The Breadchain token (BREAD) value capturing implementations are dependent on the Bread.sol contract, which serves as the foundational element of the token model. This contract implements the mint-and-burn mechanism. The token’s market value stability that arises from this mechanism is critical for the "Value transfer from Representation" VCM, which combines Representation and Value Transfer OoVs. Additionally, the Bread.sol contract manages voting power delegation for BREAD holders, forming a key component of the Generalized Governance VCM. This governance system is further supported by ButteredBread.sol, which enables liquidity providers to mint ButteredBread tokens and participate in governance, and YieldDistributor.sol, which facilitates voting and yield distribution to member projects. The Bread.sol contract underpins both VCMs , and accordingly, the implementation of the Bread.sol contract is described first, followed by the governance system involving ButteredBread.sol and YieldDistributor.sol.

1. VALUE TRANSFER FROM REPRESENTATION IMPLEMENTATION

This section describes the technical implementation of the Value transfer from Representation mechanism for BREAD, a system that establishes par value to xDAI and enables its use as a medium of exchange within the Breadchain Marketplace. The Bread.sol contract ensures BREAD’s stability through minting and burning processes, while its utility as a transactional currency is facilitated by a centralized directory and standard ERC20 transfers. Crowdstaking (Mint-and-Burn) The Bread.sol contract implements BREAD as an ERC20 token on the Gnosis Chain, fully collateralized by xDAI via sDAI (sexy/SavingsDAI), a yield-bearing derivative. Users can mint BREAD by sending xDAI, which is wrapped into wxDai, deposited into sDAI, and minted as BREAD to a specified receiver at a 1:1 ratio, with voting power auto-delegated if not already set. For burning, users specify an amount and receiver, triggering the contract to burn the BREAD, withdraw the equivalent sDAI, redeem it for wxDai, unwrap it to xDAI, and transfer the xDAI to the receiver. Marketplace The implementation described previously enables BREAD to serve as a reliable medium of exchange via the Breadchain Marketplace, where users spend BREAD to purchase goods or services from supporters. The transaction process is off-chain (no smart contracts) from Breadchain’s perspective, as BREAD tokens are used through individual supporter projects rather than a centralized on-chain marketplace. Users browse the Notion Marketplace to identify offerings, then proceed to use their BREAD via an ERC20-compatible wallet. The manner in which supporters accept BREAD varies: Giveth enables donations in BREAD, TBS DAO offers podcast subscriptions through NFT purchases paid in BREAD, and Crypto Leftist Discord grants access to token-gated channels for BREAD holders.

Key Contracts:

• BreadContract: Core logic for BREAD. Link
• wxDai: Wrapped xDAI. Link
• sexy(Savings)Dai (sDAI): Yield-bearing xDAI. Link

2. THE GENERALIZED GOVERNANCE IMPLEMENTATION

The Generalized Governance Implementation for the Breadchain token (BREAD) leverages three core smart contracts, Bread.sol, ButteredBread.sol, and YieldDistributor.sol, to manage token operations, incentivize liquidity provision, and execute the governance and yield distribution processes.

Below outlines the governance process for BREAD, focusing on decentralized yield distribution through three key steps:

1. Liquidity Provision and ButteredBread Minting Users provide liquidity to sanctioned pools (e.g., CurvePool BREAD/xDAI), receive LP tokens, and deposit them into ButteredBread.sol to mint ButteredBread tokens. These tokens grant voting power, synced with BREAD delegation.
2. Voting on Yield Distribution Users vote via YieldDistributor.sol’s castVote function, allocating points to projects. Voting power, calculated by getCurrentVotingPower, is the sum of BREAD and ButteredBread power over a period (from previousCycleStartingBlock to lastClaimedBlockNumber). Votes must exceed minRequiredVotingPower, with points per project capped at maxPoints and total points non-zero. Weighted votes determine each project’s yield share. Voting Power Calculation:

3. Yield Distribution Yield is distributed periodically, with a minimum interval of cycleLength blocks. The distributeYield function in YieldDistributor.sol claims yield from Bread.sol, calculates total yield, splits it into fixed and voted portions, and transfers amounts to projects. The fixed portion divides a share equally, while the voted portion is allocated by vote proportion. Post-distribution, the project list updates, and voting tallies reset. Yield Distribution Calculation: The yield distribution combines a fixed allocation with a vote-based allocation:

• Fixed Split:

• Voted Split:

• Total Yield per Project:

Key Contracts:

• BreadContract: Core logic for the BREAD token. Link
• ButteredBreadContract: Core logic for Buttered BREAD. Link
• YieldDistributor: Core logic for Yield Distribution. Link