DAO is a new framework for human organization coordination and the core organization of the Web3 world. With 21 years of progress and the push of major institutions, DAO has become one of the most watched tracks in the encryption industry and is considered to be the most promising. one of the directions. Who are the top organizations on this track? How do they work? Let’s find out together with my perspective!
Uniswap is a popular decentralized exchange protocol known for its role in facilitating the automated trading of decentralized finance (DeFi) tokens. The Uniswap community is an ecosystem of users, developers, designers, and educators.
Uniswap’s development team launched its governance TokenUNI in September 2022, a unique act that opened a new governance structure and officially gave the Uniswap community a voice on that day. Including the daily operation and development of the project, specifically allowing anyone holding UNI Tokens to vote on development proposals that may change the operation or infrastructure of the Uniswap protocol.
Before the introduction of this Token, the development team was solely responsible for determining the development decisions of the Uniswap project, and now the governance has been transferred to the community, such decisions are made by the entire Uniswap network, thanks to the introduction of UNI Token. To this end, the team issued 1 billion UNI Tokens to share with the core contributors of the platform, including the development team, UNI community members, investors and advisors. The percentage of total supply allocated to each group is as follows:
- 60% of the total supply: Uniswap community members;
- 21.266% of total supply: team members and employees with vesting plans for the next 4 years;
- 18.044% of total supply: 4-year investors;
- 0.69% of total supply: platform advisors over a 4-year period.
The resources jointly controlled by governance token holders include Uniswap governance, UNI community treasury, protocol fee switching, Uniswap.eth ENS name, Token list ranking, Socks liquidity token, etc.
UNI Holder Proposal Rules
Any UNI holder can submit proposals to modify or introduce new features (provided that there are more than 2.5 million UNIs) and get approval from other community members. Development proposals need to be extended to different levels.
- Phase 1: Temperature Check — Proposers need to pitch the idea to the community and get 25,000 UNI upvotes to be eligible for the next step.
- Phase 2: Consensus Check – Proposers must enable formal discussions to highlight the core changes and strengths of the proposal, and the proposal must attract no less than 50,000 Uni votes in favor.
- Stage 3: Governance Proposal – Proposers submit audited code for final consideration. As with the two phases above, there is a minimum voting requirement to decide whether a proposal is adopted or not, and each proposal must receive up to 40 million UNI upvotes to be eligible for implementation.
UNI holders can vote themselves or delegate their votes to other users to make decisions that represent the best interests of the UNI ecosystem.
BitDAO is a decentralized autonomous organization that hopes to provide a level playing field for everyone in the world by building a decentralized token economy. The protocol is one of the world’s newest and largest DeFi-focused DAOs, managed by BIT Token holders. One of the main goals of the program is to attract developer talent through token swaps and co-development efforts. The token swap will enable BitDAO’s vaults to accumulate a collection of top crypto projects’ tokens.
Launched on August 3, 2021, BitDAO is a very new project, but it is one of the largest DAOs in the vault with about $2.5 billion in assets under management. BitDAO’s vision is to create an open finance and decentralized tokenized economy. The token expands the boundaries of property rights and provides a new economic model for DAOs, collectible NFTs and games. The DAO was founded by Bybit, a top Singapore-based derivatives exchange that launched in 2018 to compete with BitMEX.
The size of the BitDAO vault is second only to Uniswap, and is mainly composed of the contribution of Bybit. Bybit will provide 2.5 basis points of all futures trading volumes to the BitDAO vault, which is calculated to be as high as about $1 billion per year. This contribution is expected to slow down and was initially committed to launching DAOs and operations. Thanks to this support BitDAO was able to immediately attract token holders (about 14,000), contributors and partners within a few months of their activity.
Community and Governance
BitDAO currently uses Gnosis Safe and Snapshot for governance and has an open delegation and proposal process. Windranger Labs is one of the core contributing teams whose goal is to build leading DeFi protocols and L1/L2 while leveraging the BitDAO library. Additionally, they have partnered with Mirana Ventures, a venture capital partner of Bybit and BitDAO, to support the proposal. Since it is a relatively new DAO, there is no formal onboarding process for new members. Joining Discord and following recent proposals on the Discourse forum is the best first step, and as BitDAO improves and defines its process, there should be a clearer indicator of how contributors are immediately useful.
