Shiba Inu Developers (SHIB) announced the first version of Doggy DAO, an autonomous decentralized organization (DAO) that aims to hand over control of the ShibaSwap DEX project to the meme currency community.
DAO 1, released on Friday (31) in beta, will allow the Shiba Inu community to vote on which crypto projects and peers will be added to ShibaSwap’s WOOF liquidity pools. As a reward, the DEX BONE governance token will be distributed to participants.
“It came about because we believe in reducing the level of responsibility our team must place on each other,” explained Queenie, ShibaSwap’s server moderator at Discord, during a recent AMA no Twitter Spaces. “This prevents us from exercising authority and control over certain areas; it is about making them more decentralized”.
DAO 1, said Queenie, is focused on “giving immediate power to the community,” allowing them to vote on which cryptocurrencies will be part of ShibaSwap’s liquidity pools.
give the dog a bone
With the arrival of DAO 1, users of ShibaSwap will be able to vote on which projects will be listed by staking their BONE tokens to get tBONE, the governance token in their stake form.
The more votes a project receives, the higher its allocation points (AP) — the measure of how many BONE rewards are allocated to the pool. A maximum of 30 community voted pairs will be executed, with a new batch of pairs decided every two weeks.
As this is a beta release, the ShibaSwap team will be soliciting feedback from the Shiba Inu community. “The first phase will technically be considered a beta phase, but much more developed than you would normally consider a beta,” explained Queenie. “We just want to get feedback from the community to make sure everything goes according to plan.”
A subsequent release of DAO 2 will add “more complexity” to the system through “enhanced use cases of BONE/tBONE tokens”. DAO 2 will allow community members to make “generic proposals,” explained Queenie, which will be reviewed by the ShibaSwap team.
A new staking contract will be released with DAO 1, forcing BONE to be locked for a long period of time before voting starts; the aim is to mitigate the influence of whales and exchanges on voting.
The announcement does not appear to have changed the price of SHIB, which rose a modest 1.7% the day before but fell 11.3% in the past seven days as a result of the slump in the postnatal crypto market.
That didn’t dampen the ShibaSwap team’s enthusiasm. In their announcement about the release of DAO, they also promised that a “big surprise” will arrive soon.