Governance in market-leading organizational projects; What is the decision-making process in these DAOs?
Decentralized Independent Organizations (DAOs) are rapidly becoming the default standard for projects that seek to build their own applications and services in China’s blockchain industry. This concept creates new opportunities for users of blockchain applications to participate and vote on changes related to development or otherwise.
Given the nature of this governance model and its speed of adoption, in this article, we will thoroughly examine the top DAOs in terms of market value and explain how the members of these DAOs reach consensus and make their own decisions.
Although these DAOs are mostly Defi protocols, it should be noted that there are many DAOs that pursue different goals; From investment and fundraising DAOs such as MetaCartel to financing and support DAOs such as Gitcoin and social DAOs such as FWB and media DAOs such as Bankless.
As part of its plan to launch a competitive and self-reliant decentralized exchange, UNIQUAP Development Team launched its governance token called UNI in September 2020. This action has made possible a new supervisory structure and has officially given the Uniswap community the opportunity to implement and develop the project on a daily basis. Anyone with a UNI token can vote positively or negatively on development proposals that could change the structure or operation of the Uni-Swap protocol.
Prior to the introduction of this token, only the development team was responsible for determining the development decisions of the UniSwap project. Now that the monitoring token has been released to the community, such decisions are being made by the entire Unicup network. This has been achieved thanks to the release of the UNI token.
To that end, the development team has distributed one billion UNI tokens among the platform’s key participants, including the development team, members of the UNSWAP community, investors, and consultants. The percentage of total inventory distributed to each group is as follows:
· 60% or 600 million tokens to members of the Uniswap community.
· 21,266 percent or 212,660,000 tokens to development team members and future employees with a 4-year release plan
· 18,044% or 180,440,000 tokens to investors with a 4-year liberalization program
· 0.69% or 6,900,000 tokens to consultants with a 4-year release plan
Holders of this token control the following resources:
· Uniswap monitoring
· Ionian Society Treasury
· Change protocol fee
· Domain Name Uniswap.eth ENS
· Default list of Unicap tokens
· SOCKS liquidity tokens
How can ion token holders submit their proposal?
The important point is that all ion token holders can submit their proposal to change or introduce a new feature. These proposals are approved or rejected by members of the community. Proposals must go through several different layers before they can be implemented. The first phase is the temperature survey, during which the bidder must introduce an idea to the community and collect enough positive votes to proceed to the next step. In the next step, the proposal must collect at least 25,000 positive ion tokens to be eligible for the next steps.
The second phase is the review of consensus. At this stage, the bidder must prepare a formal announcement outlining the main changes and benefits of the proposal. To pass this stage, the proposal must collect at least 50,000 positive ion tokens.
The last phase is the regulatory proposal. In this step, the proposal provider records the audited code for the final step. As in the previous two phases, at this stage, there is a minimum amount of positive votes to approve the proposal. Each proposal must collect at least 40 million ion tokens in order to be eligible for implementation.
However, before completing all these steps, proposals can be submitted for consideration by the community, provided that the bidder must have at least 2,500,000 ion tokens. Initially, this amount was equal to 10 million ion tokens.
The law was later reviewed through a regulatory mechanism, and the requirements for submitting a proposal were reduced to 2,500,000 tokens.
It is noteworthy that ion token holders can vote for themselves or leave their vote to other users who believe they will make the best decisions for the benefit of the Unicaps ecosystem.
we will talk furthermore about other DAO’s systems on textoken.io
