What is a DAO? And why you should create one on the Internet Computer
DAOs with superpowers: embrace real decentralization with the Internet Computer Protocol
DAO stands for “Decentralized Autonomous Organization”. It’s a kind of organization that can be achieved through blockchain technology.
“A DAO, or “Decentralized Autonomous Organization,” is a community-led entity with no central authority. It is fully autonomous and transparent: smart contracts lay the foundational rules, execute the agreed-upon decisions, and at any point, proposals, voting, and even the very code itself can be publicly audited.”
Decentralized: there is no point of control or authority over the platform running the code. And no single point of control/authority over the code itself.
Autonomous: once it starts, there is no need of external intervention for running.
Self-sufficient: resources the organization needs and controls are directly controllable
Internet Computer DAO vs Ethereum DAO
Traditional DAOs are an organization in code, with tokenized voting and governance, that controls digital assets and currencies and the back-end smart contracts.
Ethereum DAOs in fact, cannot control the front-end of the dapp.
It can be a problem when an episode like Uniswap Ethereum DeFi exchange who once delisted half the tokens its smart contracts process because their developers must provide a cloud website (app.uniswap.org) so that their users can interact with their smart contracts. This made them transitively liable, so Uniswap jumped before being pushed and self-censored.
Moreover, Ethereum DAOs cannot interact with external systems and chains.
Since the dapps in the Internet Computer are 100% on-chain, both back-end and front-end, the DAO is able to control the application and interact with external systems and chains(thanks to Https & ECDSA).
Internet Computer is governed by a DAO itself: the Nervous Network System (or the NNS)
Internet Computer Protocol is being developed by DFINITY Foundation, but since its Genesis Launch, the protocol is governed by the biggest DAO in terms of total value locked: the Nervous Network System — NNS.
The Network Nervous System (NNS) is the open algorithmic system governing the Internet Computer blockchain. Its most notable innovations include its ability to upgrade the Internet Computer protocol and software running on node machines, onboard new node providers, add node machines into the blockchain network, and create new subnet blockchains to increase capacity. Anyone can participate in the NNS by staking ICP tokens into one or more neurons. Neurons can submit proposals and decide to adopt or reject them. The NNS implements liquid democracy: neurons can follow other neurons a delegate voting power.
Learn more and the stats in https://dashboard.internetcomputer.org/governance
The NNS is live at: https://nns.ic0.app/
Stake your ICP to test out all the functionalities of open decentralized governance.
The “Service Nervous System” SNS: the official DAO launchpad of the Internet Computer
A service nervous system (SNS) is an open tokenized governance system that can be used to decentralize the control of a dapp. SNSs will be provided as a service by the Internet Computer (IC) and work conceptually similar to the Network Nervous System (NNS). While the NNS is the open governance system that controls the full Internet Computer, each SNS will control one dapp.
SNS will be the official launchpad of the ICP and it will be controlled by the NNS: neuron holders will vote if a project is legit to be part of the SNS launchpad.
Once the project is accepted the decentralized token launch will be live in the NNS dashboard.
Once the tokens are distributed to the users who swap their ICP for the governance token of the DAO, the SNS DAO become independent from the NNS
NNS voting has no role in the process of approving changes in the SNS DAOs. The SNS is autonomous.
Want to learn more about the SNS functionalities and the front end? Check the link below:
How to be part of the SNS launchpad and create a token swap
If you’re interested in creating a DAO in the IC congrats, you’re early.
SNS will be released soon.(reviewed 22/07/2022) In case you’re interested in being part and proceeding with an application let’s get in contact so I can help you with news and when you will be able to.
Contents distributed by Learn.Block6.tech
👉 Discord — Live Talks
👉 Twitter — Latest articles
