# What is Arena DAO?

Empowering Communities to Compete, Govern, and Win

Arena DAO is revolutionizing competitive gaming by creating a decentralized platform where communities come together to **compete, govern, and win**. By combining the robustness of DAO infrastructure with the efficiency of the Neutron network, Arena DAO offers a trust-minimized competition platform that ensures fairness, transparency, and efficient reward distribution.

### What Makes Arena DAO Different?

Arena DAO leverages blockchain technology and smart contracts to create a platform where individuals and communities can participate in a wide range of competitions. With decentralized governance at its core, Arena DAO provides the transparency, security, and autonomy that traditional competition platforms lack.

#### Decentralized Governance

Arena DAO is driven by its users. Through decentralized governance, participants have a direct say in the platform's development and operations. This ensures that decisions reflect the community's best interests, fostering a sense of ownership and engagement.

#### Trust-Minimized Competitions

Using smart contracts and blockchain technology, Arena DAO enforces the rules of each competition impartially and automatically distributes rewards. This eliminates the need for intermediaries and ensures a fair playing field for all participants.

#### Vibrant Ecosystem of Partners

Arena DAO actively fosters partnerships with sponsors, brands, and competitors. This ecosystem offers brands access to an engaged audience and gives competitors exciting opportunities to showcase their skills and earn rewards.

#### Low Fees and High Performance

Deployed on the Neutron network, Arena DAO offers low transaction fees and high performance. With excellent support for CosmWasm and permissionless contract deployments, our platform is both cost-effective and accessible to a global audience.

#### Community-Driven Growth

At Arena DAO, the community is at the heart of everything we do. The platform evolves based on community contributions, ensuring that it continues to meet the needs and desires of its users. This shared ownership ensures sustainable and continuous growth.

### Why Join Arena DAO?

Whether you're a competitor looking for thrilling challenges, a sponsor eager to engage with a passionate community, or an enthusiast ready to be part of something new, Arena DAO is the place for you. By joining Arena DAO, you become part of a movement that's reshaping competitions through decentralization, transparency, and community governance.

### Get Started Today!

* **Compete:** Test your skills in fair and transparent competitions.
* **Govern:** Help shape the future of Arena DAO by participating in its decentralized governance.
* **Win:** Earn real rewards for your participation and dedication.

> **Ready to dive in?** Continue to the next section to learn why Arena DAO was created and the problems it solves.


# Why create the Arena DAO?

Arena DAO was born from recognizing fundamental problems in traditional competition platforms. Let's explore the challenges it addresses and how it provides innovative solutions through blockchain technology.

### 1. Decentralized Competition Resolution

#### The Problem:

Traditional competition platforms often lack transparent dispute resolution mechanisms. When competition outcomes are challenged, participants may face costly or biased processes, with no guarantee of impartiality.

#### Arena DAO's Solution:

Arena DAO introduces a decentralized approach to competition resolution, making the process fair and accessible:

* **Jailed State for Disputes:** If a competition result is disputed, the prize funds are held in a "jailed" state, ensuring they remain secure while the dispute is addressed.
* **Proposal-Based Resolution System:** Anyone can propose the competition's outcome, backed by a proposal deposit. This system incentivizes accurate results and deters false claims.
* **Community Review and Voting:** Proposals undergo community review, where stakeholders vote to approve or reject based on the evidence, ensuring impartial and transparent outcomes.

### 2. Secure, User-Controlled Funds

#### The Problem:

Centralized platforms frequently rely on proprietary credit systems to replicate programmable money, which exposes users to security risks like unauthorized access, withdrawal restrictions, and potential hacking.

#### Arena DAO's Solution:

Arena DAO ensures security and user control over funds by utilizing blockchain for all financial transactions:

* **Blockchain-Based Transactions:** All financial activities are recorded on-chain, creating an immutable, tamper-proof ledger visible to participants.
* **User-Controlled Assets:** Participants retain control of their funds except when they are in competition escrow, ensuring autonomy and security.
* **Low Platform Fees:** Arena DAO's low fees allow participants to maximize their earnings while supporting platform sustainability.
* **Cost-Efficiency with Neutron:** By leveraging Neutron's low gas fees, Arena DAO keeps competition participation affordable and accessible.

### 3. Efficient, Automated Payments to Individual Members

#### The Problem:

Traditional platforms often only facilitate prize distributions at the team level, assuming internal distribution among team members will be managed independently. This lack of automation and transparency can lead to conflicts within teams over payouts, causing delays and distrust.

#### Arena DAO's Solution:

Arena DAO streamlines prize distributions with automated, individual payouts directly to each member:

* **Automated Member-Level Payments:** Winnings are allocated automatically to each team member's escrow balance, ensuring prompt and fair distribution without team-level conflicts.
* **Pre-Configured Distribution Rules:** Prize allocations follow preset configurations, eliminating manual errors and delays in payment.
* **Immediate Access to Funds:** Arena DAO's system ensures that winnings are accessible to individual participants instantly, enhancing satisfaction and fostering trust.

### 4. Empowering Competitive Organizations with DeFi and Governance

#### The Problem:

Traditional competitive organizations are often limited to centralized competition platforms or Discord servers, which restrict their ability to innovate, manage finances, and meaningfully engage members. Without access to decentralized finance (DeFi) tools, these organizations miss opportunities to empower their members and realize their full potential.

