Everything you need to know about API3’S Decentralized Autonomous Organization
DEFINITION OF TERMS
dAPI:
A Decentralized Application Programming Interface (dAPI) is a safe and cost-effective technique to deliver a traditional API service to smart contracts. It is made up of the following components:
- A decentralized governance organization to manage the Oracle network
- Multiple APIs, where the name API refers not only to a technical interface but also to a service provided by a real-world business;
- And of course, a decentralized network of first-party oracles.
API:
The application programming interface (API) is a well-standardized and documented mechanism for communicating with a certain application in order to obtain services from it. These services might include receiving data or generating an event. APIs allow apps to interact with one another, allowing them to be merged to create more sophisticated applications. Provide a result, APIs are referred to as the “glue that ties the digital world together.”
API3:
API3 is a collaborative effort to create, manage, and commercialize dAPIs on a large scale.
API3 DAO:
API3 is managed by a DAO to decentralize the governance of both dAPIs and the project as a whole. All stakeholders will be able to actively engage in the project’s governance, which will be completely decentralized and open. The API3 token, which grants voting power in the API3 DAO, will be used to do this.
High-level mechanisms like as staking incentives and collateralization will be voted on by the DAO. And also, the DAO will distribute grants from the DAO bank and, as a result, decide on the project’s overall direction. For scalable governance, more granular duties will be carried out through hierarchical team structures.
If the grant application is accepted, the DAO awards the cash to the multisig. Furthermore, based on the specified job, the DAO may approve the team multisig to do particular transactions, such as establishing dAPI subscription costs for individual users.
The following are examples of technical grant topics:
- Development of API3 ecosystem projects
- Managing dAPIs
- Frontend development for API3 (staking, insurance, etc.)
- Setting up bug bounty programs, hackathons, etc.
- Developer outreach through articles, tutorials, videos
- Integration of new APIs, dAPI users, smart contract platforms
The followung are examples of non-technical tasks that will be carried out through grants:
- Legal counsel
- Business development to find new API providers, dAPI users
- Operational and financial audits
- UI/UX design
- Marketing
- Subscription and insurance pricing for specific dAPI users
- Payment processing
IN CONCLUSION
The team must provide detailed reports to the DAO in order for the DAO to assess its success. These reports will also provide accountability by allowing dAPI users and the broader public to examine API3 activities at all times.