Let’s talk about the framework of DAO particularly in the Constitution of DAO. Do we need a governing body for DAOs, what standard does a DAO need to comply to or do we not even need a standard for DAOs?
Three rules that DAO can follow and enforce to make its community operate more sustainable and resilient.
Before the Constitution
From Greek Mythology where rights were born to have, to Roman Empires where rights were conquered by military power to become monarchy to Medieval the church controlled the power, there was a long discussion on what the government should do for their citizens. Until John Locke “believed, contrary to claims that God had “made all people naturally subject to a monarch”, that people are “by nature free.”(Tuckness)”, the idea of Constitutional right to every human being was flourishing.
Before the Constitution of the United States, there was a period of Federalism. The idea was that each State sent its representatives to join the meeting to discuss national issues. It failed miserably because no one wanted to waste time and travel a long distance to meet without any incentives received.
The idea of the Constitution is to create an agreement for every citizen to protect their basic rights through a government as the organization to follow and enforce such rules. The government cannot be either too powerful to crush their own citizens (like the British Empire at the time) or too weak that citizens could easily overthrow their own government (Like Fresh Revolution at the time). Then, the structure of the balance of power was born that could restrict the power of government by itself.
Direct Democracy to Open Democracy
Socrates is credited as a founder of Western philosophy yet was sentenced to death through direct democracy. Yet, true democracy has never existed in human history. Because if each person has to go through a voting process, nothing can be done. In contrast to open democracy where policies are submitted through a crowdsourced method and representatives work on policies that crowdfunding through rather than lobbying through the Congress by corporations.
Rules to DAO
Ideas of political progress can apply to DAO. There are no set rules of communities in DAO and everyone can make up their own. However, the rule can have a spectrum between corporations-like that restrict DAO to operate under sets of rules few to create and to laissez-faire which community took over the control.
I then proposed three rules to build DAO:
- DAO will treat community members fairly
- Community members should obey rules DAO voted and approved
- None will proceed with activities to jeopardize DAO in anyway
The first rule is to help DAO become a sustainable community that members by no means can be exploited or treated as a dispensable resource.
The second rule is to promote an environment that the community collective works through and becomes an asset to the community to maintain and to protect.
The third rule is to prevent abusing power to take advantage of their community or their members.
Of course, by not any means that such rules are strictly enforced and to follow but there are some extenuating circumstances such rules are to implement and help community members to grow and support each other.
Check out my another article Learn How To Defi Part 1
As DAO progresses and becomes a more complicated organization, rules are likely to be implemented and enforced to make sure community members have an environment that supports their work and experience.
Stay tuned for the next article!
How high leverage crypto lending market collapses
As the number of crypto lending projects increases, the demand for high-quality banks in this space has also increased. However, the current market is in a tailspin and not much can be done about it. Like other asset markets, such as stock and bond trading or real estate development, the crypto lending market faces multiple headwinds: low-interest rates, rising competition, and regulatory uncertainty. Traditional lenders are unwilling to offer crypto loans at competitive rates or as a package deal. Even if they did deliver it at competitive rates, many others would reject it out of hand. This leaves traditional financial institutions as the only alternative left. To avoid becoming an antiquated sector that cannot support itself, we need more than just more conventional lenders. There needs to be a higher level of leverage on offer so that creative digital assets can become its main attraction instead of simply being another commodity – another loan option. Lenders with leveraged portfolios are necessary even if they do not have the best business practices (e.g., investment vehicles). Weakening the competition will only make things harder for traditional players who have grown accustomed to buying their way into certain industries (e.g., oil) or using other conventional means to reach their goals (e.g., banking).
What is the current crypto lending market worth?
There are over 1,000 crypto lending projects in the market. Some of them have raised more money than others and it is not unusual for projects to generate more than the sum of their (usually smaller) parts. However, the total number of lenders in the market would not be significant without the adoption of blockchain and the payment network it creates. However, the market suddenly collapses in early 2022 due to the market downturn. It makes many people wonder why the market is so fragile.
The demand for high quality digital banks
New digital banks are opening their doors worldwide and offering loans to customers in various forms. Some common forms of lending include cash-out refinance, termite and mortgage loan, and money market funds. Other assets usually secure these loans rather than security-rated assets. They may offer higher interest payments but the risk of default is also very high.
How big of an impact will the current market have on business confidence?
