DeFi. EYWA DAO

We've said many times that EYWA is committed to decentralization. And the most natural way to decentralize project management is DAO! This is the phenomenon we will talk about in this article.

Let's start with the definition: DAO is a decentralized autonomous organization. In this format of project management the users make decisions collectively, voting for various proposals. Voting in DAO is done using tokens.

The token is the most important part of the decentralized management system, a kind of management tool. EYWA token has two main uses: the first is Proof-of-stake (PoS), and the second one is DAO. They are inextricably linked. Let's break it down!

Proof-of-stake
The user sends tokens to staking by selecting the EYWA Oracle Network validator, where these tokens take part in the consensus and protection of the network and receive a reward in EYWA tokens for doing so. The reward amount depends on the total number of locked tokens in staking, the size of the stake, and the current payout policy in PoS, paid out of the project's treasury. So how are PoS and DAO connected?

Every user who sends funds to staking will automatically receive votes - this is the xEYWA governance token. The number of votes depends on how long the token is locked in staking. For the minimum locking period (2 weeks), the user receives fewer votes; for the maximum period (4 years), the ratio of votes to tokens is 1 to 1. The user will be able to use these votes during voting: delegate them in favor of a participant or a proposal. So, the more votes the participant has - the greater his role in decision-making in DAO.

DAO
DAO determines the monetary policy - it manages the token issuance process. Tokenomics has 50% of the issuance in DAO treasuries - these are the tokens that are managed by the community. This fund provides PoS rewards, rewards for liquidity providers, grants, etc. All of these payments are made in agreement with the community. We want to prepare this system for use and only then launch the token, the TGE event and trading. Otherwise the token will just become a speculative tool.

In fact, it is the DAO that determines what the yield will be on pools or on staking, what the yield will be on the EYWA pool to the dollar, and how much payouts liquidity providers will receive. DAO implies a community of maximum interest: for some, the primary interest will be in profit; for others, in fairness. A token is the only way to influence decisions and achieve your goals.

Thank you for your attention,

EYWA Team