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Blockchain Technology has revolutionized the way we think about transactions, decentralization, and security. One of the most compelling aspects of this technology is the ability to build trust and transparency in an inherently decentralized manner. The new DAOFIN-A DAO for XDC Network is seen as a game-changing plan for the DAOs in the blockchain industry with its involvement in making the DAO as decentralized as possible with the community's suggestions. It represents a community-driven approach to XDC Network blockchain technology.
The distinct advantage of governing bodies like the Ethereum Foundation is that they can make well-informed decisions based on in-depth knowledge of the relevant fields and carefully consider their strategic priorities. Small panels of experts and community leaders evaluate proposals for these bodies. They fall short of the democratic standards required for decentralization due to their lack of openness and the limited number of participants.
For blockchain network governance, the DAOFIN framework is a game-changer. DAOs will dominate decentralized governance in the future, and the DAOFIN architecture will serve as the benchmark for other blockchain networks.
As the needs of the XDC Network ecosystem change, the DAOFIN architecture is intended to be a scalable, adaptable solution. A decentralized group of XDC Network stakeholders will run the DAOFIN framework, and they will be able to vote on and contribute ideas for growing and maintaining the ecosystem of the network. The DAOFIN framework's introduction is only the most recent in a string of advancements for the XDC Network, whose ecosystem and use cases have been multiplying.
Important factors of DAOFIN.
- Every Year, 250M XDC unlocks to support the network from the ecosystem pool. 90M XDC will be set aside for core protocol development & support. However, the rest, 160M XDC, will be released quarterly, in tranches of 40M, to fund projects deemed worthy of approval by the community. In the future, the unlocked funds will be distributed with the advice and guidance of the community in an increasingly decentralized, democratic way.
- The XDC community grants DAO—DaoFin will solicit grant proposals from entrepreneurs, developers, innovators, and community members.
- DaoFin relies on a system of divided government or checks and balances to limit the risk of manipulation, all the while rewarding large stakeholders with their fair share of governance and incorporating a deliberative body, ultimately responsible to the community, to ensure that the process remains sufficiently thoughtful, diligent, and rules-based throughout.
- DAOFIN will be run by the three main branches or governing bodies of government, namely The XDC community/Holder, 250+ masternode (Holders) Senate, and The Judiciary (Governance) Committee. Voters will be able to stake 100,000, 250,000, 500,000, or 1,000,000 XDC in the governance pool. XDC staked in the governance pool will eventually earn rewards proportional to the stake paid out from the ecosystem development fund.
- Election Week: The last week of each fiscal quarter will be "election week" (Fully On-Chain), during which the community will vote on submitted bounty proposals that will encourage healthy competition and more suitable options for the betterment of the XDC Network.
- To provide complete transparency, the Judicial Committee will annually issue a report that compiles all approved grant applications, including all on-chain data that can be used to monitor funds from beginning to end and includes vote totals for all three branches of the DAO government.
The DAOFIN plan is available for public evaluation. There will be a 30-day public and community comment process starting on February 15, when members of the community can express their support for and opposition to the DAOFIN initiative. The early XDC Network community will have 30 days to make necessary revisions to the plan following the conclusion of the public comment session on March 15 before releasing a final copy to the community. Such an initiative to include the community members in each part of the critical development at the core level of the network, XDC Network has proved itself as a blockchain network by the people for the people.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.