#### Arena DAO's Solution:

Arena DAO paves the way for competitive organizations to transition on-chain, leveraging the robust DeFi suite provided by Neutron and the interchain governance capabilities of DAO DAO. This powerful combination enables organizations to operate as fully autonomous, self-governing entities:

* **Comprehensive DeFi Access with Neutron:** Arena DAO provides organizations access to Neutron's full suite of DeFi tools, including decentralized treasury management, staking, lending, and token issuance, elevating their financial independence and operational flexibility.
* **Interchain Governance with DAO DAO:** Utilizing DAO DAO's advanced governance features, organizations on Arena DAO can govern themselves beyond the limitations of traditional platforms, making decentralized, on-chain decisions accessible to all members.
* **Enhanced Member Engagement and Ownership:** Members gain a stake in governance, directly participating in key decisions, fund management, and shaping the organization's future, fostering a sense of ownership and involvement.
* **Transparent, On-Chain Operations:** Every decision and transaction is publicly recorded on-chain, ensuring transparency and accountability that builds trust within the community.

### 5. Community and Ecosystem Support

#### The Problem:

On traditional platforms, sponsored events and partnerships can often feel transactional—like a one-time exchange without genuine alignment between the platform and the organizations involved. This "here's some money, do this, and move on" approach can lead to disengagement and lost opportunities for deeper collaboration.

#### Arena DAO's Solution:

Arena DAO fosters a collaborative ecosystem where everyone is invested in the success of the platform. As Arena DAO thrives, it creates more opportunities for communities to participate and win in competitive events, driving a cycle of mutual benefit:

* **Aligned Incentives for Mutual Success:** Arena DAO's success benefits every community member by unlocking more events, partnerships, and resources.
* **DAO-to-DAO Partnerships:** Arena DAO supports enduring partnerships between DAOs, enabling organizations to share resources, best practices, and innovative ideas.
* **Ongoing Support for Sponsored Events:** Rather than one-off sponsorships, Arena DAO promotes sustained engagement with sponsored organizations, providing guidance, resources, and follow-up opportunities.

### 6. Open-Source Infrastructure

#### The Problem:

The competitive industry lacks open-source tools for building and collaborating on customized competition platforms, limiting flexibility and innovation.

#### Arena DAO's Solution:

Arena DAO provides open-source infrastructure that allows developers to create tailored competition solutions:

* **Modular Competition Frameworks:** Our open-source smart contracts enable developers to build and customize platforms to meet specific needs.
* **Arena Core and Competition Modules:** Flexible modules support unique rules and formats, providing unparalleled adaptability for various competition types.
* **Community-Driven Innovation:** Arena DAO encourages community contributions, ensuring the platform evolves with new features, tools, and enhancements.
* **Developer Resources:** Comprehensive documentation and tutorials make it easy to integrate Arena DAO's infrastructure, empowering developers to build competitive experiences with ease.

> **Ready to join the revolution?** Continue to the next section to learn how to get started with Arena DAO.


# How to get started?

This guide will walk you through joining Arena DAO, from setting up your wallet to getting cryptocurrency, so you can dive into decentralized competitions with ease.

{% embed url="<https://drive.google.com/file/d/1g1Jvy-AKbhVu6icL8h15es4C55Clevxu/view?usp=sharing>" %}

### Step 1: Set Up Your Wallet

To get started, you'll need a wallet that supports the Cosmos ecosystem. Here are two easy-to-use options:

{% hint style="info" %}
Follow the steps to install the wallet and make sure to **save your recovery phrase** in a safe place—this is crucial for securing your funds. Never share it with others.
{% endhint %}

{% embed url="<https://www.keplr.app/>" %}
Keplr Wallet
{% endembed %}

{% embed url="<https://www.leapwallet.io/>" %}
Leap Wallet
{% endembed %}

### Step 2: Buy Cryptocurrency (On-Ramp)

To participate in Arena DAO, you need cryptocurrency. Below are two options for acquiring the correct tokens.

#### Option A: Use a Centralized Exchange (CEX)

1. **Sign up** for a trusted exchange like [**Coinbase**](https://www.coinbase.com/), [**Binance**](https://www.binance.com/), or [**Kraken**](https://www.kraken.com/).
2. **Buy the Correct Cryptocurrency**
   * **For USDC**:
     * Purchase **USDC** (USD Coin), a stablecoin pegged to the US Dollar.
     * **Important**: Ensure the exchange allows withdrawals of USDC on the **Noble network**. If not, consider buying **NTRN** or **ATOM** instead.
   * **For NTRN:**
     * Buy **NTRN**, the native token of the Neutron network.
   * **For ATOM**:
     * Buy **ATOM**, the native token of the Cosmos network, which is widely supported.
3. **Withdraw Tokens to Your Wallet Address**
   1. **Access the Withdrawal Section**:
      * Navigate to the **"Withdraw"** or **"Send"** section of the exchange.
   2. **Enter Your Wallet Address**:
      * Open your Keplr or Leap wallet to copy your **wallet address**.
      * Paste it into the withdrawal form on the exchange.
   3. **Select the Correct Network**:
      * For **USDC**:
        * Choose the **Noble network** as the withdrawal network.
        * **Note**: USDC exists on multiple networks (like Ethereum and Solana). It's crucial to select **Noble** to ensure compatibility.
      * For **NTRN:**
        * Select the **Neutron network**.
      * For **ATOM**:
        * Select the **Cosmos Hub network**.
   4. **Confirm the Withdrawal**:
      * Double-check all details.
      * Confirm and submit the withdrawal request.
      * Wait for the transaction to complete (may take a few minutes).

#### Option B: Use an On-ramp Service

These services allow you to purchase cryptocurrency directly with your bank account or credit card into our Keplr or Leap wallet.

* [**Kado**](https://www.kado.money/):
  * Visit the Kado website.
  * Choose **USDC** or **ATOM**.
  * Enter your Neutron or Cosmos wallet address.
  * Complete the purchase using your credit card or bank transfer.
* [**Monerium**](https://monerium.com/) (For European Users):
  * Sign up on Monerium.
  * Purchase **EURe**.
  * Provide your Neutron wallet address for direct transfer.

