Snapshot: An interesting DAO tool

DAO is one of the important application directions of blockchain. Most Ethereum ecological projects implement project organization and governance through DAO. However, if the application DAO operation on Ethereum is completely based on the chain, gas fees and currency holding thresholds are the biggest obstacles to DAO governance.

Based on this situation, Balancer launched Snapshot, a fully open source off-chain governance voting platform, in an attempt to solve the gas cost problem of voting on the Ethereum chain.

Snapshot is a voting tool based on the IPFS decentralized storage system. It is used by many encryption projects to vote on its user base. Many companies in the DeFi field use it to help survey users.

The project uses “off-chain” signature technology to reduce voting fees. Traditionally, voting with cryptocurrencies usually incurs fees to handle the movement of tokens.

But on Snapshot, thanks to the clever use of IPFS’s decentralized storage network data. Snapshot uses a layer of network signature mechanism and IPFS. The account of the Ethereum network can be signed with a private key. The signed message can be selected on the chain or not, and the message can be verified off-chain. You can implement off-chain voting. Without “on-chain” verification, any vote is basically free.

Companies wishing to use Snapshot, as long as they have a configuration file on the Ethereal Naming Service, are allowed to view their votes at that address.

Users need a wallet address that contains the required cryptocurrency to participate in voting. For example, on the Snapshot page of Decrypt, the wallet needs to hold NFT to be eligible to vote.

Users only need to connect their wallet to the Snapshot website to vote on any public proposal on the website.

Snapshot uses the IPFS network to create and store votes. For vote creators, these votes are provided through an interface, so they can track things as they happen. Snapshot looks like a governance aggregator, but after combining Aragon’s tools, it may evolve into a complete governance solution, providing a low-cost and secure tool set for projects with governance needs. It provides a constructive middle way in the process of achieving on-chain governance goals.

Snapshot was created by Snapshot Labs in August 2020. Because there are no restrictions on projects and blockchain networks, 52 public chain networks (including test networks) and nearly 4000 projects have been supported. Also because it is completely open source, it means that it can be developed in any direction.

In the future, Aragon will try to integrate with Snapshot. Promote an off-chain polling solution with on-chain execution. It is called optimistic execution. No need to perform expensive calculations on the chain, users can directly submit their results and make guarantees. If someone sees the wrong result, they can raise a question, the submitted result is incorrect, and the collateral can be taken away.

This product will use Aragon Court as an oracle to evaluate whether the submitted results are correct. Aragon Agent is responsible for on-chain execution.

After the off-chain voting ends, the expected actions approved by the voting will be submitted to the on-chain DAO. DAO has a new application called Disputable Delay, which imposes a time lock period before performing the operation. During this time lock period, anyone can object to the lawsuit.

Currently, Snapshot has raised US$4 million to expand its business. The investment fund is led by 1kx and includes The LAO, MetaCartel Ventures, Gnosis, StarkWare, Coinbase Ventures, BoostVC, Scalar Capital, Fire Eyes DAO, LongHash Ventures and Coopérative Kleros.

Part of the funds raised will be used to make background integration easier and include the platform in various DAO development kits such as DeepDAO and Boardroom.

Posted by:CoinYuppie,Reprinted with attribution to:
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