The Effect DAO: The Guardians of the Galaxy Pool
Chapter #3
I want to begin this blog with a quick history lesson about Effect.AI. In 2017, we published The Effect Network Whitepaper. If you refer to the paper you’ll find a section titled The Galaxy Pool, which gives a technical overview of a liquidity pool of digital assets including, of course, EFX. This liquidity pool was intended to be an internal system of financial “Defi” services for workers and contributors to The Effect Network. Now, remember, one of the core designs of the network is to provide access to consistent and fairly paid work to anyone across the globe. It is important to have financial services tied to a liquidity pool of assets, especially for those who count on our network to provide themselves a living. At the time our Whitepaper was published, “DeFi” wasn’t even a whisper in the crypto sphere. Fast-forward to today and you can clearly see that Jesse Eisses, the creator of the Galaxy Pool system, is a true visionary. Back then the “crypto kids” were playing Doge Poker and Eth Roll while Jesse created “Defi”. Don’t get me wrong, Doge Poker was awesome but it’s no Galaxy Pool.
If you think “Defi” is hot and the gains are substantial with Yield Farming and Liquidity Mining, imagine when you add “Defi” to a project with 1000s of active users, multibillion-dollar clients, and a true long-term future. The Galaxy Pool just might be the greatest “Defi” project and it’s only one part that makes up the value of The Effect Network. Enough with Captain Shill!
So there’s the quick Effect.AI history lesson. I just wanted to quickly highlight what the Galaxy Pool is and the various places it can and will be present in the coming Effect DAO. Decentralized Finance is only one small part of what is, The Effect Network.
Now, on to the core of this blog. You may want to read until the end for some exciting sneak peeks of Chapter #5 where we talk about the new Effect Staking Protocol 2.0 and some numbers.
So, who and what is a Guardian of the Galaxy Pool?
The definition of a guardian in the case we are talking about today is: Someone or something who watches and protects something.
So lets breakdown the definition into 3 clear parts:
Someone or Something / Watches and Protects / Something
Someone or Something: This refers to a member of the Effect DAO, a Guardian. This may be an individual, a group of individuals, or even in the case of “something” could be an Artificial Intelligent agent. As long as the entity acts by the official guidelines and rules of the Effect DAO Constitution there will be no discrimination or classification of what a Guardian is unless changed in a future Phase. We highly suspect that the core of the DAO will be made up of individual people for the first few Phases of the DAO… But we might see AI enter the arena before too long.
Watches and Protects: This refers to the main responsibilities of a Guardian. Within the Effect DAO a Guardian has to provide 3 very important duties. Create liquidity, vote on proposals, and participate in governance. Creating liquidity is vital to a healthy ecosystem of rewards, incentives, and services. If you look at the similarities of Uniswap and the Galaxy Pool you will see several correlations in how they function, the technology that makes them work, and the reward structure. Effect.AI goes beyond these simple Defi functions and also rewards members by participating in the expansion and adoption of the network. This of which brings us to Voting and Proposals. In the next chapter, we will highlight the Effect Proposal System. This system allows anyone inside or outside the network to submit a worker proposal for The Effect Network and add an EFX incentive to the proposal. Guardians of the DAO can choose to vote for, against, or abstain on proposals. The more voting a Guardian does the more rewards they receive. And finally, we have Governance. To achieve the highest level of reward as a Guardian in the DAO, you must vote on Effect DAO network changes. With each phase, we go to the Guardians for suggestions, proposals, feedback and collectively vote on the new parameters and technical upgrades we, the DAO, want to see in the next Phase.
Something: The something in the definition of a Guardian is of course The Effect Network. The Effect Network is a decentralized ecosystem for global members to participate in an open and democratic system to build, monetize, and power the AI world of tomorrow. For a full overview of the 3 Phases that make up The Effect Network, please refer to the Whitepaper here.
So that’s a little taste of what to look forward to in regard to what an Effect DAO Guardian is and some responsibilities and benefits a Guardian has. In the next 2 chapters, we get into the fine details of the numbers, technical overviews, and reward structures with Chapter #4: Effect Voting System and Chapter #5 Effect Staking Protocol 2.0.
These two chapters will be released next week. The opening day of the Effect DAO is fast approaching. Are you ready?
There has been much speculation about the requirements and rules of becoming a member of the DAO. When I mentioned the Effect DAO for the first time several months ago I suggested a possible 100k EFX + 10K NFX as a minimum entry to becoming a Guardian of the DAO. I can now safely say 100k EFX + 10k NFX is a number that will give you access to the DAO but there’s a little more to it than that. Stake AGE will also play a major role where it will increase the power of your EFX enabling you to gain levels in the DAO. So do not unstake as you get to carry over your current Stake AGE into the DAO. EFX+ Stake AGE + NFX = all sorts of amazing things. I want to give all the details right now but this is completely Laurens’ “show and tell” and it will be totally covered in Chapter #5. We are certain this method will provide a fair and level DAO environment for our long term vision.
If you are interested in buying EFX please go to KUCOIN cryptocurrency exchange.
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