### Step 3: Transfer Funds to the Neutron Network (if your assets are not already on Neutron)

If you’ve acquired tokens like **USDC**, **ATOM**, or **EURe** but they are not yet on the **Neutron network**, you will need to bridge them over. Use one of the following bridging solutions:

{% embed url="<https://app.neutron.org/bridge>" %}
Neutron Bridge
{% endembed %}

### Step 4: Establish a Team via DAO DAO (Optional)

If you're interested in forming a team to participate in competitions and make use of automatic distributions, you can set up a team using **DAO DAO**, which helps you create and manage decentralized organizations.

**How to Set Up a Team:**

1. **Visit the DAO DAO Platform**:
   * Go to [**DAO DAO**](https://daodao.zone/).
2. **Create a New DAO**:
   * Click on **Create** and follow the instructions to establish your team.
   * This will guide you through the process of naming your DAO, setting up governance rules, and adding members.
   * Your DAO's address will be available in the URL of your DAO page.
3. **Use the Apps Tab**:
   * Once your DAO is created, navigate to the **Apps** tab on your DAO's page to perform actions through your DAO on other sites (step 5).

{% embed url="<https://docs.daodao.zone/introduction/welcome-to-dao-dao>" %}
DAO DAO Docs
{% endembed %}

### Step 5: Enter The Arena!

Now that your wallet is set up and your funds are on the **Neutron network**, you’re ready to dive into **The Arena** and start competing.

1. Visit [The Arena](https://arenadao.org) website.
2. Click on **Connect Wallet** and select your wallet provider (e.g., Keplr or Leap).
3. Approve the connection request in your wallet to give access.
4. Start exploring available competitions or create your own.


# How to withdraw?

This guide will help you convert your cryptocurrency on the **Neutron network** into fiat currency that can be withdrawn to your bank or spent through services like **Cypher Card**.

### Step 1: Transfer Assets to the Noble Network

The first step is to move your assets like from Neutron to a network compatible with off-ramping, such as the **Noble** network or **Osmosis**.

{% embed url="<https://app.neutron.org/bridge?dest_asset=uusdc&dest_chain=noble-1>" %}

### Step 2: Off-Ramp

Now that your assets are on the correct network, you can choose between two off-ramping options:

#### **Option A: Withdraw to a Centralized Exchange (CEX)**

This option allows you to transfer your **USDC** or **EURe** from Noble or Osmosis to a centralized exchange and withdraw it to your bank.

1. **Choose Your Exchange**:
   * Supported exchanges include **Coinbase**, **Kraken**, or **Binance**.
2. **Get Your Deposit Address**:
   * Log in to your exchange and find the **Deposit** section.
   * Select **USDC** and make sure the deposit network is **Noble** or **Osmosis**.
   * Copy the deposit address.
3. **Transfer from Noble or Osmosis**:
   * In your Keplr or Leap wallet, go to **Send** or **Withdraw**.
   * Enter the CEX deposit address you copied and confirm the transaction.
4. **Convert to Fiat**:
   * Once the tokens arrive in your CEX account, swap them for fiat currency (e.g., USD or EUR).
5. **Withdraw to Your Bank**:
   * Go to the **Withdraw** section, select your bank account as the destination, and confirm.

#### Option B: Monerium for EURe

**Monerium** provides a seamless way for European users to withdraw funds in the form of **EURe**, a regulated, blockchain-based euro token.

1. **Create a Monerium Account**
   * Visit <https://monerium.app/> and sign up for an account.
   * Complete the **KYC (Know Your Customer)** verification process as required.
2. **Connect Your Wallet**
   * Link your blockchain wallet to your Monerium account.
3. **Withdraw to Your Bank Account**
   * After your EURe deposit is confirmed, initiate a withdrawal to your **European bank account** (SEPA zone).
   * Monerium will handle the conversion of EURe to euros and deposit the funds directly to your bank account.

#### **Option C: Spend Using Cypher Card**

You can also load your **USDC** or **EURe** onto a **Cypher Card** to spend it directly.

1. **Sign Up for Cypher Card**:
   * Visit [**Cypher Card**](https://cyphercard.io/) and create an account. Referral code: **ARENADAO1**
2. **Start Spending**:
   * Use the Cypher Card for everyday purchases or ATM withdrawals.


# Contributor Guideline

Arena DAO is a decentralized competition platform that thrives on community involvement. Here are ways you can actively contribute and help us grow:

### 1. Development

* **Code Contributions**: Join us in developing and refining smart contracts, user interfaces, and backend infrastructure.
* **GitHub Collaboration**: Contribute to Arena DAO’s open-source projects and repositories.
* **Code Reviews**: Enhance code quality through code reviews and discussions on architecture.
* **Feature Implementation**: Propose and implement innovative features that elevate the platform.

### 2. Testing and Feedback

* **Beta Testing**: Be among the first to test new features, providing essential feedback on functionality and performance.
* **User Experience Insights**: Share detailed feedback on the UX/UI, helping us create a seamless user experience.
* **Bug Reporting**: Submit clear, thorough bug reports and feature requests to aid in continuous improvement.
* **Suggestions for Improvement**: Offer actionable suggestions to improve Arena DAO based on your experience.

### 3. Community Growth

* **Social Engagement**: Connect and engage with our community on Twitter, Discord, and Telegram, and help grow Arena DAO’s presence.
* **Content Creation**: Share Arena DAO with the world by writing blog posts, articles, or creating videos and other educational content.
* **Strategic Partnerships**: Assist in building partnerships with other projects, DAOs, and communities.
* **Events & Workshops**: Organize or participate in events and workshops to foster community connections and promote Arena DAO.

### 4. Governance Participation

* **Active Voting and Discussions**: Engage in DAO governance by participating in discussions, voting on proposals, and sharing feedback.
* **Submit Proposals**: Propose improvements and advocate for enhancements that will drive the platform forward.
* **Provide Strategic Insights**: Offer ideas and feedback on Arena DAO’s strategic direction to influence key decisions.
* **Collaborative Consensus-Building**: Work with community members to build consensus and implement meaningful change.

