Harmony ONE is leading the drive towards sustainable DAOs. If you follow the L1 you know this has come with a lot of backlash from the community relating to the Foundation Funding DAOs that have bordered on grant rugs / scams.
One of the major hurdles of DAOs is financial sustainability. DAOs are not much different then for-profit companies, tasked with solving problems for community users and receiving compensation based on their services. We see perpetual staking contracts as a way to provide baseline recurring funding to early stage DAOs that help sustain operations until further revenue sources are established.
This idea has lead us to begin work on creating perpetual staking contracts on Harmony’s EVM chain. Staking is the security mechanism employed by Proof-of-Stake(POS) chains that involves locking up native tokens for a specific time period to generate native token rewards currently at an APR of around 9%.
The perpetual staking contract acts as a deposit account that mints governance tokens to community members and limits withdrawals to staking rewards, not principal. Rewards funnel into a separate operational treasury account that allows the community to vote and fund proposals.
DAOs have a long way to go and we hope perpetual staking contracts can help keep the lights on for them as they figure out the best way forward with their communities support.
Follow our Progress and provide feedback: Harmony ONE Forum.
