FHE-based Payroll & Contributor Management for DAOs

This project delivers a comprehensive payroll and contributor management system designed specifically for Decentralized Autonomous Organizations (DAOs). Powered by Zama's Fully Homomorphic Encryption (FHE) technology, it ensures that contributor salary levels, allocation plans, and performance data remain confidential while facilitating seamless payroll processing.

The Challenge of Confidentiality in DAOs

In the rapidly evolving landscape of DAOs, maintaining privacy while managing contributor compensation poses a significant challenge. Traditional payroll systems lack the essential privacy features required to protect sensitive information, potentially leading to trust issues within organizations. Contributors should feel secure knowing their performance data and compensation details are kept confidential, yet accessible for processing within the DAO. Without efficient privacy solutions, organizations face risks of data leaks and mistrust among contributors.

Harnessing FHE to Create a Secure Payroll System

By integrating Zama's Fully Homomorphic Encryption technology, this project allows DAOs to conduct payroll operations without revealing any private data. This is achieved through Zama's open-source libraries, such as Concrete and TFHE-rs, which enable secure, privacy-preserving computations on encrypted data. FHE allows calculations to be performed directly on encrypted values, ensuring that sensitive information remains shielded throughout the payroll process. This revolutionary approach protects both the organization and its contributors, helping to maintain a trusted and secure environment.

Key Features

• 🔒 FHE Encrypted Contributor Salary Standards: All salary data is stored and processed in an encrypted format to ensure maximum confidentiality.
• 📈 KPI-based Homomorphic Bonus Calculations: Bonuses are calculated based on Key Performance Indicators (KPIs) without needing to expose sensitive data.
• 💸 Streaming Payments and Token Vesting: Support for continuous payment streams and token allocations, enhancing contributor engagement and satisfaction.
• 📊 User-friendly Dashboard: An intuitive dashboard that simplifies contributor management and payroll distributions while maintaining robust security measures.

Technology Stack

• Zama FHE SDK: The cornerstone of our confidential computing capabilities.
• Node.js: The JavaScript runtime environment.
• Hardhat: Development environment for compiling, deploying, and testing smart contracts.
• Solidity: Programming language for writing smart contracts.

Directory Structure

Here's the file structure for the project:

Dao_Payroll_Fhe/
├── contracts/
│   └── Dao_Payroll.sol
├── scripts/
│   └── deploy.js
├── test/
│   └── payroll.test.js
├── package.json
└── README.md

Installation Guide

To set up the project on your local environment, please follow these steps:

1. Ensure you have Node.js installed on your machine. If not, please download and install it from the official Node.js website.
2. Navigate to the project directory using your terminal.
3. Run npm install to fetch the required dependencies, including Zama's FHE libraries.
4. Make sure to have Hardhat installed. If not, you can add it by running npm install --save-dev hardhat.

Important: Do not use git clone or any URLs for this project setup.

Build & Run Guide

After installing the project dependencies, you can compile, test, and run the project using the following commands in your terminal:

1. Compile the contracts:

   npx hardhat compile

2. Run tests:

   npx hardhat test

3. Deploy the contracts:

   npx hardhat run scripts/deploy.js

Example Code Snippet

Here’s a simple example of how to utilize the payroll system for calculating a contributor's bonus based on performance metrics:

pragma solidity ^0.8.0;

import "./Dao_Payroll.sol";

contract BonusDistributor {
    Dao_Payroll public payroll;

    constructor(address _payrollAddress) {
        payroll = Dao_Payroll(_payrollAddress);
    }

    function distributeBonus(address contributor, uint256 performanceScore) public {
        uint256 bonus = calculateBonus(performanceScore);
        payroll.payContributor(contributor, bonus);
    }

    function calculateBonus(uint256 score) private pure returns (uint256) {
        // Implement the logic for bonus calculation based on performance score
        return score * 100; // Example of bonus as 100 times performance score
    }
}

This code snippet exemplifies a basic structure for distributing bonuses based on contributor performance. It integrates with the payroll contract to maintain confidentiality and security throughout the calculations.

Acknowledgements

This project is Powered by Zama. We would like to extend our heartfelt gratitude to the Zama team for their pioneering work and open-source tools that enable the creation of confidential blockchain applications. Their continuous innovations in homomorphic encryption have been instrumental in bringing this project to life, ensuring the privacy and security of contributors' data while empowering DAOs in their operations.