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What is DAO, and how’s JaxCorp DAO different? (part 1)

by Maryna Trifonova, Head of Content at Jax.Network

The invention of blockchain technology started a whole new era in human development and opened a door for revolutionizing many aspects of our lives, including payments, real estate, and fundraising. One of the most prominent examples of the latter is a decentralized autonomous organization (DAO).

The rise of DAOs

Initially introduced in 2016, the DAO concept is currently disrupting the market, with new projects popping up here and there. Why have they gained popularity only now? Did people realize the brilliance of decentralized structures overnight?

Well, we don’t know the exact reasons for all this fuss around DAOs, but we do believe that it’s a good thing. People have been making the same mistakes over and over again since the beginning of life on Earth. And finally, blockchain and other technologies offer a way to eliminate human factors from the plate and let the system handle all the matters error-free. So, in simple terms, DAOs are pieces of blockchain code created with the purpose of governing an organization in an automated manner, allowing most management processes to be executed by a smart contract.

We can compare a DAO to a group of people who share the same idea and intend to work together in order to achieve the goal. Only in the case of a DAO we know that everything is transparent and auditable on-chain, but humans can let their emotions or lack of skill get in the way, putting the entire venture and everyone involved in it into jeopardy.

It’s worth mentioning that a DAO is ultimately governed by people, who vote to agree upon all the critical decisions. But the voting process, as any other piece of smart contract on a DAO, is automated and fully transparent, so the chance of cheating or conducting any other misdemeanor is really low.

JaxCorp DAO: to infinity and beyond

In this series of philosophical articles, we already mentioned the concept of universal basic income (UBI), which implies that all people should have the opportunity to do what they love without worrying over making ends meet. Instead of boring processes that sooner or later will be automated anyway, people should be able to focus on developing interesting skills, discovering new things, and creating a better future for us as a species.

JaxCorp DAO is responsible for governing a UBI system. The main provision of this system is that a portion of transaction fees collected for transacting in WJAX, or any other derivative soft-pegged to WJAX goes to a special UBI pool. And then, the collected funds are distributed equally among all people who have registered for a UBI program. The goals of a basic income system are to alleviate poverty and replace other need-based social programs that potentially require greater bureaucratic involvement.

Thanks to the decentralized nature of blockchain, the code is open-source and can be audited by anybody, putting an extra check on the system and eliminating the risk of funds misuse. So, if anyone would express a willingness to donate funds to the UBI program, they could check exactly where the money went.

It’s true that UBI payouts will be higher in the beginning, as there are not so many people eligible to UBI, and it will gradually decrease with more people joining the program. However, we argue that with mass adoption of our coins, transaction volumes should skyrocket, allowing for a decent amount of UBI to be paid to those in need.

If you believe in our technology and share our values, you know how to help us fulfill this mission. From using our coins constantly to donating the funds directly to the DAO, you help this world to become a better place not only for us but for many generations to come. The guy, whom you helped today with UBI, may build a technology that will save millions of lives tomorrow.

Don’t miss any announcement by subscribing to our social media accounts:

Official Website: https://jax.network

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Jax.Network provides the technological infrastructure for a decentralized energy-standard monetary system. Our blockchain is anchored to the Bitcoin network and issues two digital currencies JAX and JXN.

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