BusyDAO — An Evolution in DeFi
Blockchain networks are meant to be anonymous but did we ever wonder about a situation when something goes wrong? How can we ascertain that the network always takes the best possible actions? Fortunately, blockchain developers have debated about such a foreseeable situation for quite some time and as a result, they have incorporated governance into a network’s core foundation. The community members’ decisions are enforced with the help of a Decentralized Autonomous Organization, or a DAO. MakerDAO, Aragon, MolochDao, MetaCartel, GitCoin, etc are few of the reputed projects implementing DAO and BusyDAO is a recent addition in the same category.
What is a DAO?
A DAO is built with smart contracts that are essentially automated with if-then statements. If blockchain technology acts as the future of app development, DAO’s can easily be referred to as the future of digital communities behind those apps.
It is important to note that each smart contract is a fixed rule that is built into the network’s core, which mainly concentrates on automating tasks. Tasks like the transfer of value or change in permissions are completely automated. However, we should also know that it is not possible for a DAO to automate everything.
For an instance, if a change in protocol is necessary, the network can’t implement it into itself. It might also not realize that something is wrong. Here’s where the governing community comes to play. A group of dedicated users votes on any changes based on the amount of money they invest or stake into the network in contrast to one leader, like a President, making decisions. Therefore, the users here have equally important roles while making decisions, creating a community council of sorts. Furthermore, the investors receive interest on the basis of their participation. This helps to create an incentive for them.
Thus, we can ascertain that the people who have a major portion of their money at stake would strive to do whatever it takes for the success of the network. And as long as they stake money in, the DAO can continue with its work, and the network can run successfully. Furthermore, it is not to mention that the lack of a central party would mean no additional fees for participating.
Platforms similar to Upwork, Fiverr, Freelancer, TopTal, etc accumulate 20% of funds from freelancers. This can be considered as a service fee for using their platform. However, when it comes to a DAO-run network, the freelancers can hope for getting around 100% of their earnings. The community could also vote for other accessibility policies to attract more freelancers going forward.
DAO Moderates Online Communities, But How?
The fact that anyone from all across the globe can participate in a DAO-run network is a thing that distinguishes it. Furthermore, it is also important to note here that time and language barriers do not matter and the only requirement is to stake funds. These factors make up a fantastic foundation for building a community.
We can consider an online game for example. If a single aspect of the game is not balanced right, the users can vote to correct it. Here, the people who have been playing the game for a long time, or in other words those who are long-time stakers, will be respected by everyone in the community. Any input from them would therefore have a great weight, and the whole community would look up to these players. However, when it comes to this change, even smaller stakes would be considered equally valuable. Therefore, a smart contract would hold back an update that isn’t supported with a considerable number of votes. Nobody can change this functionality.
Discussing and voting on various changes would build a sense of community, it is believed, over time. These players are not only playing together but shaping the game according to them. No company would disapprove of their changes or try to subdue the opinions of the users. The participants will decide everything.
What is BusyDAO?
Busy DAO is a unique example that is leveraging blockchain technology in multiple cases. It can be defined as a decentralized distributed solution that will help build a decentralized platform for freelancers. The web 3.0 engine will be advantageous to everyone who can then take advantage of smart contracts to safeguard the interests of everyone involved. For example, if it is a freelancer and client relationship, the client would establish a smart contract with the project’s requirements and proceed to upload money into escrow. If you are wondering about how the money will be released then know that it will be possible only if the freelancer delivers based on requirements and timeline.
Busy technology is based on advanced blockchain solutions. It uses its own proof of stake consensus, where it randomly selects users who verify the authenticity of blocks. The process is near instantaneous and the data is immediately written on the blocks.
This process involves a considerably high level of security, thereby preventing what we call double-spending. It also contributes to the overall decentralization because each active user is a part of the network. These features ensure the high throughput, stability and security of the entire network.
BusyDAO an improvement on DeFi model!
Up until now, DeFi projects have been criticized for the higher amount of centralization, than the markets themselves. Without delving deeper in this line of discussion it is safer to say that large DeFi projects utilize traditional company structures to operate and have relatively lesser transparency. DeFi’s have shown a glimpse of the possibilities of automating financial services and BusyDAO is a step further in this direction, which plans to capture the upside from any products they created or funding through dividends and/or profit sharing. It aims to be one of the first community-created DeFi products and an anomaly in the DeFi market which is heavily influenced by venture funding.
Conclusion
In the coming months, many such DAOs might try to follow on the footsteps of BusyDAO, but its highly unlikely that any would gain much significant traction without a strong business model backing the project. But its likely that we might see an increasingly significant traction for DAOs and a big surge in interest, leading to the next big innovation and craze like the good old ICOs heyday in 2017. But be sure to be on the lookout for a new wave of DAO’s heralded by BusyDAO.
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Twitter: https://twitter.com/Busy_Technology
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LinkedIn: https://www.linkedin.com/company/busy-technology
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