### 5. Creative Contributions

* **Media and Content Production**: Create visually engaging graphics, videos, and multimedia to support community efforts.
* **Design**: Craft promotional materials, infographics, and decks that communicate Arena DAO’s vision.
* **Educational Resources**: Develop tutorials, guides, and other resources to onboard new users.
* **Documentation**: Help keep our documentation up-to-date, building a knowledge base that supports our community.

***

### Compensation and Incentives

We value and recognize our contributors, and Arena DAO provides multiple ways to reward your impactful contributions:

{% hint style="info" %}
**Note**: All compensation mechanisms are designed to comply with relevant laws and regulations. Participation is voluntary and does not constitute an investment or an offer of securities.
{% endhint %}

#### 1. **Direct Membership Inclusion and Voting Power**

* **Membership-Based Governance**: Contributors gain direct membership within Arena DAO, granting them a voice in governance decisions. This inclusion not only rewards their involvement but also integrates them into the DAO’s core decision-making, enhancing their influence on key initiatives.
* **Enhanced Voting Rights**: Members who make consistent, impactful contributions can earn increased voting weight, allowing them to play a larger role in shaping the DAO’s future.

#### 2. **Retroactive Compensation and Recognition**

* **Retroactive Rewards**: Eligible contributors are recognized and rewarded retroactively for past efforts that significantly advanced the DAO’s mission, ensuring impactful contributions are valued.
* **Community Recognition**: Participate in community-driven nominations and voting to identify and reward outstanding contributors.


# Arena Core

The Arena Core is the central component of our architecture, storing and managing information critical to all competitions within the Arena DAO ecosystem. It serves as the backbone for our decentralized competition platform, ensuring consistency, fairness, and efficiency across all activities.

{% hint style="info" %}
Please note that the smart contracts used in this project have **not been audited**. While every effort has been made to ensure the security and accuracy of the code, we strongly advise conducting your own thorough review and due diligence before interacting with these contracts.
{% endhint %}

### Integration with DAO Pre-Propose Module

The Arena Core is built as an extension of a 'DAO pre-propose module', which allows for a streamlined dispute resolution process. This design enables the specific proposal of jailing competitions on the DAO, ensuring community-driven conflict resolution.

The proposal module is configured for revoting, meaning that jailed competitions will be resolved by a majority vote after a predetermined period. This approach guarantees fair and transparent dispute resolution, with the community having the final say on the outcome of disputed competitions.

### Key Components of the Arena Core

#### 1. Category Management

* Defines and manages distinct competition categories, ensuring a clear structure and organization within the platform
* Links categories to specific rulesets and rating systems, maintaining consistency and fairness across competitions

#### 2. Competition Jailing Mechanism

* Allows for the proposal of jailing competitions that are in dispute, preventing the continuation of controversial competitions until resolved
* Ensures community-driven dispute resolution through majority voting, giving the power to the community to decide on the outcome of disputed competitions

#### 3. Competitor Rating System

* Tracks and manages competitor rankings per category, providing a clear and transparent system for assessing participant performance
* Implements the Glicko-2 algorithm for fair and accurate rating calculations, ensuring that rankings reflect the true skill level of competitors

#### 4. Rulesets Repository

* Stores standardized rulesets per category, ensuring that all competitions within a category follow the same set of rules
* Allows for the creation and modification of custom rulesets, providing flexibility for unique competition formats
* Ensures consistency in rule application within each category, maintaining fairness and predictability for participants

#### 5. Competition Modules

* Modular components for creating diverse competition formats, allowing for a wide range of competition types and structures
* Enables easy creation and integration of new competition formats, fostering innovation and creativity within the platform

#### 6. Tax Rate Management

* Manages the platform's fee structure to sustain the ecosystem and support ongoing development and maintenance
* The tax rate at launch will be set at 5% of competition entry fees and prizes
* The tax rate can be updated through the DAO governance process, ensuring that the community has a say in the financial aspects of the platform

The Arena Core is designed to be robust, flexible, and community-driven, providing a solid foundation for the Arena DAO ecosystem to grow and thrive.


# Payment Registry

The Arena Payment Registry is designed to streamline and automate the distribution of competition rewards. This smart contract allows participants to predefine how their potential winnings should be allocated, enabling efficient and transparent payouts without requiring additional actions after a competition concludes.

### How It Works

1. **Integration with Arena Core**: The Payment Registry is queried by the competition modules during competition distributions.
2. **User-Defined Distributions**: Participants can set their desired distribution patterns before a competition is fully-funded (activated).
3. **Immutable Records**: The distribution is locked in at the competition's activation block height.
4. **Automatic Payouts**: When rewards are distributed, they are automatically subdivided according to the predefined allocations.

### Key Features

#### 1. Flexible Distribution Setting

Users can define complex distribution patterns to suit their needs. For example, a team could set up a distribution where:

* 50% goes to the team captain
* 30% is split equally among other team members
* 20% goes to the team's charity fund

#### 2. Immutability for Fairness

Once a competition is activated, the distribution set in the registry becomes immutable for that specific competition. This ensures that participants cannot change the payout structure after seeing the competition results, maintaining fairness and preventing disputes.

#### 3. Efficient Querying

The registry is designed for efficient querying, allowing the Arena Core to quickly retrieve distribution information for multiple participants when processing competition rewards.

### Use Cases

#### Team Payouts

A gaming team participating in an Arena tournament can predefine how their winnings should be split among team members, coaches, and the organization. This eliminates the need for manual calculations and transfers after each competition.

#### Affiliate Programs

Influencers or affiliates can set up distributions where a percentage of their winnings automatically goes to their followers or community members who supported their participation.

#### Charity Contributions

Participants can allocate a portion of their potential winnings to charitable causes, automating their contributions and increasing transparency.


