Launch the community DAO governance platform — New year’s priority issues of ADAMoracle
With the start of the new year, ADAMoracle will embark on a new journey. In 2022, the first major issue of the ADAMoracle is to fully launch the community DAO governance platform.
What is DAO？
Currently, the market definition of DAO (Decentralized Autonomous Organization) is still evolving. According to the current circumstance, DAO should be an organization that supports blockchain, smart contracts and digital assets to operate on the Internet with the ability to expand globally since it was born.
In other words, DAO is a brand-new way of organizational collaboration, which enable organizations to realize self-operation, self-governance, and self-evolution in accordance with pre-set rules by using intelligent management methods and token economic incentives, rather than being controlled by centralized institutions.
Specifically, DAO has capabilities of both decision-making and execution. It can perceive members’ collective wishes, making decisions gently and smoothly. Also, it will encourage members to cooperate in execution with minimal trust costs through methods such as decision tokenization to achieve the collective goal. Meanwhile, all economic activities and rules of DAO are recorded on the blockchain. It doesn’t need the participation of a third party, which makes DAO highly independent.
Based on these characteristics, smart contracts are the necessary glue for managing members of the DAO community. Smart contracts define anti-tampering rules to help organizations operate systematically. Due to these features, DAO is somewhat different from today’s enterprises and companies, which rely on statutory law and usually use written documents to define the scale and boundaries of the organization.
Why does ADAMoracle build a DAO governance platform?
Participating in the DAO organization indicates that the open-source technology will be managed by its users or token holders in the future, and they will be committed to the continuous development of the underlying technology based on smart contracts. These governance tokens restrict developers and can more fully protect the rights and interests of community users and investors. As a node-centric project, ADAMoracle will fully protect the rights and interests of nodes and community users, so that every user can participate in the governance of the project and have the right of voting and decision-making.
DAO may have operational advantages in several aspects, compared to the existing legal organization structure, at least. Participants only need a few clicks on their mobile phones or blockchain wallets to contribute digital assets to the DAO and join in as members. Thanks to blockchain technology, asset transformation only takes a few seconds (or even a few milliseconds). Digital assets can be transferred smoothly in the blockchain network, without the need for layer-by-layer review by financial institutions, but to add blocks to the underlying data through validators.
Due to these features, DAO enables different groups of people to pool capital through the Internet, and its financing capabilities are quite outstanding. Unlike financing a single project, DAO is used to pool funds and engage in venture investment or other forms of investment activities.
DAO also deploys voting schemes through an algorithm system to simplify group decision-making. DAO participants can sign on-chain transactions and record on-chain votes, and the voting weight is evaluated by the proportion of capital, ownership or governance tokens. Through voting on the chain, DAO members can cryptographically verify the results of member votes. The DAO will open public audits to members of the organization (and possibly to the public) to ensure compliance with decision-making procedures and reduce potential misjudgment of votes. What’s more, the smart contract also provides proxy voting, which reduces the cost of traditional proxy voting and reduces the cost of soliciting member feedback and opinions.
What impact will the DAO governance platform have on ADAMoracle?
The influence of DAO is extensive. Firstly, DAO governance will make the decision-making process of the ADAMoracle more transparent, safe and autonomous, and it is expected to respond more quickly than the existing legal entities. Through voting and recording on the chain, the participatory DAO achieves a highly transparent voting procedure, which can avoid controversial decisions, fraudulent conduct, and reduce low-level errors at the same time.
Secondly, the voting mechanism of participatory DAO is simplified with low cost due to its digital nature. Voting no longer requires paper mail or secure electronic proxy services. Therefore, DAO-based voting is usually conducted continuously, not just within a scheduled time. Compared with centralized managers, members participating in ADAMoracle DAO governance can play an important role in organizational management economically.
Thirdly, participating in DAO to incorporate information and feedback from many stakeholders. In fact, technicians hope that more people can participate in DAO — related decisions, so as to eliminate the need for one or more central managers. If this method is effective, it may question the basic principles of corporate governance — that is, assign management power to important positions such as the board of directors.
Fourthly, smart contracts also offer organizations new methods for internal asset management. Many centralized organizations are still working hard to implement appropriate safeguards to prevent misappropriation or abuse of funds. Companies usually reduce risks in a way of division of responsibilities to ensure that no one can unilaterally transfer or use assets. It seems that DAO can reduce the possibility of jobbery and opportunism.
What kind of DAO does ADAMoracle want to create?
1. Have an effective incentive mechanism
The foundation of DAO is to establish a complete set of effective incentive mechanisms, which can motivate members to participate in project governance, and can achieve fair, transparent and intelligent execution. Therefore, it is very important to understand how members’ contributions are rewarded in DAO. Generally, allocating governance rights and awarding contributors or profit shares can motivate members to contribute to the DAO and actively participate in governance, which in turn makes the organization more efficient.
2. High participation rate of community members
The factor driving the growth of DAO’s value is not only the contribution made by each member to DAO, but also the active participation of more members in governance, which enables the organization to adjust and improve continuously. Smart contracts are manually edited agreements, some of which may need to be improved or upgraded as the project develops. Thus, active participation of community members to propose and formulate valuable development guidelines jointly is required for project development.
3. Be able to achieve project delivery continuously
If DAO implements a good incentive mechanism and members make contributions to it actively, then DAO should continue to deliver its projects and make proposals. A DAO that regularly promotes project development usually means a good performance in terms of collective participation, execution ability, and long-term value appreciation. This is also the reason why the ADAMoracle is launched on the DAO governance platform.
So far, ADAMoracle has been launched officially, and high-quality nodes from all over the world are joining in ADAMoracle network continuously. A total number of tens of thousands of community members make the project have the basic conditions to start DAO governance. ADAMoracle is building a community DAO governance platform gradually. Meanwhile, community governance tokens will be issued to give community members more rights.