DAO Governance
Since 2020, we have seen the proliferation of DeFi, NFTs, and GameFi, as blockchain technology becomes more widely embraced. Another blockchain based technology on the rise is theDAO, or Decentralized Autonomous Organization. DAOs embed democratic governance and collaboration in the DNA of many blockchain applications. These emerging entities are based on the central idea of endowing the ‘community’ — as defined by a DAO’s stakeholders — with decision-making powers. In this article, we offer a simple explanation of what a DAO is, and how it will be used to improve the WallStreetNinja ecosystem.
What is a DAO?
The key distinguishing feature of a DAO, as distinct from traditional organizations, is its power structure. Traditional organizations operate on a pyramid-like power structure with several layers of management, which get progressively smaller as it reaches the peak, where responsibility for high level business decision-making is concentrated among a few members who hold leadership roles i.e. power is centralised.
In a Decentralized structure, decision-making powers are distributed among the organization’s members who, in theory, can hold any role right from being a developer to a user. This distributed structure creates equal opportunities for all members defined within a DAO network. DAO membership is generally determined via the issuance of tokens. Token holders of a given DAO are members who, depending on governance rules set by DAO developers, can submit proposals, participate in voting processes, and share in the successes of the DAO. Votes are then carried out through traceable procedures which are expressed in software.
The Autonomous nature of a DAO comes from the set of governing rules enshrined in the software, known as a smart contract. Smart contracts are self-executing lines of code that handle common organizational processes, which would typically otherwise be handled by legal advisors, human resource specialists and other administrators. As such, a DAO’s operations are less susceptible to human error, bias and corruption when it comes to things like distribution of rewards, hiring, and vote processing. Furthermore, by being stored on blockchain infrastructure, smart contracts are protected through machine consensus and are therefore a form of immutable software. This transparent and tamper-proof decision-making guarantees the basic principle of the autonomous functioning of the DAO. Regardless of which member triggers an action in the DAO, it will always lead to the same result according to the coded rules.
The WallStreetNinja DAO
It is reasonable to expect any crypto project seeking to put the community at the center of its project to have its own DAO. In line with WallStreetNinja’s mission to create an Unstoppable truly decentralized movement, it makes sense to incorporate a DAO that will form the backbone of its community-driven operations.
The WallStreetNinja Decentralized Autonomous Organisation (WSN DAO) will be owned and governed by token holders. Upholding the overarching principle of decentralization, WallStreetNinja token holders have the power to define the future of WallStreetNinja. Token holders have the ability to influence project choices such as submitting proposals and voting on new feature requests, as well as changing the governance structure itself.
WSN DAO is being developed with an expected release in the third quarter of 2022. We envision a close-knit WallStreetNinja community where everyone has a say in shaping the future. Let’s flatten the pyramid!
WallStreetNinja
WallStreetNinja (WSN) provides users simplified access to a decentralized ecosystem’s chain of their choice from a single web app. WSN is taking the self custody wallet segment to the next level through decentralized computing and blockchain relays.
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