# Escrow

Ensuring Fair and Transparent Fund Management

The escrow system is a cornerstone of Arena DAO's competition platform, ensuring fair and transparent management of funds and assets. Working in conjunction with the [Payment Registry](/the-arena-architecture/payment-registry), it provides a secure and reliable way to handle participant contributions, prize distributions, and withdrawals.

### Funding

* **Multi-Token Support**: Handles multiple token types, including:
  * CW20 tokens (fungible tokens)
  * Native tokens (e.g., ATOM, OSMO)
  * CW721 tokens (non-fungible tokens, or NFTs)
* **Locking Mechanism**: Secures funds once the competition is fully funded.
* **Withdrawal**: Allows fund withdrawal when in an unlocked state.

### Fund Distribution

* **Member-Percentage Distribution**: Allocates funds based on predefined percentages.
* **Remainder Address**: Receives leftover funds and all NFTs.

### Escrow States

1. **Unlocked**: Ready to receive funds and allow withdrawals.
2. **Locked**: Funds secured during the competition.

### Workflow

1. **Competition Setup**
   * Organizers create the competition and set parameters.
   * Participants register and set their distribution preferences in the Payment Registry.
2. **Funding Phase**
   * Escrow is in the Unlocked state.
   * Participants send required contributions to the escrow.
   * Once fully funded, the escrow transitions to the Locked state.
   * The competition's activation height is recorded.
3. **Competition Active**
   * Escrow remains in the Locked state.
   * Payment Registry records are immutable for this competition.
4. **Competition Conclusion**
   * Arena Core determines the winners and prize allocations.
5. **Distribution Process**
   * Arena Core queries the Payment Registry for each winner's distribution preferences.
   * The query uses the winner's address and the recorded activation height.
   * Escrow system processes distributions based on: a. Competition-level allocations (e.g., 1st place, 2nd place) b. Individual winner's Payment Registry preferences
6. **Withdrawal Phase**
   * Escrow transitions back to the Unlocked state.
   * Winners (individuals or teams) can withdraw their allocated funds.
   * For team distributions:
     * Funds are automatically subdivided according to the Payment Registry records.
     * Team members can withdraw their individual allocations directly.


# Competition Modules

Arena DAO offers a diverse range of competition modules, each designed to cater to different types of contests and user preferences. Our modular approach allows for flexible, scalable, and customizable competition experiences within the decentralized ecosystem.

{% @mermaid/diagram content="flowchart TB
Start(\[Start]) --> HasDues{Competition<br>Has Dues?}
HasDues -->|Yes| PendingDues\[Pending:<br>Awaiting Dues]
HasDues -->|No| ActiveCompetition\[Active Competition]

```
PendingDues -->|All Dues Paid| ActiveCompetition

ActiveCompetition -->|Expiration Reached| ConsensusCheck{Consensus<br>Reached?}
ConsensusCheck -->|Yes| InactiveCompetition[Inactive Competition]
ConsensusCheck -->|No| JailedCompetition[Jailed Competition]

JailedCompetition -->|Arena DAO<br>Resolves| InactiveCompetition

InactiveCompetition --> End([End])

UnlockedEscrow[Escrow:<br>Unlocked] -->|Competition<br>Activated| LockedEscrow[Escrow:<br>Locked]
LockedEscrow -->|Competition<br>Resolved| UnlockedEscrow

PendingDues -.-> UnlockedEscrow
ActiveCompetition -.-> LockedEscrow
InactiveCompetition -.-> UnlockedEscrow

classDef default fill:#4EA5D9,stroke:#2E4057,stroke-width:2px,color:#2E4057;
classDef decision fill:#F99B45,stroke:#2E4057,stroke-width:2px,color:#2E4057;
classDef escrow fill:#73D2DE,stroke:#2E4057,stroke-width:2px,color:#2E4057;
classDef startend fill:#2ECC71,stroke:#2E4057,stroke-width:2px,color:#2E4057;

class HasDues,ConsensusCheck decision;
class UnlockedEscrow,LockedEscrow escrow;
class Start,End startend;
```

" %}

### Available Modules

{% content-ref url="/pages/NKTSFHDHCridgkxomlxM" %}
[Wagers](/the-arena-architecture/competition-modules/wagers)
{% endcontent-ref %}

{% content-ref url="/pages/UZH5kOEypeVt1MCKT3UI" %}
[Leagues](/the-arena-architecture/competition-modules/leagues)
{% endcontent-ref %}

{% content-ref url="/pages/mIgrcNWgFlNBFgZjzyxT" %}
[Tournaments](/the-arena-architecture/competition-modules/tournaments)
{% endcontent-ref %}


# Wagers

The Wager Module is a specific implementation of a competition module within the Arena ecosystem. It enables users to create and manage decentralized wagers in a transparent, fair, and engaging manner.

## Key Components

### 1. Wager Management

#### a. Host

* **Options**:
  * Assign a specific referee (individual account).
  * Designate a pre-created DAO (e.g., a referee DAO).
* **Role**: Processes and finalizes the results of the wager.

#### b. Configuration

* **Name**: Unique identifier for the wager.
* **Description**: Comprehensive overview of the wager.
* **Banner**: Optional image representation.
* **Expiration**: Defines the end point (time, block height, or never).
  * Note: If not processed by expiration, the wager can be "jailed" and resolved only by the Arena DAO.
* **Rules**: Guidelines governing the wager.
* **Rulesets**: Pre-defined sets of rules that can be applied if available for the wager's category.

### 2. Financial Management

#### Dues

* Define stakes for the wager.
* Specify funding sources and amounts.
* For detailed information about dues handling, refer to the [Escrow page](/the-arena-architecture/escrow).

