One of the great things about the JUNO blockchain is the built in CosmWasm functionality which allows for smart contracts. One of the great use cases for smart contracts has been the DAO. DAO is short for Decentralized Autonomous Organization. This is basically an organization where token holders all have a vote in the decisions of the organization. In many cases this includes a treasury of funds that are governed by the token holders.
Because of these principles, there should be no central authority in a DAO as the decision making is spread out among the token holders. This can be an issue where one party holds a majority of the tokens and have then staked for governance. The idea is to spread the vote out to as many people as possible to increase the decentralized factor. This can protect the organization from being shut down by one central point of failure.
What Is DAODAO?
DAODAO.zone is a platform built on the JUNO blockchain that allows anyone to come and create their own organization. The only cost is the network transaction fees, which on JUNO, are extremely cheap.
DAOs can be created to represent anything from a book club, charitable organization, or a massive company. With the DAODAO platform, you will have a couple of different options on what kind of DAO you want to set up.
Membership Based DAO
A membership based DAO, or a 'multisig' DAO is for a smaller organization that has just a few members who are responsible for making decisions. Members are added based on their wallet address instead of a token holding, so this makes a 1 person, 1 vote situation. Members can be added or removed by a proposal at any time. If the majority vote to add or remove a member, the action will happen. The treasury is managed the same way. Any member can submit a proposal and the rest of the 'voting board' will vote for or against the proposal.
Governance Token Based DAO
A DAO that runs based on a governance token is for a much larger organization where the decisions are made based on stake weighted votes on proposals. When you create a DAO with a governance token, you will have to find a way to distribute the token. At creation, you will set the initial token supply, which can later be increased via a DAO proposal and vote.
In case of the carbonZERO DAO we issued out tokens to our carbonZERO Foundation multisig DAO that is managed by our team and will be distributing the tokens from there. This way we don't have to get a quorum every time we distribute tokens to our delegators. We are distributing tokens to our delegators currently on EVMOS and then if we can get back into the ACTIVE set on JUNO, we will distribute to our delegators there as well.
All DAOs can handle their token distribution differently. Juno Tools has a great multisend tool that allows you to upload a CSV file and perform a bulk send. This is a great way to distribute your tokens. DAO creators will have to come up with a plan on distribution and whether or not they will list on any exchanges like Junoswap or Osmosis.
Voting in a DAO with a governance token can be set up to require a certain percentage of the token holders to show up and vote for the vote to pass. These parameters will be set at the creation of the DAO, but can be changed and modified later on via a DAO proposal and vote. Other parameters like number of days a proposal will be up for voting, a set proposal fee, and more can be set up at creation and then changed later on to suit the needs of the DAO as it grows.
Setting Up A DAO Proposal
Creating a proposal on a DAO in DAODAO is extremely easy. First off, in a governance token controlled DAO, you will need enough DAO governance tokens to pay for the proposal fee, if there is one, so you will need to look out for that. Creating a proposal on a membership based DAO, or multisig, is virtually the same thing without the proposal fee.
After that, you just hit the 'Create a Proposal' button, enter the title, description, and then add an action from the list of options! The video gives a visual example of how easy it is and what you can do with a DAO proposal, just without actually starting a proposal.
https://news.carbonzero.zone/wp-content/uploads/2022/08/Screen-Recording-2022-08-23-at-10.47.58-AM.movDAOs Are The Future Of Organizational Governance
The concept of the DAO is not a new on in the crypto space, but it is finally starting to see its time in the spotlight. Sometimes under scrutiny, but that is the beauty behind the transparency of the blockchain. Unlike a corporate board, where decisions are made behind closed doors, the decisions of a decentralized autonomous organization is open for all to see so things happen on a transparent basis.
At the carbonZERO DAO, we are distributing our governance tokens to our delegators so they can have a say in how and what ecological causes we donate to. 10-30% of our validator commissions are used in the DAO to plant trees with Ecologi or to any other ecological project that is proposed and voted on in the DAO. Note at the time of writing this article, full governance voting for the cZERO DAO has not started as the first round of tokens have not been distributed yet.
What kind of DAO do you want to create? Really we are in the early days so the sky is the limit! For whatever type of DAO you choose to create, we hope you look at the DAODAO application built on the JUNO blockchain to get it started!
We are carbonZERO
carbonZERO is a full service, eco-conscious validator node operator, providing infrastructure for several blockchain in the Cosmos ecosystem. We run top of the line bare metal servers with data centers that work to be carbon neutral. Our node architecture consists of frontline sentry nodes for ultimate security running TMKMS for double sign protection. We also run 24 hour monitoring on all nodes to help secure against any significant down time.
We are a small but highly passionate team, not only around blockchain validation, security, and decentralization, but also around protecting and preserving our environment for generations to come. This is why we have started our eco-friendly DAO where we donate up to 20% of our commissions to ecological projects around the world, primarily focused on planting trees to offset carbon emissions. Our DAO members help direct our donations through governance voting and proposals.
Stake your $EVMOS, $JUNO, $CMDX, $MNTL, $ROWAN, $HUAHUA, and $NOM with carbonZERO using our Restake app and if Authz is available, you will be able to auto-compound your tokens!
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You can track our tree planting progress on our Ecologi page!
Posted from my blog with Exxp : https://news.carbonzero.zone/2022/08/23/introduction-to-daodao-on-juno/
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I have looked at DAODAO before but not a fan of JUNO after that whole stealing from the whale thing. Thanks for sharing!