Lido DAO is a community developing a liquid Ethereum staking solution for users to stake ETH and contribute to the security and stability of the Ethereum ecosystem. The Lido DAO manages the Lido Liquid Staking Protocol, keeping the protocol upgradable while determining key parameters to maintain efficiency and protocol stability.
Currently, the Lido DAO has a vault containing about 350 million LDOs (about 35% of the total LDO supply) that can be used in specific directions for the benefit of the DAO. The Lido DAO Vault Fund intends to allocate its LDO supply to use the funds to develop and upgrade the Lido protocol, in order to solidify Lido’s position as the leading liquid staking solution.
How Lido Works
Lido allows users to earn staking rewards without locking up assets or maintaining staking infrastructure, starting with Lido’s staking preparations starting with Phase 0 of ETH2.0. After depositing ETH into the smart contract, the user will receive stETH (staking ETH) ERC-20 Tokens, which represent the user’s ETH balance pledged on the beacon chain, as well as the pledge rewards or penalties for validators in the beacon chain. . When transactions are enabled on the Beacon Chain, users will be able to directly exchange stETH for staked ETH along with accumulated rewards. Until then, unlike beacon chain ETH, stETH can be transferred or traded.
If Lido is to be launched without decentralized governance, users will need to trust a single point of failure to maintain a 1:1 relationship between ETH and stETH. Instead, Lido believes that by distributing the governance of such parameters to a decentralized community, the risk to users can be reduced.
- Lido relies heavily on the design and limitations of the beacon chain;
- Ethereum 2.0 staking protocol may change, so Lido should be upgradeable;
- An insurance provider must be selected and the terms of the insurance cut must be negotiated;
- DAO governance is more available to make decisions on changes to Lido than a single person or team of developers;
- The DAO will be able to pay the cost of developing and upgrading the protocol from the DAO Token library.
Compound is a Defi protocol that has attracted a large number of new users since its launch in 2018. It is a decentralized application (DApp) that runs on top of the Ethereum network. The platform works by letting users invest or deposit crypto funds into liquidity pools to earn interest on their assets. Users can currently use 14 different cryptocurrencies, and the top three markets in Compound are USD Coin, Dai, and Ether.
When users deposit tokens into the Compound pool, they receive cTokens in return. These cTokens represent an individual’s stake in the pool and can be used to redeem the underlying cryptocurrency originally deposited in the pool at any time. For example, by depositing ETH into the pool, users will receive cETH in return. Over time, the exchange rate of these cTokens against the underlying asset increases, meaning you can redeem them for more of the underlying asset than you originally put in – this is how the interest is distributed.
On the other hand, borrowers can obtain secured loans from any Compound pool by depositing collateral. The maximum loan-to-value ratio (LTV) varies by collateral asset, but is currently between 50% and 75%. Interest rates paid vary by asset borrowed, and borrowers may face automatic liquidation if their collateral falls below a certain maintenance threshold. Since Compound’s mainnet launch in September 2018, the platform’s popularity has skyrocketed, with total locked value recently surpassing $800 million.
Community and Governance
Most cryptocurrencies sit idle on trading platforms and do nothing about their holders, and Compound hopes to change that with its open lending platform that allows anyone who deposits backed Ethereum tokens to easily earn interest on their balances or Get secured loans – all in a completely trustless way.
Compound’s community governance sets it apart from other similar protocols. Holders of the platform’s native governance token COMP can propose changes to the protocol, debate and vote on whether to implement changes suggested by others without any involvement from the Compound team. This can include choosing which cryptocurrencies to add support for, adjusting collateral factors, and changing how COMP tokens are distributed.
Aave is a decentralized finance protocol that allows people to lend and borrow cryptocurrencies. Lenders earn interest by depositing digital assets in specially created liquidity pools. Borrowers can then take advantage of this liquidity for flash loans using their cryptocurrency as collateral.
Aave works by leveraging smart contracts to facilitate lending (deposits) and lending. Incentivized by the provider APY, the depositor contributes some assets to the smart contract, and the borrower, after putting their assets (such as ETH) as collateral, promises to return the assets (interest determined by the borrower APY), and pays its extraction. Just like Maker, Aave ensures that the model is over-collateralized. Users end up depositing more collateral than they end up with as a loan.