#### 3. Stat Tracking

* **Performance Metrics**: Track key indicators for participants (e.g., win/loss ratio, total wagers won).
* **Achievements**: Award recognitions for outstanding performances or milestones.
* **Data Visualization**: Present stats in easily digestible formats (graphs, charts).


# Leagues

The Arena League Module is an advanced implementation of a competition module within the Arena ecosystem. It builds upon the concepts of the Wager Module to enable the creation and management of round-robin style tournaments.

## Key Components

### 1. League Management

#### a. Host

* **Options**:
  * Assign a specific referee (individual account).
  * Designate a pre-created DAO (e.g., a referee DAO).
* **Role**: Manages the league, inputs match results, and oversees the tournament progression.

#### b. Configuration

* **Name**: Unique identifier for the league.
* **Description**: Comprehensive overview of the league.
* **Banner**: Optional image representation.
* **Expiration**: Defines the end point (time, block height, or never).
  * Note: If not processed by expiration, the league can be "jailed" and resolved only by the Arena DAO.
* **Rules**: Guidelines governing the league.
* **Rulesets**: Pre-defined sets of rules that can be applied if available for the league's category.

### 2. Financial Management

Dues

* Define stakes or entry fees for the league.
* Specify funding sources and amounts.
* For detailed information about dues handling, refer to the Escrow page.

### 3. League-Specific Parameters

#### a. Teams

* List of participating teams or individuals in the league.

#### b. Points System

* **Match Win Points**: Points awarded for winning a match.
* **Match Draw Points**: Points awarded for a draw.
* **Match Lose Points**: Points awarded for losing a match.

#### c. Distribution

* Defines how the prize pool will be distributed among final placements.

#### 4. Stat Tracking

* **Performance Metrics**: Track key indicators for participants (e.g., wins, losses, draws, total points).
* **Leaderboards**: Real-time rankings based on points and other criteria.
* **Tiebreaker Mechanism**: Utilize tracked stats to resolve ties in final standings.
* **Achievements**: Award recognitions for outstanding performances or milestones.
* **Data Visualization**: Present stats in easily digestible formats (graphs, charts).

## How It Works

1. **Tournament Setup**
   * Organizers define standard competition details, list of participants, final distribution, and points system.
   * The module automatically generates rounds with matches to ensure all participants play each other once.
2. **Match Management**
   * As each match concludes, the host inputs results into the system.
   * The leaderboard is dynamically updated according to the league's configuration.
3. **Point Adjustments**
   * The host has the ability to adjust points to penalize or reward teams outside of match results.
4. **End of Tournament Processing**
   * When all matches are completed, the module calculates final standings.
   * Prize funds are automatically distributed based on the predefined distribution.
   * The algorithm efficiently handles placement ties to ensure fair distribution.


# Tournaments

The Arena Tournament Module is an advanced implementation of a competition module within the Arena ecosystem. It enables the creation and management of elimination-style tournaments, offering both single and double elimination formats.

## Key Components

### 1. Tournament Management

### a. Host

* **Options**:
  * Assign a specific referee (individual account).
  * Designate a pre-created DAO (e.g., a referee DAO).
* **Role**: Manages the tournament, inputs match results, and oversees the event progression.

### b. Configuration

* **Name**: Unique identifier for the tournament.
* **Description**: Comprehensive overview of the tournament.
* **Banner**: Optional image representation.
* **Expiration**: Defines the end point (time, block height, or never).
  * Note: If not processed by expiration, the tournament can be "jailed" and resolved only by the Arena DAO.
* **Rules**: Guidelines governing the tournament.
* **Rulesets**: Pre-defined sets of rules that can be applied if available for the tournament's category.

### 2. Financial Management

Dues

* Define stakes or entry fees for the tournament.
* Specify funding sources and amounts.
* For detailed information about dues handling, refer to the Escrow page.

### 3. Tournament-Specific Parameters

#### a. Elimination Type

Choose from the following options:

* Single Elimination without Third Place Match
* Single Elimination with Third Place Match
* Double Elimination

#### b. Teams

* List of participating teams or individuals in the tournament, ordered by seeding.

#### c. Distribution

* Defines how the prize pool will be distributed among final placements.

#### 4. Stat Tracking

* **Performance Metrics**: Track key indicators for participants (e.g., wins, losses, round reached).
* **Bracket Visualization**: Real-time display of the tournament bracket and progression.
* **Historical Data**: Maintain records of past tournaments, matches, and outcomes.
* **Achievements**: Award recognitions for outstanding performances or milestones.
* **Data Visualization**: Present stats in easily digestible formats (graphs, charts).

## How It Works

1. **Tournament Setup**
   * Organizers define standard competition details, list of seeded participants, elimination type, and prize distribution.
   * The module automatically generates the tournament bracket based on the chosen elimination type and number of participants.
2. **Bracket Generation**
   * An optimal algorithm is used to create the tournament bracket.
   * The algorithm gives preference to higher-seeded teams, ensuring a fair and competitive structure.
3. **Match Management**
   * As each match concludes, the host inputs results into the system.
   * The bracket is dynamically updated, and the next round of matches is automatically determined.
4. **Tournament Progression**
   * Single Elimination: Losers are eliminated, winners progress to the next round.
   * Double Elimination: Losers move to a "losers' bracket" for a second chance, winners continue in the "winners' bracket". A rebuttal match will be played if the loser's bracket winner beats the winners' bracket winner.
5. **End of Tournament Processing**
   * When all matches are completed, the module determines the final placements.
   * Prize funds are automatically distributed based on the predefined distribution.


# Competition Enrollment

Crowdfunded Competitions

This page outlines the process of creating and joining crowdfunded competitions on the Arena DAO platform.

