Decentralization hangs on the premise of transferring away decision making authority from a single or central entity, to a distributed group. In light of the news we’ve witnessed over the past week, the case towards decentralization continues to strengthen day by day.
Tezos is a decentralized and permissionless Proof of Stake blockchain network capable of amending itself through a formal and well defined governance process. Tez represents the digital currency fueling those seeking a security focused and state of the art smart contract platform.
To learn more about this process within Tezos be sure to check out the video
discussing how this process differentiates from Bitcoin mining.
We’ve begun to see more development around DAO’s on Tezos. It’s important to understand just what exactly a DAO is, however. One can think of a DAO similar to a venture capital fund. In the same way the fund provides capital for a new company or startup - A DAO can provide funding in an automated and decentralized method. That is, there are no board of directors or management structures compatible to that of a VC fund.
This structure goes beyond just funding, however. Since blockchains comprise of more than just an underlying technology, there’s a vast interplay between the technology itself, how to govern it, economics, rules and regulations, and more. All these subsets, if we wish to call them that, create an image of a modern day country - and within that country there needs to be states, cities, and towns.
We can look at a DAO as an example of the above.
With the announcement
of Homebase from TQ Tezos, there will now be an efficient means enabling developers or interested community members to launch DAO’s on Tezos using a friendly user interface.
To learn a bit more why this is a necessary component within the Tezos ecosystem, Gregory Rocco explained
a bit more within the latest Tezos Spotlight.
“It seeks to ease any barriers associated with participating in a DAO in the Tezos ecosystem. Normally, blockchain-based applications and primitives are marred with usability issues due to a divide with both technical and non-technical crowds. A project team may be technical, but its followers who keep a particular platform or protocol running may not be — but it shouldn’t disenfranchise them from any decentralized decision-making. It promotes efficiencies by offering teams the means to easily launch DAOs, and participants the means to easily submit and vote on proposals for any active DAO with a few clicks after connecting a Tezos wallet.”
Of equal importance, Tezos Commons has announced
that we will be evolving the Community Rewards Program (CRP) into a DAO by the second quarter of 2021.
As the events unfolding before us continue to take shape, it places greater importance on amending a truly broken system by working towards a better one. The work we’re witnessing within Tezos today around DAO’s, DeFi, NFT’s are paving the way for driving social and economic change on a global scale.