The dxDAO Awakens: How to Participate and Become a dxDAO Stakeholder

Find out how dxDAO is changing the way organizations operate and learn how you can be a part of this revolutionary event!

Participate in the dxDAO

Revolutionizing The Way Organizations Govern

The crypto market is rising. Facebook introduced LibraCoin. It’s becoming apparent to the average individual that crypto is here to stay. Facebook’s, shall we say, data privacy ineptitudes have resulted in many questioning what type of power Facebook’s Libra cryptocurrency would maintain. Facebook has set up a separate organization to govern the currency –that will seek challenge state-sovereign currencies– although the organization is limited the amount of governing partners to 100 predominantly big-name corporations. Which governance style will the company envoke?

This burning question on everyone’s mind. Will Libra bring the top-down organization style to desecrate the true essence of the principals of blockchains: decentralization, incentivization, and democratization? Most likely.

However, there’s another way to govern an organization based on logic and computer code. It’s often referred to as a DAO or decentralized autonomous organization.

What is the dxDAO?

The dxDAO aims to become a community-governed DAO with total control over the DutchX trading protocol. The DutchX is a decentralized trading protocol that allows anyone to add any trading token pair.

The dxDAO will also be 100% community-owned. There will be no pre-allocation of voting rights. The dxDAO will also utilize DAOstack’s governance infrastructure and the holographic consensus governance framework, which is accessible through the Alchemy user interface.

The dxDAO is the first fully decentralized trading protocol, a next-generation DAO for community governance of software protocols. Most importantly, anyone can participate, and anyone can earn voting power.

Watch how to participate and become a dxDAO stakeholder.

Since the dxDAO Launch

• USD 22.5 Million equivalent has been locked to earn voting power in the dxDAO
• Over 300 unique addresses have participated thus far to earn voting power
• DeFi projects such as Loopring (locked USD 5M of their $LRC token) have already staked significantly for voting power
• There has been an average ~500% trading volume increase on the DutchX trading protocol since May 29th, 2019.

Why is dxDAO Important?

The dxDAO revolutionizes the traditional governance structure by giving users of a protocol the opportunity to govern it. This distributes power from the central creator to the network’s edges. Corporations, governments, and other organizations consistently consolidate power into the hands of a few, create inefficient hierarchies, and limit those who are able to voice their opinions. The dxDAO aims to be a radical experiment in how organizations operate and how we as humanity cooperate with one another.

How Does Voting Work?

Participants are awarded voting power based on locking ETH or ERC20 tokens, trading on the DutchX protocol, or bidding GEN (DAOstack tokens). Tokens eligible for locking are those already listed on the DutchX protocol such as $DAI, $KNC (Kyber), $LRC (Loopring), $MKR (Maker), $GNO and many others. Participants are awarded “reputation” based proportionally to how much everyone else locks, registers, or bids.

The dxDAO is an ambitious experiment, and one of the largest blockchain-based coordination endeavors to date since “The DAO.” The DAO was the first experiment at creating a decentralized autonomous organization. Unfortunately, the DAO was hacked which eventually resulted in a necessary fork to return users lost funds.

What’s in Store for the Future of dxDAO?

Of course, dxDAO is designed to be completely capable of growing beyond the DutchX DEX, possessing the ability to do anything that is currently possible on Ethereum. The dxDAO will initially control the governance of the DutchX, however, it is a starting point, not an endpoint. Gnosis, DAOstack, and all the participants envision that dxDAO will fill a crucial gap in web 3.0 governance for the utility token ecosystem. Gnosis will step back entirely from the dxDAO by the Governance Phase (July 14th) giving control to the community. Its lifelong trajectory will ultimately be decided by what community stakeholders deem to be the most important pursuits.

How Can You Participate in dxDAO?

It’s up to individuals of the Ethereum community to participate in an experiment like the dxDAO in order to change the system.

You can earn voting power until June 28th, 12noon GMT here. 50% of the voting power will be allotted to users of the protocol the dxDAO will govern. All you need is a bit of skin in the game, and a whole lot of hope that together, we will be able to achieve full decentralization.

After the vote staking period ends, initial voting power will be assigned, and the dxDAO Governance Phase using DAOstack’s Holographic Consensus protocol will go live.

Learn more by reading the Gnosis blog post.

Disclaimer. The views, information, and opinions expressed are solely those by the author above do not necessarily represent the views of Consensys AG. They are meant for informational purposes only, are not intended to serve as a recommendation or investment advice to buy or sell any securities, cryptoassets, or other financial products.