THE CONCEPT OF DAO RELATING TO GRO PROTOCOL
Almost everyone in the cryptosphere is saying DAO is on its way to mainstream adoption. It seems like a really catchy phrase to say; ironically, lots of people in the cryptosphere don’t know what DAO entails.
DAO date as far as 2008, the early year of Bitcoin where it was used by the Bitcoin code to execute and confirm transactions. This eliminated the need for intermediaries in the execution of financial transactions.
In 2016 with the inception of the Ethereum mainnet, THE DAO was birthed through a crowd funding event. Its initial purpose was to serve as an investor-directed venture capital firm. Unfortunately, it was hacked due to a bug in its code. This led to a loss of about $50 million worth of ETH.
Though the initial project failed, other projects learnt from this experience and worked on DAOs underground. Overtime, it has become much more and more blockchain enthusiasts are keen on developing a better system through it. If you are keen about the blockchain and cryptocurrencies, one of the core concepts to familiarize with is DAO.
What is DAO?
DAO which mean Decentralized Autonomous Organization refers to an automated software structure or financial system on a decentralized blockchain that executes commands, facilitates and manages transactions based on computer encoded rules called smart contracts, outside the control or influence of a central administrator or body.
Features of DAO
It is autonomous — Like in an autonomous government, this means the system is able to govern itself (make and manage its own rules).
It is decentralized — -This means the data and transactions stored on the system isn’t controlled by a central body but instead is distributed across many nodes (computers). Here, power, decision making and other core functions are shared equally among its members by use of crypto tokens also called governance tokens.
It is not hierarchical — There is no special position of authority or order of hierarchy in a DAO. Each member referred to as a stakeholder possesses the same rights in the organization and these stakeholders are responsible for decision making instead of leaders and managers.
It is transparent — One major advantage of the blockchain is its transparency. Any transaction on the blockchain can be seen by everyone. This is because the records are identically distributed across the nodes present on the network and this makes alteration impossible. DAO being a code executed on the blockchain, has this same feature.
Emerging Trends
DAOs are such a big deal now and many wonder why. Most associate this with the growing popularity of NFTs and this is partly true as DAOs help verify authenticity and ownership of NFTs.
DAO & THE GRO PROTOCOL
In all these, it is of import to know that Gro Protocol’s core decision is managed by a DAO, Gro DAO whose governance token is $GRO. This makes investments in Gro Protocol assured and secure as the underlying code is structured to benefit all.
What is Gro Protocol?
Gro Protocol is a DeFi yield optimizer that balances risk and offers leverage and protected savings through its tranching mechanism. It offers different products to match your personal yield and risk profile.