Back Understanding district0x

The District Registry


The District Registry provides the district0x Network with a way of decentralizing the application process for new districts wishing to enter the network. By utilizing a Token Curated Registry design pattern, DNT holders can curate a whitelist of specific districts allowed access to the full range of district0x Network services.

To put it simply, the District Registry creates a fair democratic system for deciding who goes and who stays within the district0x Network.

So What Is The District Registry?

Once built, a user interface will allow any DNT holder to submit new district proposals to the District Registry. Other users can challenge those submissions, or vote in open challenges. Based on the outcome of a vote, the district may be accepted or rejected. Challengers and voters on the winning side are rewarded with a portion of the DNT used to initiate/challenge the proposal.

By creating an incentive structure with these rewards, the network can perpetually police itself, preventing any malicious districts from entering the network and booting out any districts which become obsolete after creation. Everyone is incentivized to see good districts included on the network, and as such, challengers must always be careful to challenge districts with real opposition.

The end result is a system that efficiently deters bad actors from abuse while leveraging the strength of the masses to come to the hard decisions in the gray area in between. The district0x Network since its very beginning has sought to empower the average person by giving them a piece of the decision making process. The District Registry allows token holders to have control over just one more part of the district0x network.


How It Works

When a prospective district wishes to apply for access to the district0x Network, they will submit a DNT deposit with their application to the registry, initiating a challenge period during which any DNT holder can challenge submissions that they believe do not add value to the district0x Network or could put the network at risk. Token holders can challenge the application by depositing an equal amount of DNT to the registry, opening a voting period during which all DNT holders can vote for inclusion or denial of the specified district in the registry.

DNT holders are incentivized to participate in the challenge and voting process to ensure that districts added to the network bring value, thereby protecting and increasing the intrinsic value of their DNT. Participants on the winning side of a vote also stand to receive a portion of the deposit made by the losing party in the event.


Flow of Value Between Network Participants

The diagram below illustrates the way which DNT will flow between entities in the district0x ecosystem in the event of a district proposal submission and challenge, with the proposal ultimately being approved.



In the graphic above, we see the following steps occurring:

  1. A new district proposal is submitted to the registry with a 1000 DNT deposit affixed.
  2. A DNT holder believes the proposed district would detract from the value of the network at large so they submit a proposal challenge, depositing 1000 DNT to the registry to initiate a challenge vote to approve/deny the proposal.
  3. After a voting period, the district is approved for inclusion in the District Registry. Given such, the challenger’s deposit is forfeited, split between the submitter of the proposal and the voters.
  4. Having been approved, the district is added to the District Staking Interface, a new deposit pool is opened to allow DNT holders to stake tokens to the district, and a corresponding Aragon entity is deployed to the Aragon Network.
  5. The proposal submitter’s 1000 DNT deposit is transferred to the district’s deposit pool, assigning the initial voting shares in the Aragon entity to the submitter.

Once the district creation interface has been deployed, rendering the district proposal process obsolete, districts launched via the creation interface will need to undergo the same journey to be added to the district0x Network and granted access to a suite of ancillary services exclusive to members. You can replace ‘District Proposal’ with ‘Newly Created District’ in the flowchart above to visualize this change.





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