The Technical Infrastructure: CIFI Town Hall System

The governance activities of Circularity Finance are enabled by sophisticated technical infrastructure, with the CIFI Town Hall system serving as the central mechanism for proposal creation, voting, and execution.

TownHall Contract: The Proposal and Voting System

The TownHall contract manages the creation, voting, and initial approval of governance proposals:

• Proposal Creation:

  • Only VIP NFT holders can create proposals

  • Proposals include a title, description, and optional technical details

  • Each proposal has a defined voting period and quorum requirement

  • Proposal creation emits events for community notification

• Voting Mechanism:

  • Supports voting with both CIFI and REFI tokens

  • Different proposal types may have different token weighting

  • Votes are recorded immutably on the blockchain

  • Vote delegation is supported for passive token holders

  • Real-time vote tallying maintains transparency

• Proposal States:

  • Active: Currently open for voting

  • Approved: Passed voting but awaiting execution

  • Rejected: Failed to achieve necessary support

  • Expired: Voting period ended without reaching quorum

  • Queued: Approved and ready for execution after timelock

  • Executed: Successfully implemented

• Security Features:

  • Voting period minimums to ensure adequate review time

  • Quorum requirements to prevent low-participation decisions

  • Vote weight calculations resistant to flash loan attacks

  • Proposal cooling-off periods between approval and execution

  • Transparent on-chain record of all voting activities

The TownHall contract essentially functions as the deliberative body of the governance system, where ideas are proposed, debated (off-chain), and decided through voting.

TownHallExecutor Contract: Implementing Governance Decisions

The TownHallExecutor contract handles the actual execution of approved proposals:

• Action Registration:

  • Executors define specific actions required to implement a proposal

  • Actions are registered with appropriate parameters and targets

  • Complex proposals may involve multiple sequential actions

  • Actions are categorized by type for appropriate security controls

• Action Types:

  • Transfer: Moving tokens or native currency from Treasury

  • ContractCall: Calling functions on external contracts

  • UpdateParameter: Changing protocol parameters

  • AccessControl: Modifying permissions or roles

  • EmergencyAction: Special high-priority operations

• Execution Controls:

  • Only authorized executors can register and trigger actions

  • Multi-signature requirements for sensitive operations

  • Timelock enforcement before execution can occur

  • Verification of proposal state before execution

  • Circuit breakers for emergency situations

• Execution Reporting:

  • Execution results reported back to TownHall

  • Transparent recording of all execution steps

  • Failed executions properly documented with reasons

  • Successful executions update proposal state to "Executed"

  • Events emitted for community monitoring

The TownHallExecutor creates a critical separation between the decision to make a change (voting) and the implementation of that change (execution), providing additional security and oversight for governance operations.

Governance Flow: From Idea to Implementation

The complete governance flow in the CIFI Town Hall system follows these steps:

1. Idea Formation: Community members discuss ideas in forums, Discord, or community calls.

2. Proposal Creation: A VIP NFT holder formalizes the idea into a proposal in the TownHall contract.

3. Discussion Period: The community debates the proposal's merits and potential impacts.

4. Voting Period: CIFI and REFI holders cast their votes according to the proposal's voting parameters.

5. Decision: If quorum is reached and support exceeds the threshold, the proposal is marked as Approved.

6. Timelock Period: A mandatory waiting period (typically 2 days) allows for final review and potential concerns.

7. Queueing: After the timelock expires, the proposal enters the Queued state, ready for execution.

8. Action Registration: Executors register specific technical actions needed to implement the proposal.

9. Execution: The registered actions are executed, implementing the approved changes.

10. Confirmation: The proposal is marked as Executed, and the community is notified of the successful implementation.

This structured flow ensures that governance decisions are made deliberately, with appropriate community input, technical review, and security controls at each stage.

Multi-Chain Governance Challenges and Solutions

As a multi-chain ecosystem, Circularity Finance faces unique governance challenges that the Town Hall system addresses:

• Cross-Chain Proposal Mirroring: Important proposals are mirrored across different blockchain implementations to maintain consistency.

• Chain-Specific Parameters: Some parameters can be chain-specific to account for different blockchain characteristics.

• Bridge Governance: Special governance mechanisms for cross-chain bridges ensure security and consistency.

• Aggregated Voting: For major decisions, voting power can be aggregated across chains to ensure comprehensive representation.

• Execution Coordination: Implementation of approved changes is coordinated across multiple chains to maintain ecosystem coherence.

These mechanisms ensure that while the ecosystem spans multiple blockchains, governance remains coherent and consistent rather than fragmenting into chain-specific silos.