Enter the Event Horizon
Addressing the Problem with ‘Decentralized’ Governance Today
Decentralized Autonomous Organizations aren’t decentralized. Go to any DAO’s governance forum and no one shows up. Of those who do show up to vote, often 99.95% of the voting power is controlled by ~5 wallets. This is unacceptable. If crypto is to ever live up to its own ideals of being truly decentralized, something has to change. Thankfully, the voting authority of these controlling wallets only amounts to ~2% of all circulating tokens. That being said, how does Event Horizon solve this coordination problem?
When Event Horizon mobilizes just 0.5% of DAO communities, it will immediately become one of the largest stakeholders.
What is Event Horizon?
Event Horizon is many things. We are a yield farm. We are a community-driven voting block. We’re the second layer of governance. But we’re also getting ahead of ourselves, let’s step back for a moment.
In what sense are DAOs not decentralized? The most important metric of DAO decentralization is token participation. How does Event Horizon solve this? First, we attract DAO token deposits into our treasury by offering yield through various strategies. Yield-farmers earn Event Horizon’s native HVAX token. The yield earned on staked deposits is then accumulated into the Event Horizon treasury. This ensures that the treasury can grow a healthy reserve of DAO tokens which can then be mobilized on various external DAO (ExDAO) governance votes as a single unified block, a block whose voter authority can be rented out for further yield for HVAX holders. Event Horizon attracts deposits via yield paid out in the form of roughly an ETF of the broader DAO space which is used to vote on external DAO governance votes. In this regard, Event Horizon takes today’s general participation issue and creates a positive dynamic by which it offers those uninterested in governance a means to passively accrue yield while allowing for those vested in truly governing to have a magnified voice.
What Makes HVAX Valuable?
HVAX tokens derive their value from three sources. First, internal governance value. This is the value backing almost every DAO token currently on the $20b market. No revenue share. No redemptions. Just governance. HVAX too has internal governance value. But there’s more.
HVAX also serves as a collateral redemption token. All the DAO tokens that Event Horizon has accrued in the treasury (not to be confused with users’ staked deposits) are available to be redeemed proportionally in exchange for burning HVAX. This means that the more diverse the treasury becomes, the more HVAX serves as a basket of goods for the broader DAO ecosystem, a long ETF of the space.
Finally, and most importantly, HVAX serves as the governance token for all DAOs across the ecosystem. ExDAO proposals are copied over to Event Horizon’s governance proposal for the HVAX community to vote on. However our community votes, the entire treasury votes. That’s 100% voter participation as long as only a single person votes.
This gives us HVAX’s 3 Pillars of Value:
- Internal Governance Value: a single proportional share vote in all governance proposals as they pertain to the dictation and direction of Event Horizon itself. Notably, this is typically the only value held by most governance assets on the market today.
- Compounding Collateral Value: a single proportional share of ownership to treasury-held assets
- External Governance Value: a single proportional vote in the governance proposals of all other DAOs (ExDAOs) which the Event Horizon Treasury maintains. This is a unique value proposition of the Event Horizon — the ability to govern multiple DAO organizations through a single voting vehicle.
The Second Layer of Governance
As it stands today, most DAOs have a core product (DEX, stable swap, money market, etc) with a DAO structure as an afterthought. There’s no reason the brilliant minds working on novel applications of blockchain technology have to split their time and attention into building out redundant DAO infrastructure. Event Horizon is the solution.
Event Horizon serves as the one-stop-shop for all things governance related. Talk with the other governance nerds in our Discord, see all active ExDAO proposals on our unified governance portal, easily customize voting parameters (first past the post, ranked choice, quadratic voting), require a minimum number of tokens or wallet votes, etc. DAOs can therefore offload much of their governance infrastructure to Event Horizon, all the while increasing participation.
The Event Horizon is the world’s first DDAO (DAO of DAOs) — uniting the long-tail end of non-participatory governance token holders under a single governing body, as a unified and ever-growing voter block to enable multiplied governance authority across all DAOs within the greater ecosystem. The core mandate of Event Horizon as a protocol is to generate surplus growth in ExDAO terms. That being said, Event Horizon, like a force of nature, holds no innate agenda of its own. Using this authority to sculpt the future of the space is up to you, the community. We believe strongly in the importance of the enfranchisement of the broader retail audience as a core means to allow for the shaping, strengthening, and growth of the defi space in the years to come.
With this, you, for the first time have a platform to establish a meaningful voice in the most important infrastructures in the space, not because of your capital means, but because of your willingness to affect change and make a better ecosystem for all. This opportunity will be furthered through future developments in Event Horizons delegate representative system (details coming soon). Despite current disillusionment, the opportunity for you and the broader community to have this meaningful voice is already there, it is simply a matter of unifying and mobilizing the 98% of dormant authority.
Event Horizon is more than any one individual and more than its team. And, you, simply through a desire to participate can rise to become an important and impactful voice within Event Horizon and the growing sphere of influence it garners across DeFi. This is just the beginning.
