A place for participation — https://dao.lumenswap.io/
When the blockchain revolution started with the motto of decentralization, all its projects were built based on decentralization; however, they were still governed in a centralized manner.
Project team members decided about the fate of the projects or the way the budgets would be allocated. This was in complete contrast with the inherent philosophy of blockchain technology. A revolutionary movement with the ideals of distributing authority and ownership gave only a shadow of those promises to its followers. This was true until the concept of DAO was introduced. A DAO is a place where the community members or token holders of a project can decide about its future, have voting rights, and play significant roles in important decision-making processes. This was a pivotal moment in the true development of the global blockchain revolution, where its potential began to be realized.
Due to the growth of the Stellar ecosystem during the last few years, the time has come to bring full democratization functionality to the network. Therefore, we have decided to design and launch our DAO platform on the Stellar ecosystem.
What is the Lumenswap DAO client?
The Lumenswap DAO is a client built on the Stellar network that will support standard DAO functionality for Stellar ecosystem projects to execute their own community governance.
Revolutions start with participation, not passive Tweeting. If you are a community member, you need to avoid being passive and participate in the movement you care about. Likewise, if you are a project owner, you should distribute the authority of your project to its genuine and essential supporters, i.e. the community, who should have a say in the direction of project development.
As you know, due to Stellar’s low transaction fees, users will no longer worry about spending too much of their assets to participate in governance. Moreover, we will provide an excellent user experience of interacting with our DAO client.
$LSP burning 🔥
Every project will be required to pay 50k LSP to use Lumenswap’s DAO service and all will be burned.
This creates more value and utility for Lumenswap’s native token and ecosystem.
To establish your governance on the Lumenswap’s DAO client, send an email containing your project’s information to firstname.lastname@example.org. Our team will choose and contact the projects that meet our quality criteria and have real, active communities.
DAO client sections
Board: Here, you can see which projects have established their governance on the Lumenswap DAO.
Governance info: Here, you can see any governance info, such as web URL, an explanation of the project, and the number of community members.
Here, you can see the proposals received for the corresponding governance and sort them based on various statuses.
How is a proposal created?
To create a proposal, you need to lock a predetermined amount of the native asset specified by the project team for 5 days. Start by clicking the Create proposal button. Then you will be redirected to the webpage in which you need to enter the required information for creating a new proposal.
Note: The duration of all proposals created on the Lumenswap client is 5 days.
Note: All proposals will have a revoke proposal option, which is also mandatory due to the multiple-choice nature. Its application is for when the voter disagrees with the proposal.
Let us elaborate with an example: Assume a proposal has been offered with the following subject:
What color would you swap the Lumenswap logo color for?
What would you do now as a voter to keep the logo blue? This is where the “revoke proposal” option comes into play by which you can reject a proposal altogether.
Proposal info: By clicking on each proposal, you will be taken to a page where all the details about the proposal will be visible.
Here you can also see the proposal’s results based on the percentage and the number of assets spent on them.
Here you can monitor all the voting activities regarding each proposal.
My activities: Here, you can see all your governance activities in different projects, such as voting for a proposal and creating a new proposal or claiming those that are due.
Now, let us see how it can build fully decentralized governance on Stellar. If you are bored by the technical details, you can skip this section (!)
As you most likely know, Stellar does not support smart contracts. We have already mentioned multiple times on our social media that Stellar has the right mix of operations to emulate smart contracts.
You can always find your solution on-chain.
There are two important points for making a distributed governance on Stellar.
1. Proof of level of authority:
We employ the claimable balance operation to prove that each person will lock a specified amount of assets while carrying out an operation in a DAO. To create a proposal, a claimable balance will be set for 5 days, which can be claimed afterward or at the time of the proposal ending by the proposal creator. This claimable balance will also be used while voting for a proposal. The time is set on the last day of the desired proposal. This way, the user can claim their locked asset after the end of the proposal. For using this operation, you needed to specify a destination address. However, we have decided to set a locked address (weight 0) as the destination address of all claimable operations on our DAO client. A locked address means that no one in the world can carry out any operations on it, even with its private key.
2. Data Storage:
Due to limitations imposed on the storage of proposal data, we have stored its information on another network called IPFS. Our stored data’s hash would be injected into the Stellar network through a ‘manage data’ operation via a transaction on which the ‘claimable balance’ is created. This way, the data from the two networks could be linked.
In the end, we are incredibly excited to share this update with our community and the wider Stellar family. Community-led governance is an important issue for cryptocurrency projects and gives an essential voice to the users who donate their time and support to different ventures. Bringing this functionality to Stellar is a great step forward for the ecosystem, and we cannot wait to hear your thoughts and see the results of our DAO client.
Thank you for reading this article.