The amount of money raised through these projects can greatly affect a lender’s business. If the number of lenders increases and the number of projects increases, then the number of do-it-your-self (DIY) loans will increase as well. However, the most significant impact will be on the confidence of the banks in the industry. This will have a dramatic and far-reaching impact on the entire commodities and financial services industry. There will be a loss of vendor relationships, reduced transparency, and a decline in investment confidence in banks. These will hurt all parties, from the lender company to the government. One example is the lending company Vauld. Unlike traditional lending services, crypto lending solely depends on the algorithm to determine the opportunities. It works when the market goes up but it does not work when the market goes down. When valuation goes up, the interest payments are worth less than the company holds. However, the interest payment is worth more than the company has when the market goes down. He suddenly reversed the market, putting the company out of business immediately.
What is next for crypto lending in terms of transparency and regulation?
The crypto lending market is small and has little industry publicity, meaning there is not much regulation or regulation-like regulation that could be applied. However, it would be wise to consider this market a low-hanging fruit, as most regulatory and legal developments occur very slowly in a sector that experiences massive fluctuations in demand and supply.
The demand for high-quality banks in this market is very large. There will be no significant movement in the market with the advent of decentralized, blockchain-based ledgers. And with the advent of more blockchain-based assets, demand for high-quality banks will continue to grow. However, a major event like a government ban on virtual currency will spark a meaningful change in the market. There is little chance of this happening soon. With so much disruption and uncertainty in this sector, it is unrealistic to predict the future of bankine. But one thing is for sure: the use of blockchain in banking will become more common, if not inevitable, in the near future.
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We are in a recession, no doubt?!
Are we in a recession? Well, it depends on who you are talking to.
The traditional view is when there are two consecutive quarters of decline in a country’s real gross domestic product is commonly used as a practical definition of a recession.
But, the definition of a recession has started changing.
Nowadays, we cannot agree on the definition anymore. Everything is open and up to debate.
All indicators show that we are heading or have already in a recession.
From the government bailout companies to not allowing a recession anymore in the economy, where are we heading if there is no clear guidance on the economy from the government?
So, we are technically in a recession, but we are not in a recession.
And we are heading into an even worse economic cycle:
But that is okay, and we can redefine everything from now on.
Here is the question about a recession, is a recession man-made or a natural process?
If a recession is caused by humans and is a man-made event, the government has the right to change the definition. Since the government has been created collectively to represent the majority of the people in the nation, they have a right as a creator of the collective force to change the definition of the recession.
What if a recession is a part of nature?
Then refusing a recession is a violation of natural law.
I think a recession is man-made, and it is okay for the government to change the definition if they want to. They have to convince citizens that the change is acceptable.
So, we are in a recession according to the traditional definition, but we may not yet be in the recession if the broader definition claims “a significant decline in economic activity that is spread across the economy and that lasts more than a few months.”
At the end of the day, it becomes a political debate that does not affect people’s daily lives.
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The Froots Are Here and Moving Fast
I was surfing through transactions on the Solana blockchain yesterday, and I noticed a large volume moving on Froots NFTs and decided to check things out.
Froots NFTs sold out fast, and the floor started running up. The mint price started at 2.75 Sol on July 21st. When I saw the project and could get in yesterday, the floor was sitting at 4. Last night and today, the Floor has been floating around 5.5 to 6.5.
What are Froots?
Froots is a collection of 7,777 fruit NFTs.
Froots, also known as ‘The Vibers of Solana’ is a community driven project of cute froots that aims to spread good vibes and provide its holders with great opportunities, through their different ventures. With Froots, we want to experiment and set a precedent for what can be done between Web2, IRL businesses and Web3. While our main goal is to develop multiple subsidiaries in various industries ranging from F&B, Merch, Books,etc… We will always put our community first and make sure that we’re always innovating and keeping it fun.Froots
Let’s Breakdown the Froots NFT Project
The project appears to be a fast-release project. A short roadmap section briefly discovers the project and utilities of the NFTs. Froots announced that only 3 of the 6 NFT utilities had been released the other 3 are still a surprise.
What is Driving the Popularity?
It’s all about the community. The Froots has a fantastic community helping to push this project to the top of Solana.
The Road Map
Froots is a multi-venture brand where holders of the genesis NFT collection will be benefiting from each ventures of the Froots umbrella, through our rev-share program. The first subsidiary will be a juices/smoothies company, and the 2nd one is a merch service venture to help projects develop high quality merch that suits their needs and brand image. We have a lot more in stock but we’d rather overdeliver than overpromise, however we can tell you that the future of Froots will include: Merch, 1/1 Charity Auctions, Web 2 + Web 3 partnerships, Lore related projects, Cute art… and VIBES!https://frootsnft.com/
Suggested Read: The Art Collective Multichain DAO by Metazens – Cryptobite
My Thoughts On Froots NFT Solana Project
I had to jump in on the rise up and make a little profit at least. I love the idea behind it and am curious to see what the other utilities will be. I will also hold at least one just to see where the project goes. They make some cool PFPs for Social Media when all else fails.
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