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DAO

DAO integration

What is DAO and how does it work?

Decentralised Autonomous Organisations (DAOs) are social organisations represented by rules encoded as a transparent computer program, managed by the members of the organisation, and not affected by a central government. Think of DAOs as an online community of like-minded people who are sharing a common bank account. These individuals can set up a group which will establish a mission and make a collective decision on how to fund it. There are three main pillars that explain how DAOs work. First pillar, smart contracts are used to define rules that are voted on by the community. Decentralised autonomous organisations (DAOs) run on smart contracts and have no central authority. Rules for operating a DAO are laid out in these smart contracts. In order to amend these rules, the DAO's core community members must vote on them. Creating a sustainable and autonomous DAOs relies on the use of smart contracts, which govern the DAO's operations, governance system, and incentive structures. Subsequently, the purchase of DAO tokens can be used to help fund the DAO's expansion. In order to get funding, the smart contract rules must first be deployed on the blockchain. The smart contracts make and distribute internal property like native tokens (which can be used to vote on or reward specific protocols or transactions). The DAO's native tokens, cryptocurrencies associated with specific projects, can be bought by people or groups who are engaged with that DAO’s constitution (set of smart contracts defining relationships dynamics within the organisation). As soon as a DAO has sufficient funding, token holders may vote by consensus to make most DAO's decisions. To promote homogenous growth of the entire network, the DAO's stakeholders work together sharing common goals. Additionally, members can be incentivised for taking on various tasks within their DAOs, like token distribution and treasury management, by earning governance tokens.

What are the benefits of a DAO?

DAO's transparency for what needs to be transparent, secrecy for what needs to be kept secret and decentralised structure empowers its users to take full responsibility for the protocol's upkeep. Smart contracts enable DAOs to be almost fully automated, allowing for the automatic execution of clauses. DAOs remove middlemen and effectively reduce third-party transaction costs so that the organisation is greatly benefited for its existence on the blockchain, leveraging, quite oftenly, in higher profit margins than traditional businesses. Moreover, each token holder has the ability to make decisions for the organisation. The amount of voting power a member has is based on the number of governance tokens they bear, but it does not grant them any additional rights or benefits. If a DAO consistently succeeds in delivering what it has originally proposed, the ownership tokens naturally appreciate giving direct value to token-holders who possess them. This strategy promotes a healthy environment where a balanced percentage of the overall DAO direct and indirect economy is applied in rewarding contributions in the decision making process. Engagement is maximised by inviting token holders to participate in the organisation’s governance and often results in wider spread longer term investing mindsets in the community.

Firepin DAO Integration

We are pleased to announce the Firepin’s DAO integration for the first quartile of 2023. Our core values are closely related with the transparent and decentralised DAO’s structure. DAO will help Firepin’s community to achieve an almost ideal level of decentralisation while paving the way for a new era of corporate governance. With the DAO integration we will offer many benefits for our community members (full decision-making authority with meaningful rewards, whether social, financial or both, in line with the DAO's expansion). The concept of Firepin entities' strong relationship is akin to that of a tree, where healthy solid roots, respectable trunk, and connected branches with delicate green leaves are harmonically contributing for long-term growth.