The evolution of the Internet has brought us to Web 3.0, the decentralized web where users are in control of their data and content. Here, users build applications for other users to interact with and have a share in its success.
In this decentralized world, users have become an integral part of a project through DAOs or Decentralized Autonomous Organizations.
DAOs are a way of democratizing the management of a business or project. With a focus on decentralization and community, DAOs enable their members to shape the future of the project by granting them voting power through tokens.
Uniswap is seen as one of the most successful applications of a DAO. Uniswap DAO allows UNI token holders to share proposals and vote on them to shape the largest DEX’s future. Another successful example of DAO is ConstitutionDAO, which in 2021 raised over $40 million from 17,000 contributors in under a week in a failed bid for a rare copy of the U.S. Constitution.
Given the significance of DAOs in Web3 in terms of enabling distributed ownership and decentralized governance, we need an effortless way to create DAOs.
DeXe Protocol: A Gateway to Next-Gen Governance
While there has been a growing interest in DAOs, the sector continues to face challenges ranging from ownership-based governance models leading to plutocracy, incentive imbalance, low activity, and a lack of decentralized treasury management tools and comprehensive infrastructure.
This is where the DeXe Protocol comes into the picture. Designed to enable wider participation in ecosystem governance, DeXe represents a gateway to next-gen governance.
DeXe actually provides an innovative infrastructure for creating and steering DAOs. Already, the protocol, which has undergone six audits to ensure the highest-level of security, ranks among the top nine DAOs by TVL in treasury and is the biggest on the BNB Chain. DeXe is also the only existing solution for L2 blockchain decentralized governance and plans to expand to Layer 2s as Infra-as-a-Service soon.
Unlocking DAO Potential with DeXe
DeXe offers a top-notch, one-stop-shop builder to launch open-source and scalable DAOs.
By utilizing DeXe’s unique and comprehensive infrastructure, developers can build efficient projects governed by community members. These DAOs can be created with highly flexible settings, specifying different rules for various kinds of proposals and other governance activities. On top of it, the DAO can be governed via fungible tokens, NFTs, SBTs, or a combination of them.
Moreover, projects can easily create an audited governance utility token with no code and launch an advanced sale through its simple interface. The process can further be customized with different rounds, each with different prices, vesting, cliffs, and whitelists.
Projects can further achieve autonomous and decentralized treasury management in addition to having the ability to connect their Treasury with any DeFi protocol.
While tokens and treasury are important to a DAO, the core element is community participation, and the higher it is, the greater the transparency and stronger the governance. DeXe stands out here for its ability to enhance engagement and decision-making by implementing a unique incentivization system.
This system includes the ease of setting up different types of rewards for the community — transaction execution rewards, voting rewards for participating in a proposal vote, and proposal creation rewards to encourage members to take the initiative but only for those that get accepted.
For quality decision-making, DeXe allows members to delegate their governance token and in effect decision-making power to other DAO members or experts. Token owners maintain their ownership during this delegation and are free to withdraw them at any moment even during active voting. At the same time, delegators are incentivized with 20% of the fee, so it’s a win-win situation for all. Now, to discourage token delegation to a single expert, the more tokens an expert holds, the fewer rewards are paid out for each token.
Projects themselves can delegate tokens from the treasury to attract authoritative and competent parties, a feature meant to be an integral component of next-generation DAOs for its ability to significantly increase the base quorums for decision-making.
A Bold Vision for DAO Innovation
As we saw above, DeXe is emerging as the next era of DAOs with its powerful tools. With DeXe, the possibilities are simply endless. The protocol infuses a new breath of innovation and truly decentralized management in Web3.
Projects not only can build multifunctional DAOs here but leverage advanced governance logic in addition to stake, store, and manage crypto assets used for on-chain governance.
The ability to build rewarding models for expert delegation certainly makes it beneficial for new projects. By utilizing DeXe they can actually create meritocratic voting models with custom logic and math.
In contrast to the current voting model, which fails to recognize the expertise or knowledge levels of the participants and concentrates power in the hands of a few, DeXe Protocol’s model pursues a more balanced and resilient system.
Overall, with these unique and effective features, DeXe aims to provide a truly useful platform for all the existing and upcoming DAOs to be more effective, fair, and transparent.
Paving the Future
With its big dreams and bold ambitions, DeXe has been off to a great start. As we noted above, the protocol has been receiving a lot of attention and capital.
Recently, BOXY utilized the DeXe Protocol to launch its DAO successfully. BOXY is a DAO-managed memecoin project that sold out its tokens within a minute. Having sold its entire supply, $BOXY has fully transitioned into a community-owned and managed memecoin project.
This is just the beginning, though. Given DeXe’s vast capabilities in terms of flexible DAO creation, advanced governance logic, meritocratic delegation, integrated management tools, decentralized treasury management, custom proposals, and multilayer governance structures, the protocol can find diverse applications in the Web3 sector.
From building robust DAOs, raising funds, and incentivizing participation to managing treasury funds, enabling collaboration, and building tokenized communities, the sky’s the limit with DeXe.
So, as the popularity and adoption of crypto and Web3 continue to rise, DAOs are bound to play a critical role in shaping the future of the digital world. And through DeXe, projects can create a DAO with ease and effectively govern it in one place.
