### Sweepers

| Contract Name   | Address                                    |
| --------------- | ------------------------------------------ |
| SweeperRouter   | 0x1026280527868d3eEB096fCB9417c742A9b932C0 |
| CowSwapSweeper  | 0x207348e4500076c33188D0c7bc5bfa6322431b2e |
| ManualSweeper   | 0x73ea878861657d7d1e94ff0716834d48f80b2f8d |
| SudoswapSweeper | 0x951670cc332a4c56d9f03f5d14f78f7c5365d838 |

### Vesting

| Contract Name                   | Address                                    |
| ------------------------------- | ------------------------------------------ |
| VestingClaim (migrated from V1) | 0x89336e8a7e6fb2a0ad0803e940958718c5bf44be |
| {% endtab %}                    |                                            |
| {% endtabs %}                   |                                            |


# Subgraph

Floor's subgraphs are hosted across mainnet and sepolia on The Graph's decentralized network.

#### Mainnet

[https://thegraph.com/explorer/subgraphs/3Mn7ZTjHvYPcNW1KCHtsecdRvo7ANTNtrfMszSeDL7sF](https://thegraph.com/explorer/subgraphs/3Mn7ZTjHvYPcNW1KCHtsecdRvo7ANTNtrfMszSeDL7sF?view=Overview)

#### Sepolia

<https://thegraph.com/explorer/subgraphs/CoLsmL2XfWT8ToEcSYojFQ3ggtW6XmXpzB7J2q58qfwq>


# Audits

FloorDAO comissioned two audits to review the Floor V2 codebase. The first audit was a private code review by aleph\_v that is now publicly available. After resolving the issues outlined by the code review, a second public audit was completed.

The status of all issues raised are available in the audits available below:

Code review: <https://hackmd.io/@geistermeister/HkDp8qYKh>

Public audit: <https://omniscia.io/reports/floordao-core-implementation-v2-64f6f2815a54540014b755f6/>


# Tokenomics

### Launch

FloorDAO was fair launched on a Copper Token Liquidity Bootstrapping Pool (LBP), on Ethereum mainnet, on February 22, 2022 for its valueless governance token **aFLOOR**.\
<https://copperlaunch.com/pools/0x70b18450Bd1F9296C38cC36Ac1369F51F45B95F8>

There were no presale or investors, with the initial capital for the auction provided from a DAO-to-DAO [loan from NFTX DAO](https://snapshot.org/#/nftx.eth/proposal/0x0400bc81f2152772510636f8df9762e14abdeaf9751a50a5c035b93d94aa7421).

aFLOOR or “Alpha FLOOR” will be used to vote in pre-launch governance. Critically, it will be used to vote on the deployment of the protocol, which if passed, will make aFLOOR redeemable 1:1 for FLOOR.

**500,000 aFLOOR** was available in the Copper launch and paired with **500 WETH**.

Post LBP, a portion of the remaining aFLOOR/WETH liquidity was be moved to a Uniswap v3 pool to allow for ongoing price discovery. ETH added to the LBP was used to seed the FloorDAO treasury and kick-start the V1 rebase rewards and bond markets.

{% hint style="info" %}
Floor was funded via a short-term loan from NFTX, as a result there has been no need for investors or a private sale as shown in the token distribution below.
{% endhint %}

### Team allocations

In V1, Floor used the Olympus pOHM model which vested FLOOR tokens based on a fixed "supply share" of an increasing total supply (supply increased through regular rebases). Vesting users could mint FLOOR tokens by depositing 0.001 ETH per FLOOR token into the treasury.

In V2, rebasing was made redundant and the total supply of FLOOR became fixed (although still mintable by governance). For this reason, team, advisor and NFTX vesting has ended and any remaining claimable amounts still require a 0.001 ETH treasury deposit per token.

<figure><img src="/files/jS2l4gvp3B7qQl3pCso5" alt=""><figcaption></figcaption></figure>


# FAQ

### **What are the goals of Floor?**&#x20;

We aim to create a fully on-chain governance mechanism for sweeping and deploying NFTs to profitable NFT-Fi strategies, as well as testing and managing our own products and services in the growing NFT-Fi ecosystem. FLOOR token holders will have ultimate control over which collections are swept on a weekly basis, imbuing the FLOOR token with voting power that can be traded for yield on vote markets. Our primary goal is to drive as much ETH as possible to the sweeping mechanism, scaling the treasury with desirable, yield-generating collections and becoming a major player in the inevitable metaverse future.

### **What does FLOOR do?**

The FLOOR token acts as the gatekeeper of the Floor Treasury, allowing holders to decide which collections are added to and swept by the DAO. Ultimately, FLOOR is a token that coordinates capital to solve the inherent liquidity and financial utility issues of NFT collections.

### **What does the FLOOR token vote on?**

The two core features of Floor governance are:

* New Collection Wars
* Sweep Wars

**New Collection Wars** determine which collections are added to the Floor Treasury, enabling them to be swept every other week in **Sweep Wars**. These two votes exist under the umbrella of the **Floor Wars**.

**Sweep Wars** were previously called **Gauge Votes**, and work the exact same way: 50% of the yield from the subsequent 14 days after the vote is directed to the top voted choices on the Floor Snapshot.

### **Is FLOOR backed by the Treasury?**

Floor's mission is to be an NFT liquidity layer, and the FLOOR token is a governance token that will be used for on-chain voting in V2. FLOOR is currently used in off-chain voting through Snapshot to help signal community interests. FLOOR has no strict requirement for market cap vs treasury parity, but as the DAO contracts become further decentralized and move on-chain these ideas can be explored.