Progressive Decentralization of ViteX

LKK153

Published in

Vite Labs

4 min readFeb 1, 2023

DAO | Governance Board | Foundation

Vite Ecosystem Today

From its inception, Vite Labs has been a proponent of decentralization: the main purpose and value of web3. Since 2018, contributors to the ecosystem have run worthy experiments in blockchain technologies, governance mechanisms, and token economics. Vite has always cherished and nurtured its flagship application (dApp) — the ViteX decentralized exchange (DEX). To ensure lasting success and resiliency in ViteX, both development and operation must be decentralized.

Through collaboration with the Mayor’s Office of Syracuse, Vite was the first project in web3 to work on crypto public finance with the U.S. government. By participating in Berkeley Blockchain Xcelerator, Vite improved the name and network of its ecosystem. Now, Vite’s community is capable of owning and influencing more decisions for itself.

This is the direction web3 is heading — the same direction Vite is going too.

Decentralized Autonomous Organization (DAO) Ecosystem Today

DAOs have taken the web3 scene by storm. Outstanding examples include RaidGuild, MetaCartel, Cabin, Maker, and Moloch— many of whom contribute to the same projects and events including MCON. The DAO tool ecosystem has evolved rapidly. Examples include DAOHaus, Coordinape, DeWork, Syndicate, and Hats Protocol.

Sovereignty, autonomy, and consensus are core ideals in web3. Vite Labs should align with those ideals by transitioning ViteX into a DAO. This process of progressive decentralization is happening all over the web3 space and new best practices are codified every day.

ViteX Ecosystem Today

To date, ViteX has been managed under the direction of Vite Labs. This relationship between DEX and protocol is commonplace in many of the best protocols out there. Vite Labs provided a number of centralized functions necessary for the creation, traction, and long term success of ViteX including:

Credit and compliance services: due diligence, operator/gateway verification and certification, security against scamming, legal responsibilities, etc.
Technology and product contributions: product development, maintenance of go-vite built-in contract code, management of off-chain services including token service and ViteX application programming interface (API), development of Hummingbot, etc.
Marketing and community engagement: business development, strategic partnership, mining management (on certain pairs), social media, customer service, etc.

It is important for ViteX to free itself of centralized services and authorities including Vite Labs, so that it can thrive on its own feet in the long run. Vite Labs will remain a contributor to ViteX like any other contributor from the community.

Decentralization Plan: Future of ViteX

Vite Labs will progressively hand off leadership, development, and maintenance of ViteX to decentralized yet trustworthy contributors.

1. Launch ViteX DAO and Governance Board

ViteX DAO will own ViteX’s smart contracts, maintain off-chain services, lead ViteX development and marketing efforts, approve new operators/gateways, and more. The DAO will be governed by holders of VX and a Governance Board elected by VX holders. The Governance Board is meant to keep the protocol safe and represent the interests of ViteX users. Governance Board members can be terminated by VX holders.

2. Launch of ViteX Foundation

ViteX Foundation will be the primary entity responsible for legal, tax, and regulatory obligations. ViteX Foundation will also serve as the home for ViteX’s various assets, including 100% of Community VX (25% of daily distribution to date), all of ViteX’s intellectual property, and necessary licenses (and contracts) that keep ViteX running.

3. Launch of On-chain Governance

Built-in on-chain governance at the protocol level is not yet available on Vite’s blockchain network. Vite Labs will work with the Governance Board to strategically introduce on-chain governance mechanisms into the ecosystem. ViteX DAO may enable on-chain governance on the ViteX contract independently of the Governance Board.

Proposals from the community will be heard through thoughtful discussion and debate. Proposals can be brought through a Governance Member, run through Vite Snapshot (DAO tool) for voting by all VX holders, and executed through DAO-assigned contributors.

Front-end development (e.g. https://x.vite.net, also known as Web Wallet), desktop wallet, and ViteX website (https://vitex.net) will be maintained by ViteX DAO. Vite Labs will continue to contribute to wallet development but any code merge must be approved by ViteX DAO.