WOO Network announces formation of WOO DAO to support progressive decentralization
WOO Network is allocating around 300m WOO tokens to the DAO’s Treasury to increase transparency and amplify WOO Network’s activity across DeFi
Overview of the initiative:
WOO Network is launching WOO DAO as an initiative to work towards establishing community governance over its activities in DeFi. The objectives of WOO DAO are:
- Increasing WOO Network’s influence across the growing DeFi ecosystem,
- Enhancing transparency for WOO Network stakeholders,
- Expanding WOOFi’s on-chain product suite; and
- Actively engaging the WOO Network community to support global growth.
From concept to implementation
Since its conception, WOO Network’s end goal has always been a decentralized ecosystem governed by its community members. An ecosystem with an abundance of engaged stakeholders represents many advantages over a single centralized entity, especially in the cryptocurrency space where the ethos of decentralization grows stronger daily.
Consequently, WOO Network has embraced the vision of progressive decentralization. Through strong initial leadership, driven by the various teams building up WOO Network, the project can gradually cede control over its DeFi activities to stakeholders from the community who showed initiative, responsibility, competence, and ethics. Our objectives in decentralizing governance of WOOFi are to promote transparency, increase innovation throughout DeFi and accelerate growth across WOO Network.
This announcement does not imply an abrupt transition to community-led governance. In the initial litepaper, the pitfalls of rapid decentralization were laid out, including the need for careful experimentation at a smaller scale early on. With any DAO-like structure, promoting decentralization creates trade-offs like slower time to execute, added technical risk, and reliance on the community to participate actively. Despite these drawbacks, we believe that building WOO DAO will provide tremendous benefit to the WOO Network in the long run. Accordingly, we will take a progressive approach to establishing WOO DAO.
Introducing the path to decentralized governance
After successfully launching a flagship CeFi exchange (WOO X) and DeFi product (WOOFi Swap), the time came to revisit the idea of progressive decentralization. Two key initiatives of focus now are building the initial structure to support a DAO and the establishment of an on-chain treasury. For structure, a section of the WOO Network’s Discord server has been established to support discussion, proposals, and voting.
Previously, 10% of the total supply (3 billion WOO) had been reserved for the WOO ecosystem. This equates to 300 million WOO tokens, which will be transferred to an on-chain multi-sig wallet and the establishment of the WOO DAO treasury. For accounting purposes, these tokens will now be included in the circulating supply, but can not be accessed or transferred without:
- The majority of on-chain signatures by key holders of the DAO treasury wallet; and
- Approved proposals by WOO tokenholders.*
Moreover, as WOO DAO community governance matures, it will gradually have more influence over the use of funds in the treasury through making proposals and potentially even joining as signers on WOO DAO multi-sig wallets.
*Note: The rules for quorum on WOO DAO voting will be established after members register in the DAO section of WOO Network’s Discord server.
Roadmap for development of the DAO
Phase One: WOO DAO will create an on-chain treasury governed by a 7-person Gnosis multi-sig. The key holders are long-standing team members within WOO Network, recognized for their prudence, engagement, and ethical behavior. Refer to the WOO DAO documentation for more information on Phase One voting.
Phase Two: After an extended period of time, the first phase will be expanded to progress towards full decentralization. Some initiatives may include developing on-chain staking, additions of external multi-sig holders, issuing grants to build products and integrations for WOOFi and broader efforts to engage community participation in governance.
Phase Three: Based on the success of Phase Two, the DAO may choose to adopt an even more open stance towards governance. This could include full reliance on voting on-chain to approve and implement proposals, as well as transferring ownership of WOO DAO’s treasury to a committee of community members.
What can the DAO act upon in this phase?
Some early WOO DAO initiatives may include:
- Grants: The purpose of grants is to fund community initiatives or build products, tools, and services that benefit WOO DAO and the WOO community. Communities, projects, developers, and other ecosystem participants may be eligible for grants.
- Token Swaps: Strategic partners can swap tokens with the WOO DAO treasury, creating a reciprocal relationship tying the two ecosystems closer and furthering the creation of value for WOO token holders. The purpose of token swaps is to align both projects’ long-term incentives towards mutual growth, rather each project aiming to maximize profit.
- DeFi Partnerships: WOO tokens may be allocated to other protocols as part of the partnership, for example, to initiate an integration, bootstrap liquidity, or launch a WOOFi product.
- Treasury Management: Make strategic initiatives to utilize DeFi tools to diversify the treasury or earn revenue for the DAO.
- Delegated Governance: WOO community members can delegate voting for tokens of projects maintaining strategic partnerships with WOO DAO to support an active role in governance.
Prior to the creation of the DAO, two token swaps have already been completed:
- NEAR Foundation: This layer one blockchain protocol agreed upon a swap as part of efforts to actively co-develop the WOO Network and Near Protocol ecosystems. As a result, the NEAR Foundation holds 8,159,091 WOO tokens vesting over 4 years. WOO DAO has staked 624,609 NEAR tokens to help support network consensus and validate transactions. Refer to NEAR Foundation’s article for more information on the token swap.
- DODO: This DeFi protocol agreed upon a swap as part of ongoing efforts to develop WOOFi to support the DODO ecosystem. Thus far, DODO has been instrumental in lending development expertise to the creation of WOOFi smart contracts. DODO pools on Polygon and BSC also represent a significant source of on-chain activity for WOO Network, with over $4B in trading volume since inception. As a result, DODO holds 3,495,339 WOO tokens vesting over 3 years.
As more tokens are added to the treasury through swaps or other forms of strategic partnerships are established, WOO DAO may act in the interest of WOO Network and its stakeholders by participating in third-party governance activities. Stakeholders, such as community members, strategic partners, or Kronos Research, may choose to delegate their token voting power to the WOO DAO. This allows WOO DAO to wield even more influence in broader DeFi governance, strengthening its reputation and the value proposition of the ecosystem. Community members of WOO DAO may even be able to participate in contributing to WOO DAO’s governance initiatives for its strategic partners.
To summarize, WOO Network is undertaking initial efforts towards progressive decentralization by establishing WOO DAO. We encourage you to join WOO Network’s Discord server and become an active member of WOO DAO today!
Stay tuned for all WOO Network’s exciting developments in December!
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