Vote, Decide, Earn Rewards: The Power of DAOs
DAOs represent an important part of the blockchain and cryptocurrency world as an emphasis on collaboration continues to increase.
A DAO (decentralized autonomous organization) is a cooperative group where members are bound by a set of bylaws executed through smart contracts. The structure allows for decisions to be made in a transparent way even if members have never met.
The autonomous nature of a DAO means they can be used among friends to simply pool funds for activities, and as an integral part of a multi-million dollar company looking to make decisions while managing hundreds of employees.
There are several types of DAOs based on overall purpose and functionality. Some of the more famous in the space are known as protocol governance DAOs. These entities issue governance tokens and feature participants voting on changes. Investment Pool DAOs focus on collecting capital while Collector Pool DAOs work on building NFT collections.
PleasrDAO organized on Twitter to purchase a genesis NFT celebrating Uniswap’s v3 and also spent about $5.5 million buying Edward Snowden’s ‘Stay Free’ NFT in April 2021.
The organizational capabilities allowing DAO members to help dictate where funds are spent and in the case of PleasrDAO, to make headlines with purchases, are one of the biggest advantages of DAOs.
Any disputes can be solved by a vote — putting an end to conflict in a manner much quicker than what is seen at many traditional organizations. Some DAOs are even organized into layered governance structures with subcommittees, working groups, and flexible pockets where users can vote and make hyper specific decisions without bureaucracy.
Understanding The Benefits of DAOs Through PhoenixDAO
The unique and multilayered aspects of DAOs are on full display with PhoenixDAO, a digital identity-based suite of protocols and products focusing on authentication, payments, and identity within the DeFi world.
Phoenix’s DAO has a few unique structural nuances that further empowers voters to participate in the governance process and earn rewards. Participants who stake the native PHNX token and actively vote and create new proposals can receive rewards from the DAO pool.
According to the Phoenix Foundation, 30% of the total supply of 110,000,000 tokens is allocated towards supporting the DAO and rewarding participants. DAO members with more than 10,000 PHNX are able to make a proposal (this number is subject to change based on how the community votes), while members interested in voting are required to stake at least 1,000 PHNX. Members can vote to change the DAO’s governing structure, leadership, aspects of the underlying protocol, marketing and listing endeavors, and how participants are funded and rewarded by ecosystem participation.
An Emphasis On Transparency And Efficiency Propels DAOs to the Forefront
In contrast to other DAOs, all spending voted on by DAO members will be posted on a running budget page to foster additional transparency. Phoenix’s DAO is also self-sustaining and does not rely on outside donations to function. These attributes ensure a transparent structure empowering members to vote and assuring decisions carry weight and influence.
The ability for members to play a part in the governance process of a protocol and potentially earn rewards for their activity make DAOs one of the most unique and potentially groundbreaking aspects of the decentralized finance and wider crypto world.
DAOs are even slowly being embraced by those in traditional entities interested in a different organizational and governance structure. As more and more people become comfortable with DAOs and learn about their benefits, projects like PhoenixDAO continue to demonstrate their usefulness and effectiveness.
PhoenixDAO is a revolutionary decentralized environment that has curated a list of flagship dApps, all designed to create a more rewarding and accommodating environment for the crypto community. PhoenixDAO is powered by The DAO (governance system), Staking dApp, Events dApp and the dApp store.
PhoenixDAO is an autonomous project with unique protocols (Identity management, authentication, payment, and tokenization protocols), which helps in creating a secure and safe decentralized space.
Learn more about PhoenixDAO and Events dApp at https://phoenixdao.io/.