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OZ Governor Proposal

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Overview

Following the addition of FPS to project dependencies, the next step is creating a Proposal contract. This example serves as a guide for drafting a proposal for OZ Governor contract.

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Proposal Contract

The OZGovernorProposal_01 proposal is available in the fps-example-repoarrow-up-right. This contract is used as a reference for this tutorial.

Let's go through each of the overridden functions.

  • name(): Define the name of your proposal.

    function name() public pure override returns (string memory) {
    return "OZ_GOVERNOR_PROPOSAL";
}

  • description(): Provide a detailed description of your proposal.

    function description() public pure override returns (string memory) {
    return "OZ Governor proposal mock 1";
}

  • deploy(): Deploy any necessary contracts. This example demonstrates the deployment of Vault and an ERC20 token. Once the contracts are deployed, they are added to the Addresses contract by calling addAddress().

    function deploy() public override {
    // Set OZ Governor's timelock as the owner for vault and token.
    address owner = addresses.getAddress("OZ_GOVERNOR_TIMELOCK");

    // Deploy vault address if not already deployed and transfer ownership to timelock.
    if (!addresses.isAddressSet("OZ_GOVERNOR_VAULT")) {
        Vault OZGovernorVault = new Vault();

        addresses.addAddress(
            "OZ_GOVERNOR_VAULT",
            address(OZGovernorVault),
            true
        );
        OZGovernorVault.transferOwnership(owner);
    }

    // Deploy token address if not already deployed, transfer ownership to timelock
    // and transfer all initial minted tokens from the deployer to the timelock.
    if (!addresses.isAddressSet("OZ_GOVERNOR_VAULT_TOKEN")) {
        Token token = new Token();
        addresses.addAddress(
            "OZ_GOVERNOR_VAULT_TOKEN",
            address(token),
            true
        );
        token.transferOwnership(owner);

        // During forge script execution, the deployer of the contracts is
        // the DEPLOYER_EOA. However, when running through forge test, the deployer of the contracts is this contract.
        uint256 balance = token.balanceOf(address(this)) > 0
            ? token.balanceOf(address(this))
            : token.balanceOf(addresses.getAddress("DEPLOYER_EOA"));

        token.transfer(address(owner), balance);
    }
}

  • build(): Add actions to the proposal contract. In this example, an ERC20 token is whitelisted on the Vault contract. Then the OZ Governor's timelock approves the token to be spent by the vault, and calls deposit on the vault. The actions should be written in solidity code and in the order they should be executed in the proposal. Any calls (except to the Addresses and Foundry Vm contract) will be recorded and stored as actions to execute in the run function. The caller address that will call actions is passed into buildModifier; it is the OZ Governor's timelock for this example. The buildModifier is a necessary modifier for the build function and will not work without it. For further reading, see the build function.

    function build()
    public
    override
    buildModifier(addresses.getAddress("OZ_GOVERNOR_TIMELOCK"))
{
    /// STATICCALL -- non-mutative and hence not recorded for the run stage

    // Get vault address
    address OZGovernorVault = addresses.getAddress("OZ_GOVERNOR_VAULT");

    // Get token address
    address token = addresses.getAddress("OZ_GOVERNOR_VAULT_TOKEN");

    // Get OZ Governor timelock's token balance.
    uint256 balance = Token(token).balanceOf(
        addresses.getAddress("OZ_GOVERNOR_TIMELOCK")
    );

    /// CALLS -- mutative and recorded

    // Whitelists the deployed token on the deployed vault.
    Vault(OZGovernorVault).whitelistToken(token, true);

    // Approve the token for the vault.
    Token(token).approve(OZGovernorVault, balance);

    // Deposit all tokens into the vault.
    Vault(OZGovernorVault).deposit(token, balance);
}

  • run(): Sets up the environment for running the proposal, and executes all proposal actions. This sets addresses, primaryForkId, and governor and calls super.run() to run the entire proposal. In this example, primaryForkId is set to sepolia and selecting the fork for running the proposal. Next, the addresses object is set by reading from the JSON file. The OZ Governor contract to test is set using setGovernor. This will be used to check onchain calldata and simulate the proposal. For further reading, see the run function.

    function run() public override {
    // Create and select the sepolia fork for proposal execution.
    primaryForkId = vm.createFork("sepolia");
    vm.selectFork(primaryForkId);

    string memory addressesFolderPath = "./addresses";
    uint256[] memory chainIds = new uint256[](1);
    chainIds[0] = 11155111;
    // Set the addresses object by reading addresses from the json file.
    setAddresses(
        new Addresses(addressesFolderPath, chainIds)
    );

    // Set OZ Governor. This address is used for proposal simulation and checking on-chain proposal state.
    setGovernor(addresses.getAddress("PROTOCOL_GOVERNOR"));

    // Call the run function of the parent contract 'Proposal.sol'.
    super.run();
}

  • simulate(): For OZ Governor proposal, this function is defined in the governance specific contract and needs not to be overridden. This function executes the proposal actions outlined in the build() step. First required number of governance tokens are minted to the proposer address. Proposer delegates votes to himself and then proposes the proposal. Then the time is skipped by the voting delay, proposer casts vote and the proposal is queued. Next, time is skipped by the timelock delay and then finally the proposal is executed. Check the code snippet below with inline comments to get a better idea.

