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DAPP Governance: Can DAOs-on-DAOs Improve Governing Incentives?
The DAPP Network recently implemented a new governance model. This change allows DAPP token holders to decide their own future. The community can create, vote on initiatives and proposals. This change gives more power to community members. And LiquidApps could potentially build products using the DAPP Network. DAD is the largest DSP on DAPP Network and they’re using a DAO-on-DAO system to participate in DAPP Network’s governance. This DAO’s main product, DAPP Account, emphasizes the potential of LiquidApps and DAPP Network technologies. Dan Larimer recently praised the LiquidApps team. And his decentralized vision appears strikingly similar to DAPP Network’s ecosystem. Could he potentially use the DAPP Network on future projects?
DAPP Network Governance
The LiquidApps team built a lot of technology in the last two years, but their hands were tied because they couldn’t use it themselves. They were busy laying the infrastructure to help other developers and DSPs launch products.
Everything LiquidApps designed was for the community. This new governance change, however, allows DAPP Network to become a DAO. Community members can now propose and vote on desired products. And LiquidApps could potentially engage in these initiatives as community members themselves.
DAPP governance requires participants to dedicate tokens specifically for voting on proposals. You’ll need to stake DAPP on the governance portal in order to vote. If you’re staked to a DSP, you may want to unstake a portion of these tokens for governance. Some DSPs might act as a proxy, voting on stakers behalf.
For instance, DAD currently hosts the largest DSP. Their community wants the best for DAPP Network and vice-versa. Since DAD is collectively the largest DAPP stakeholder, they’ve created a proposal to stake 20% of DAD’s DAPP vault to DAPP Network governance. Those staking DAD tokens will decide how DAD uses their DAPP tokens to vote on DAPP Network proposals.
New proposals could provide a reward in DAPP tokens for community members that fulfill the proposal’s implementation. If there’s competition to fulfill one proposal, the competitors could potentially bid for less compensation. This model opens the doors for a truly decentralized governance system.
DAPP Network pioneered an airHODL method, airdropping vested DAPP tokens to EOS holders. But the two-year vesting period is over and almost 90M DAPP tokens were unclaimed.
Since these funds were originally for the community, it’s only right they’re used to empower DAPP Network’s governance model. The millions of tokens will become a funding mechanism for new proposals. Community initiatives are now rewarded in DAPP tokens upon completion.
If someone wanted to propose building a DAPP Network bridge to Binance Chain, they would simply create a proposal on dappgovernance.com. The community could decide to pass this initiative and then vote for appropriate bounties. LiquidApps wouldn’t be the only developers taking-on these requests. Anyone could build the bridge and claim the DAPP token rewards.
This scenario illustrates how true DeFi is conducted. If the community wants certain products built or deployed, they’ll create a proposal and decide on rewards. Anyone is free to attempt this proposal’s deed and then receive compensation.
DAOs on DAOs
LiquidApps envisions a mesh network of many-to-many token bridges. Multiple DAOs would probably exist around these different tokens and bridged communities. This scenario could establish smaller, delegated groups within larger organizations. These smaller groups would handle day-to-day decisions on behalf of the greater community.
A variety of different communities will potentially use DAPP Network. These communities could each form their own DAO and establish delegated parties to control certain matters.
Decentralization is hard and it’s not easy to align people spread-out across the world. There’s already a mesh of DAOs and a platform hierarchy like there’s a mesh of blockchains. Smaller, proxied teams with higher authority could speed-up implementations. This idea could also help organize the community’s onset initiatives.
Each DAO will have their own proposals, voting and incentive mechanisms. Most will benefit from delegating a small group of leaders to deploy products quickly. These leaders, of course, will share the community’s vision.
The DAPP Network, for instance, delegates final decision-making to 21 entrusted guardians.
DAPP Network’s new governance implementation is very similar to DAOs like DAD who’ve made immense progress. Since DAD’s developers are building products so quickly, the community has entrusted a team to determine bounty rewards. This style of DAO delegated leadership is practical for most communities.
DAD’s DeFi products use the DAPP Network, but it’s a separate organization. Many people involved with DAPP are also involved with DAD so there’s a high level of synchronization between the communities.
DAD’s main project, DAPP Account, is the best available product to demonstrate LiquidApps technology. DAPP Account aims to provide everyone with an easy DeFi user experience. This product should also help developer teams understand the potential of DAPP Network.
DAD’s community has speculated in Telegram chats about future proposals allowing DAPP Accounts to become an integral piece of DAPP Network. Each individual dApp needs to add support for DAPP Account integration. These integral utilizations would make dappaccount.com more like Scatter and Anchor wallets.
Future proposals might also incentivize developers to integrate with DAPP Account. Dex’s are prime applications to utilize DAPP Account and LiquidApps technology.
Someone could make a proposal to integrate DAPP Account with EdgeDSPs. Since anyone can run an edgeDSP, those using DAPP Accounts would never touch an EOS account. Thus, people accustomed to other ecosystems could run a DSP without using an EOS account.
These proposals, of course, would need to come from the DAPP Network community.
Would Dan Larimer Use LiquidApps Tech?
Dan recently acknowledged LiquidApps has a great team in the ClarionOS telegram. Clarion OS is a new project Dan’s hoping will create a truly decentralized social media platform. Larimer claims he wants to connect people without creating dependencies on centralized infrastructure.
Dan always believed in Bancor’s technology. He embedded Bancor’s algorithm into the EOS resource model. The core LiquidApps team is derived from previous Bancor members. And their advisors consist mostly of those still working on Bancor. So it wouldn’t be surprising if Dan incorporated the DAPP Network into new projects. This integration would correspond with Dan’s pattern of blending Bancor’s products with his own.
Dan Larimer gave a shout-out to the LiquidApps team in a recent interview.
“Do you follow any projects/apps on EOS in particular that are worth checking out?” Dan replied, "I have followed many of the DeFi projects on EOS. I particularly like the work the Everipedia and LiquidApps teams are doing.” - Cryptonomist
“Our only option is to remove our dependency on the infrastructure of the Internet technology giants. This means creating a social media network that does not depend upon app stores, cloud hosting, and domain names.” Dan continues, “Freedom loving information seekers will need to take on the responsibility of running nodes on their own computers.”
The illustration above sounds like Dan’s describing an Immortal dApp. Since EdgeDSPs allow participants to run their own nodes, Dan’s view seems to align closely with LiquidApps.
Since leaving Block.one, Dan’s ideas no longer create liabilities. He’s now an EOS community member and interacts like anyone else. Dan recently did a voice call in the EOS public Telegram channel. And, as suggested by the community, he’s considered making these calls a weekly occurrence.
Dan’s pursuit to build technologies enabling freedom makes him a controversial figure. But he’s proven himself a great blockchain engineer after designing Bitshares, Steem (now Hive), and EOS. Any project he builds should have colossal expectations.
Other Projects Using DAPP Network
Since DAPP Network is open and decentralized, there could be many under-the-radar teams planning to incorporate its technology. Maybe Dan Larimer’s new project is one of them. It’ll be interesting to watch the synergy between his aspirations and LiquidApps as the space unfolds.
Right now, those publicly using DSP services are DAPP Account, EOSDT, YUPIO, Chintai, Consortium, Phoenix, HODL God, EOS Options, and Joule.
After more than two years of building, DAPP Network’s new governance model hands-over its destiny to the community. Those building on DAPP Network understand this project is just getting started.
Join the discussion in Telegram.
This article was prepared and accomplished by Wes Carmichael in his personal capacity. The opinions expressed here are my own and do not reflect the views or opinions of LiquidApps.
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