Aave is different in that borrowers can choose to make loans at a stable or fixed rate, the rate is only maintained for a short period of time until the protocol is in desperate need of liquidity and liquidity providers are not satisfied with the APY they receive, and Can be rebalanced. Aave’s liquidity provider receives a Token whose value is still linked to the value of the underlying Token (such as DAI) and the sum of Token interest accrued according to APY.
In an increasingly crowded market, Aave has several unique selling points compared to its competitors. During the DeFi boom in the summer of 2020, it was one of the largest projects in terms of total cryptocurrency value locked in its protocols. The project allows people to borrow and lend around 20 cryptocurrencies, meaning users have more options. One of Aave’s flagship products is the “flash loan,” which is billed as the first unsecured loan option in the DeFi space.
Another big selling point is that those borrowing through Aave can alternate between fixed and variable rates. While fixed rates can provide some cost certainty during crypto market volatility, floating rates may come in handy if borrowers believe prices will fall in the near future.
Radicle is a decentralized network for code collaboration. The project’s mission is to develop resilient infrastructure for the open source community that is secure, sovereign, and built entirely on open protocols, not platforms. Radicle’s protocol enables developers to collaborate on code without relying on trusted intermediaries. Its peer-to-peer network is complemented by an optional Ethereum smart contract system that supports global names, decentralized organizations, and protocols, helping maintainers maintain their open-source efforts.
With Ethereum, Radicle is harnessing the power of Ethereum and DeFi to enable developers to truly own their collaborative infrastructure. Since its beta launch, Radicle has seen over 1,000 projects published to the web and has generated a lot of interest across the Web3 ecosystem.
How to run Radicle?
The network is powered by a peer-to-peer replication protocol built on top of Git called Radicle Link. Radicle Link spreads data through a process called “gossip”, extending Git with peer-to-peer discovery. That is, participants in the network share and disseminate data of their “interest” by keeping redundant copies locally and sharing (also known as “replicating”) their local data with selected peers. By leveraging Git’s intelligent transport protocol, Radicle Link maintains Git’s efficiency in data replication while providing globally distributed repositories through a peer-to-peer network layer.
Since all data on the network is stored locally by peers on the network, developers can share and collaborate on Git repositories without relying on intermediaries such as hosting servers.
GnosisDAO is a collective that uses Gnosis products to transparently guide the development, support and governance decisions of its token ecosystem. After initialization, GnosisDAO will effectively control 150K ETH and 8 million GNO Tokens.
GnosisDAO is a market-driven prediction set. GnosisDAO’s mission is to successfully manage the Gnosis ecosystem through futarchy – prediction market governance. The application of permissionless prediction markets to organizational governance by GnosisDAO will set a precedent for its application. However, this means that it will take time to test decentralized futarchy mechanisms and establish cultural norms, which is why the program will start with a minimal viable futarchy network. GnosisDAO will use our market forecasting technology to transparently guide development, support and governance decisions.
Through prediction markets, GnosisDAO participants can use the expected impact on GNO as a futarchy metric to guide their decisions. The expected price impact of a proposal decision will closely correlate the value of GNO with the activity of GnosisDAO. However, using Gnosis Impact will not only align with the development of GNO, funding prediction markets will also be a means of gradually distributing GNO, potentially rewarding community participants for voice in prediction markets. GnosisDAO will decide how to gradually decentralize control and how to further implement a robust, well-tested futarchy mechanism.
Olympus DAO is building a decentralized financial reserve token called OHM. Compared with Tether and USDC, OHM is trying to become the first decentralized stablecoin, which has an extraordinary meaning behind it, which means that it will be called the anchor of all cryptocurrencies in the case of decoupling from fiat currencies, And maintain long-term and stable purchasing power.
With the latest version of Olympus Pro, they provide protocol-owned liquidity as a service to enhance the DeFi ecosystem. Operated by a Decentralized Autonomous Organization (DAO), OlympusDAO aims to be a decentralized financial reserve protocol for the entire blockchain ecosystem. OlympusDAO ensures that each OHM will always be held by holding a certain amount of MakerDAO’s DAI in its DAO treasury Be backed by at least a dollar value.