    /// @notice Simulate governance proposal
function simulate() public virtual override {
    address proposerAddress = address(1);
    IVotes governanceToken = IVotes(
        IGovernorVotes(address(governor)).token()
    );
    {
        // Ensure proposer has meets minimum proposal threshold and quorum votes to pass the proposal
        uint256 quorumVotes = governor.quorum(block.number - 1);
        uint256 proposalThreshold = governor.proposalThreshold();
        uint256 votingPower = quorumVotes > proposalThreshold
            ? quorumVotes
            : proposalThreshold;
        deal(address(governanceToken), proposerAddress, votingPower);
        vm.roll(block.number - 1);
        // Delegate proposer's votes to itself
        vm.prank(proposerAddress);
        IVotes(governanceToken).delegate(proposerAddress);
        vm.roll(block.number + 2);
    }

    bytes memory proposeCalldata = getCalldata();

    // Register the proposal
    vm.prank(proposerAddress);
    bytes memory data = address(governor).functionCall(proposeCalldata);

    uint256 returnedProposalId = abi.decode(data, (uint256));

    (
        address[] memory targets,
        uint256[] memory values,
        bytes[] memory calldatas
    ) = getProposalActions();

    // Check that the proposal was registered correctly
    uint256 proposalId = governor.hashProposal(
        targets,
        values,
        calldatas,
        keccak256(abi.encodePacked(description()))
    );

    require(returnedProposalId == proposalId, "Proposal id mismatch");

    // Check proposal is in Pending state
    require(governor.state(proposalId) == IGovernor.ProposalState.Pending);

    // Roll to Active state (voting period)
    vm.roll(block.number + governor.votingDelay() + 1);

    require(governor.state(proposalId) == IGovernor.ProposalState.Active);

    // Vote YES
    vm.prank(proposerAddress);
    governor.castVote(proposalId, 1);

    // Roll to allow proposal state transitions
    vm.roll(block.number + governor.votingPeriod());

    require(
        governor.state(proposalId) == IGovernor.ProposalState.Succeeded
    );

    vm.warp(block.timestamp + governor.proposalEta(proposalId) + 1);

    // Queue the proposal
    governor.queue(
        targets,
        values,
        calldatas,
        keccak256(abi.encodePacked(description()))
    );

    require(governor.state(proposalId) == IGovernor.ProposalState.Queued);

    // Warp to allow proposal execution on timelock
    ITimelockController timelock = ITimelockController(
        IGovernorTimelockControl(address(governor)).timelock()
    );
    vm.warp(block.timestamp + timelock.getMinDelay());

    // Execute the proposal
    governor.execute(
        targets,
        values,
        calldatas,
        keccak256(abi.encodePacked(description()))
    );

    require(governor.state(proposalId) == IGovernor.ProposalState.Executed);
}

  • validate(): This final step validates the system in its post-execution state. It ensures that the OZ Governor's timelock is the new owner of the Vault and token, the tokens were transferred to OZ Governor's timelock, and the token was whitelisted on the Vault contract.

    function validate() public override {
    // Get the vault address
    Vault OZGovernorVault = Vault(
        addresses.getAddress("OZ_GOVERNOR_VAULT")
    );

    // Get the token address
    Token token = Token(addresses.getAddress("OZ_GOVERNOR_VAULT_TOKEN"));

    // Get OZ Governor's timelock address
    address timelock = addresses.getAddress("OZ_GOVERNOR_TIMELOCK");

    // Ensure the token total supply is 10 million
    assertEq(token.totalSupply(), 10_000_000e18);

    // Ensure the timelock is the owner of the deployed token.
    assertEq(token.owner(), address(timelock));

    // Ensure the timelock is the owner of the deployed vault
    assertEq(OZGovernorVault.owner(), address(timelock));

    // Ensure the vault is not paused
    assertFalse(OZGovernorVault.paused());

    // Ensure the token is whitelisted on the vault
    assertTrue(OZGovernorVault.tokenWhitelist(address(token)));

    // Get the vault's token balance
    uint256 balance = token.balanceOf(address(OZGovernorVault));

    // Get the timelock deposits in the vault
    (uint256 amount, ) = OZGovernorVault.deposits(
        address(token),
        address(timelock)
    );

    // Ensure the timelock deposit is the same as the vault's token balance
    assertEq(amount, balance);

    // Ensure all minted tokens are deposited into the vault
    assertEq(
        token.balanceOf(address(OZGovernorVault)),
        token.totalSupply()
    );
}

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Proposal Simulation

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Deploying a OZ Governor on Testnet

A OZ Governor contract is needed to be set up on the testnet before running the proposal.

This script DeployOZGovernorarrow-up-right facilitates this process.

Before running the script, add the DEPLOYER_EOA address to the 11155111.json file.

After adding the address, run the script:

Double-check that the ${wallet_name} and ${wallet_address} accurately match the wallet details saved in ~/.foundry/keystores/.

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Setting Up the Addresses JSON

Copy the addresses of the timelock, governor, and governance token from the script output and add them to the 11155111.json file. The file should follow this structure:

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Running the Proposal

The script will output the following:

A DAO member can check whether the calldata proposed on the governance matches the calldata from the script exeuction. It is crucial to note that two new addresses have been added to the Addresses.sol storage. These addresses are not included in the JSON files when proposal is run without the DO_UPDATE_ADDRESS_JSON flag set to true.

The proposal script will deploy the contracts in deploy() method and will generate actions calldata for each individual action along with proposal calldata for the proposal. The proposal can be proposed manually using cast send along with the calldata generated above.

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