INTRODUCING EPIK PROTOCOL DECENTRALIZED AUTONOMOUS ORGANIZATION (DAO)
Decentralized Autonomous Organization (DAO) is a blockchain-specific organizational model that addresses a continuing problem in nearly every business and organization.
Blockchain technology provides new methods to trade currency and information in a transparent and secure manner while automating complicated operations.
USE CASES OF DAO
- Decentralized self-employed organizations might primarily assist to develop a trust-free form of corporate governance that changes paradigms.
- DAOs serve a major role in alleviating the common difficulties of principal agent dilemmas by guaranteeing appropriate harmonization of incentive structures and flow of information within a given organization in a codified style.
- A correctly managed DAO harmonizes in an organization or decentralized platform the incentives for stakeholders from founders, tokens, users and the public. The potential impacts of the broad-based implementation of DAOs are huge, as are the actual world obstacles of successful use of DAO technology.
BENEFIT OF A DECENTRALIZED AUTONOMOUS ORGANIZATION
Launching an organization with someone with funds demands a lot of confidence in the individuals with whom you work. But it’s difficult to trust someone with whom you only contact on the internet ever. With DAOs you don’t have to trust anybody, only the DAO code, which is visible and verifiable by anybody, to anybody else
FUNCTIONS OF DECENTRALIZED AUTONOMOUS ORGANIZATION
While the precise underlying mechanisms that fuel a DAO vary amongst blockchain projects, there are many broad phases that a DAO must go through in order to start in a sustainable way. And they are:
- Smart Contract Setup:
Underlying rules must be developed and encoded in a series of smart contracts before a DAO can be implemented. Given that future changes to the DAO’s operational workflows, governance system, and incentive structures will need to be voted on in order to take effect, this phase is arguably the most important step in creating a sustainable and autonomous DAO, as any early mistakes or overlooked details can potentially destabilize the project later on.
After the establishment of the DAO’s governing smart contracts, the DAO needs funds to function. The intelligent contracts of the DAO must involve the production and distribution of some kind of internal property, for example, an authentic token that the DAO may spend, used in voting processes or used to encourage particular actions. Those that are interested in the growth of the DAO can purchase or otherwise get a native token of the DAO, often resulting in the acquisition of voting rights.
Once the DAO obtains sufficient funds to make its choices through a consensus vote, all decisions are taken. In consequence, all token holders become stakeholders who may make suggestions for the future of the DAO and how their money are used. The DAO’s stakeholders will, of course, work towards the most advantageous conclusion for the whole DAO network if the DAO’s token-based distribution policy and consensus procedures are correctly established in its underlying smart contract architecture.
APPLICATION OF DAO TO THE WORLD
DAOs have gained momentum in the marketplace. There are now a number of interesting blockchain projects that have fully integrated decentralized governance systems, notably in the decentralized finance (DeFi) sector. A non-exhaustive list of extant blockchain initiatives that reflect the basic concepts of a DAO is provided below:
The Bitcoin network is the first basic DAO to operate entirely in line with an open participation consensus system coordinating the conduct of a wide network of unfamiliar players. However, the Bitcoin network does not usually consist of a DAO and is seldom called such complicated governance systems.
Dash is a cryptocurrency that provides quick payments and private transactions in an open source, peer-to-peer (P2p). Whether the DAO project takes all decisions through a subset of masternodes collectively remains controversial, as the network’s governance tokens have been distributed to a concentrated wealth by granting a disproportionate vote of power over the project for a small group of stakeholders. The project remains a DAO.
MakerDAO is an Ethereum blockchain-built Decentralized network for credit and the technology underpinning the DAI. The MakerDAO Foundation, which has been leading the development of the project since its inception, initiated several measures in April 2020 to achieve complete decentralization, namely to ensure that MKR holders in general are controlled by the undistributed supply of the project management token (MKR), establish a process to elect paid contributors to help small staff improve voting participation processes. Thus, the Foundation MakerDAO wants to become obsolete and to transfer complete project ownership to its dispersed network of project partners.
To convert Uniswap into a Decentralized community protocol, Uniswap has launched a native governance token, UNI. The Uniswap community, however, has raised concerns about the degree of decentralization given to Uniswap’s governance model, particularly as the introduction of a proposed change by 99 per cent of UNI holdings (each holding less than 1 percent each) requires a minimum threshold of 1 per cent in the total UNI supply in order to present governance proposals.
From the preceding instances, numerous decentralized blockchain initiatives are on the way to attaining the ideals of total decentralization. At this point, the more stakeholders a DAO has, the more it becomes decentralized.. This is a key reason why so many existing blockchain initiatives enable a certain amount of centralized decision-making in the first phases of the project prior to the move to a complete DAO. And, because most DeFi initiatives are just a few years old, many of these projects need to migrate to complete decentralization, even if DAO certification has been achieved
APPLICATION OF DAO TO EPIK PROTOCOL
For a decentralized governance framework, EpiK Protocol uses the DAO in its governance architecture. The decentralized self-government protocol EpiK comprises of four parts:
Users can initiate a proposal, however the costs for each proposal amount to 99 EPK, which is destroyed directly so as to avoid the blocking of community management resources with too many meaningless ideas.
In essence, Domain Expert is a major participant in the business sector. Decentralized Autonomous Organization (ECPO) splits its ideas into three kinds: proposal for a referendum, the proposal for ecological storage and the proposal for ecological knowledge.
Each of the types of decentralized independent organizations stated above is designated solely for a proposal and the criteria are defined in accordance with each proposal’s impact, as users restricted by an impact-based particular proposal.
In addition, for each proposal the vote trend differs.
For the purposes of arbitration, the voting rights are based on votes cast by voters during the most recent vote, and the voting rights are established on the basis of votes cast by the voters during the voting time.
The prizes are awarded to users who participate in the ideas for the storage of environmentally friendly products and knowledge ecology do not pay any extra money to receive voting rights. Users who take part in the vote are also distinctive in that they must lock more EPK to vote and, consequently, they are created with an exclusive incentive from the Decentralized Autonomous Organisation.
The resultant DAO organisation, independent of its founders or any other central authorities, can operate. As DAOs are open source, they are documented and can be examined by anybody, all of their rules and transactions and activities, typically ensuring complete transparency and immutability. In summary, a joint aim for the DAO stakeholders is to promote the implementation of certain network incentives established by the DAO’s underlying consensus norms.
FOR MORE INFORMATION, VISIT:
OFFICIAL WEBSITE: www.epik-protocol.io