The protocol does this by minting or burning tokens based on the price of OHM to alter its supply. If the token price falls below $1, generating a surplus relative to the risk-free treasury value of OHM supply, the protocol will use treasury funds to buy back and burn the token until the market price recovers to $1. If the price of OHM exceeds $1, the protocol will mint and sell tokens on the open market to buy reserve assets and increase its treasury funds.
OlympusDAO participants can also stake their tokens on the platform to receive sOHM or staked OHM, as the ratio of sOHM supply to OHM Token remains at 1:1, so the same amount of OHM can always be exchanged. Whenever the protocol mints more OHM and sells it on the open market, an equal amount of sOHM is distributed to stakers on an 8-hour supply basis, resulting in a continuous compound reward that can be redeemed for OHM at any time. Alternatively, stakers can delegate their staking rewards to the (3,3) Together draw — a no-loss draw that pools staking rewards and rewards 3 lucky winners who split the total sOHM amount equally.
OlympusDAO has attracted the attention of the market with its novel economic model. Profit seekers and projects holding high the banner of various innovations regard it as the light of DeFi 2.0. From all angles, OHM is an extremely ambitious financial experiment, not only In the field of computing stability and encryption, it even wants to be the only gatekeeper of the encrypted world and the real world.
MakerDAO is an open-source decentralized autonomous organization created on the Ethereum blockchain in 2014. The project issues a governance Token called MKR, and anyone who holds the Token all over the world can participate in the project governance. MKR holders can manage the financial risks of the Maker Protocol and Dai, thereby ensuring the stability, transparency and efficiency of the protocol. The MKR voting weight is proportional to the amount of MKR that the voter has in the voting contract DSChief.
MKR Token (the governance token of the Maker Protocol) allows its holders to vote to modify the Maker Protocol. Note that not just MKR holders, anyone can submit proposals to initiate MKR voting. Changes to Maker Protocol governance variables are unlikely to go into effect immediately after being approved by a vote.
The Maker governance process includes proposal voting and execution voting. The purpose of the proposal vote is to form a general consensus within the community before proceeding to the executive vote. This helps ensure that governance decisions are carefully considered and consensus reached before entering the voting process. The purpose of performing votes is to approve/reject changes to the state of the system, e.g. voting on risk parameters for newly introduced collateral.
Technically, each type of voting is managed by a smart contract. Proposal contracts are smart contracts that programmatically write one or more valid governance actions. The proposed contract can only be executed once. Once executed, it immediately makes changes to the Maker Protocol’s internal governance variables. After execution, the proposed contract cannot be used again.
ENS DAO is a DAO that governs the ENS protocol. ENS is an open, public, decentralized identity protocol running on the Ethereum blockchain. Users can register ENS native ETH names or import a DNS domain name they already own, which they can use as their cross-platform web3 username and profile, one name for all their encrypted addresses, and as a decentralized website.
The design of the ENS DAO is based on a delegation model. The representative model DAO allows voters to elect their representative as the representative of their constituency. This allows individuals to present their changes to other users, who can delegate their tokens to support them. ENS said that most of the ENS DAO functions operate without human supervision, but there are still some issues that need to be solved by humans — such as the multi-signature contracts that control the DAO’s treasury, future funds, and registrar contracts.
In order to build a DAO, users of the ENS domain receive a portion (25%) of the governance token ($ENS) based on various factors. The $ENS Token airdrop will go live on November 8, 2021, and can be claimed until May 4, 2022. Another 25% of tokens are allocated to the core ENS team, while the remaining 50% is sent to the ENS DAO vault.
The first action of the ENS DAO is for users to vote on basic principles that propose a set of rules, with the aim of teaching users how to control ENS. The constitution establishes decentralization and integration as the main mission of the DAO. Overall, the ENS DAO is still in its early stages.
The above is the top DAO Top10 compiled this time. It can be seen that most of these top DAOs are decentralized finance (DeFi) protocols, and the crypto community is increasingly adopting innovative solutions to eliminate governance risks and establish a decentralized ecosystem.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/top-dao-top10-inventory/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.