### Creating a Crowdfunded Competition

1. **Competition Details**:
   * Specify the competition name, description, and category (e.g., gaming, sports, e-sports)
   * Set the start and end dates for the competition
   * Determine the minimum and maximum number of participants
2. **Entry Fee and Prize Pool**:
   * Set the entry fee for participants (e.g., $10)
   * Define the target prize pool based on the entry fee and maximum participants (e.g., $1000 for 100 participants at $10 each)
   * Specify the minimum number of participants required for the competition to proceed
3. **Prize Distribution**:
   * Determine the prize distribution structure (e.g., winner-takes-all, top 3 places, or a more complex tier system)
   * Specify the percentage of the prize pool allocated to each winning position
4. **Competition Rules and Guidelines**:
   * Clearly outline the rules and guidelines for the competition
   * Specify any entry requirements, such as minimum skill level or geographic restrictions
   * Define the competition format (e.g., single elimination, round-robin, or a unique structure)
5. **Publishing and Promotion**:
   * Review and confirm all competition details
   * Publish the competition on the Arena DAO platform
   * Promote the competition through social media, gaming communities, and other relevant channels


# Augmented Bonding Curve

An Augmented Bonding Curve (ABC) is an advanced financial mechanism used in decentralized finance (DeFi) to create and manage sustainable token economies. It builds upon traditional bonding curves, incorporating additional features to ensure a more robust and balanced ecosystem.

For a deep dive into ABCs, check out these resources:

* [Deep Dive: Augmented Bonding Curves](https://medium.com/commonsstack/deep-dive-augmented-bonding-curves-b5ca4fad4436)
* [Continuous Organizations](https://medium.com/hackernoon/introducing-continuous-organizations-22ad9d1f63b7)

The implementation can be found [here](https://github.com/ismellike/dao-contracts/tree/fork/v2.5.0-arena/contracts/external/cw-abc).

> **Note:** The tokenomics described below are subject to change before the official launch of the Arena token. Please refer to our official communications for the most up-to-date information.

### Arena DAO's Transition to ABC

#### Initial Phase: Membership-Based DAO

Arena DAO will start as a membership-based organization, focusing on building a strong community foundation and establishing decentralized governance frameworks.

#### Transition: Token-Based Model

As we grow, we'll transition to a token-based model using the ABC, which will automate token supply management and align incentives between the DAO and early contributors.

### ABC Configuration for Arena DAO

* **Token:** ARENA
* **Total Supply:** 1,000,000 tokens
* **Pricing Model:** Square-root curve with USDC

#### Token Distribution

* Founder: 200,000 tokens (20%)
* Arena Gladiators: 50,000 tokens (10%)
* DAO Treasury: 350,000 tokens (35%)
* Open Phase Mint: 400,000 tokens (40%)

### Phases of the ABC

#### 1. Hatch Phase

* **Total Allocation:** 600,000 tokens (60% of total supply)
* **Participants:** Founder, Arena Gladiators, Arena DAO
* **Exclusivity:** Only approved contributors can participate
* **Key Features:**
  * Initial token distribution to core team and early supporters
  * Establishes the foundation for the DAO's token economy
  * No public trading or liquidity at this stage

#### 2. Open Phase

* **Available for Minting:** 400,000 tokens (40% of total supply)
* **Entry Fee:** 99.995% (directly funds DAO treasury)
* **Exit Fee:** None
* **Key Features:**
  * Public participation begins
  * Continuous token minting based on the bonding curve

#### 3. Closed Phase (Future Consideration)

* **Purpose:** Potential mechanism for graceful shutdown or transition
* **Key Features:**
  * Allows only selling of tokens into the curve
  * No new minting permitted
  * Potential complete liquidation mechanism (not currently on roadmap)

### ABC Visualized

{% embed url="<https://docs.google.com/spreadsheets/d/1UihzlAW_EgawsUIFcXlEUOCqGOwHfhVXwD-sIAUy7_s/edit?usp=sharing>" fullWidth="true" %}
Charts on right side
{% endembed %}


# Token Gateway

The Arena Token Gateway serves as an important tool for onboarding key members into the DAO, managing the community-driven application process and token distribution through vesting. This contract enables the DAO to carefully curate the influx of new talent while fostering long-term commitment and alignment with the DAO's vision.

### Key Features

* **Streamlined Application Process**: Easy submission and management of DAO membership applications.
* **Fair Review System**: Applications are reviewed through the DAO's democratic governance process.
* **Incentive Alignment**: Accepted members receive tokens with some upfront and the rest through a vesting schedule, encouraging long-term participation.
* **Flexible Management**: Applicants can update or withdraw their applications as needed.

### How It Works

1. **Apply for Membership**: Potential members submit their applications, detailing their background, skills, and how they plan to contribute to the DAO.
2. **Community Review**: Existing DAO members review and discuss applications through the governance system.
3. **Decision and Onboarding**:
   * If accepted, the new member starts receiving DAO tokens according to the vesting schedule.
   * If rejected, applicants receive feedback and can improve their application for future consideration.
4. **Ongoing Participation**: As new members receive their tokens over time, they become increasingly invested in the DAO's success.


# Treasury

The Arena DAO's Treasury is a vital component of our ecosystem, designed to manage funds, support and incentivize community growth, development, and engagement. This treasury contains a significant allocation of ARENA tokens and serves as a financial backbone that grows over time through various revenue streams.

### Treasury Allocation and Growth

Initial Allocation: 350,000 ARENA tokens (35% of the total token supply)

The Treasury is not static; it's designed to grow over time through:

1. Revenue from the Augmented Bonding Curve (ABC)
2. Protocol revenue
3. Investment returns from treasury activities
4. Protocol-owned Liquidity

This growth mechanism ensures the long-term sustainability and expanding impact of the Treasury.

### Spending Guidelines

The Treasury funds are managed through careful governance and strategic planning. The following guidelines outline how these funds will be utilized:

#### 1. Retroactive Funding Phases

We implement a series of retroactive funding phases to reward valuable contributions to the DAO. This approach incentivizes high-quality work and aligns contributor interests with the long-term success of the Arena DAO.

