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








clusterL2

L2 Main chain


clusterL1

L1 Ethereum



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. Final