Aragon, an open-source network that enables the development and administration of DAOs on the Ethereum blockchain, has announced that its technology is now integrated into the Arbitrum network.
Making DAOs accessible to everyone
With this partnership, Arbitrum provides its users with an affordable and accessible approach to developing and overseeing DAOs on the protocol using Aragon’s infrastructure. The collaboration now allows Arbitrum users to create DAOs rapidly, securely, and cost-effectively without coding required.
A DAO is an organization that operates through regulations encrypted on blockchain. In contrast to conventional organizations, DAOs function without a ruling organ or leadership structure and depend on a decentralized network of members to create decisions and manage the organization.
This collaboration is set to enable users to utilize Aragon’s streamlined codebase and Arbitrum’s L2 scaling network to swiftly build DAOs without the need of technical knowledge. By using on-chain infrastructure, the new approach helps to eliminate obstacles and costs associated with launching and managing DAOs. This approach therefore enables global users to launch DAOs in a cost-effective manner.
This collaboration is set to make on-chain governance available to everybody in the globe, thus making a positive impact on the widespread application of blockchain technology.
The rise of DAOs a game-changer in crypto
The partnership between Aragon and Arbitrum is a testimony to the rise of DAOs – an indicator of a significant shift in how people give themselves and create collective decisions.
Arbitrum is a Layer-2 network that specializes in reducing gas fees and improving transaction speed on the Ethereum blockchain. Just for illustration on Arbitrum leverages the DAO concept, DAO is a key component of the network. As highlighted above, DAO is operated by smart contracts and computer code, eradicating the necessity of centralized leadership authority. The management of DAOs is overseen by token holders who engage in the process of making decisions through voting dynamics. Such an autonomous framework helps to promote inclusivity, effectiveness, and transparency within the community.
The key part of DAOs’ functioning is the notion of tokenomics. DAO members hold tokens that stand for their stake within the organization. The quantities of coins determine a person’s voting power, allowing for a decentralized and democratic method of making decisions.
In short, lessons from this model (as explained above) is an indication of the growth of DAOs. Especially, Aragon is emerging as a dominant platform that offers a comprehensive suite of instruments for developing and managing DAOs.