{% content-ref url="/pages/rjD5kNDYdQSvFyhBBYRb" %}
[Contributor Guideline](/introduction/contributor-guideline)
{% endcontent-ref %}

#### 2. Liquidity Mining Incentives

To encourage liquidity provision and strengthen the ARENA token's market, we will establish liquidity mining programs:

* Reward liquidity providers
* Design time-locked incentives to promote long-term liquidity commitment
* Regularly review and adjust incentive structures based on market conditions and DAO goals

#### 3. Competition Rewards

The Treasury will fund various competitions to drive innovation, engagement, and skill development within the Arena DAO ecosystem.

#### 4. Bounties

A portion of the Treasury will be allocated to bounties for specific tasks or projects that contribute to the growth and enhancement of the Arena DAO ecosystem:

* Development bounties for new features or integrations
* Bug bounties to enhance platform security and stability
* Content creation bounties to boost community engagement and education
* Research bounties for advancing the DAO's technical or economic models

### Future Considerations

As the Arena DAO evolves, additional use cases for the Treasury may be proposed and implemented through governance decisions. The flexibility of this treasury allows the DAO to adapt to new opportunities and challenges in the dynamic DeFi landscape.


# Arena DAO Gladiators (ADG)

Arena DAO Gladiators (ADG) is Arena DAO’s own esports team and NFT-based subDAO, designed to serve as the DAO’s open-inclusion mechanism. Arena DAO Gladiators combines the excitement of competitive gaming with decentralized governance, giving members a unique opportunity to shape both the team’s direction and the broader Arena DAO ecosystem.

<figure><img src="https://2366303951-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FnFQSf6rgTtZWNh7a9tcA%2Fuploads%2F6VDkSuCuYiBeygfSL7iP%2F153.webp?alt=media&amp;token=c4070936-902f-4836-948a-e5be106fe0d6" alt=""><figcaption></figcaption></figure>

### Key Features

* **NFT-Based Membership and Governance**: Each Arena DAO Gladiator NFT represents membership in ADG, providing holders with voting rights within the subDAO and the power to influence ADG’s decisions and operations.
* **Semi-Autonomous SubDAO Structure**: Arena DAO Gladiators operates with a level of independence within Arena DAO, managing its own initiatives and strategic goals while still aligning with the DAO’s overarching mission.
* **Collective Influence in Arena DAO**: ADG has a dedicated voice within Arena DAO’s governance, giving NFT holders a meaningful way to contribute to major decisions affecting the entire community.
* **Exclusive Gladiator Designs**: Each NFT in the collection features a unique AI-generated gladiator, with diverse designs and attributes that enhance both collectible value and member identity.

### Governance in Arena DAO Gladiators

The Arena DAO Gladiators subDAO empowers NFT holders with significant influence, allowing them to:

* **Propose and Vote on ADG-Specific Initiatives**: Shape the ADG team’s operations, competitive involvement, and future growth strategies.
* **Allocate Resources for ADG Activities**: Direct funding, events, and other resources for the benefit of the Gladiator community.
* **Represent ADG Interests in Arena DAO**: Voice ADG’s unique perspectives and needs in the main Arena DAO governance discussions.

### Voting Power and Influence

* **Within ADG**: Voting power in the subDAO is impacted by factors such as NFT rarity and number of NFTs held.
* **Within Arena DAO**: The Gladiators subDAO has collective voting rights in Arena DAO, amplifying the influence of NFT holders across the entire ecosystem.

### Additional Benefits of Arena DAO Gladiator NFT Ownership

Owning an Arena DAO Gladiator NFT unlocks exclusive perks, including:

* **Access to Gladiator-Only Competitions**: Participate in esports events and competitions exclusively for ADG members.
* **Special Roles in Arena DAO**: Engage in specialized roles or responsibilities within the DAO, enhancing your involvement and influence.
* **Future Rewards**: Potential airdrops, rewards, or other benefits as part of ongoing community engagement and ADG growth.

### How to Acquire an Arena DAO Gladiator NFT

Arena DAO Gladiators will launch on the **Superbolt platform** with an exclusive total supply of **300 NFTs**. Details about the minting process and distribution method will be shared in upcoming announcements. Follow our official channels to stay updated on the Superbolt launch and secure your opportunity to join the ADG community.

{% embed url="<https://superbolt.wtf/>" %}


# Arena Fortnite Creators

The **Arena Fortnite Creators** subDAO is tasked with creating competitive maps for Fortnite and actively participating in Fortnite’s creator economy. This team is empowered to innovate within Fortnite, bringing value to both the Arena DAO and its gaming community.

### Mission

The primary mission of the Arena Fortnite Creators subDAO is to:

* Develop competitive Fortnite maps.
* Provide tools and experiences for players preparing for tournaments.
* Contribute to Fortnite's creator economy, reinforcing the Arena DAO's presence and engagement within the gaming community.

By creating high-quality maps and engaging game modes, the subDAO supports Arena DAO's larger mission of empowering communities to compete, govern, and win in the competitive gaming space.

### Goals and Vision

* **Monetize Competitive Maps**: Earn revenue through Fortnite's creator economy.
* **Create Practice Maps for Competitive Preparation**: Design maps that help players improve for high-stakes tournaments.
* **Build an Open-source Ecosystem**: Develop and share tools, concepts, and algorithms (like the storm surge algorithm) to benefit the Fortnite community and the Arena DAO.

### Revenue Distribution

To ensure fair compensation and alignment with Arena DAO’s goals, revenue from the Fortnite Creator subDAO is distributed as follows:

* **70%** goes directly to the Arena Fortnite Creators subDAO.
* **30%** is allocated to Arena DAO’s treasury.

This split incentivizes creators and contributors to maximize engagement and quality within their maps, while also supporting the overall DAO.


