Shiba Inu (SHIB) was the highlight among the highest valuations of 2021, and now wants to invest in its network. According to the official cryptocurrency-meme blog, the network will have its own Decentralized Autonomous Organization (DAO).
Titled Doggy DAO, this DAO will have two goals. First, reward SHIB users who believe in cryptocurrency. Second, the team highlighted that it has always sought to “work for the decentralization” of the network.
In this sense, the DAO would act as a way to consolidate this decentralization. The first phase will be called DAO 1 (beta) and will empower the community to decide which projects and cryptocurrency pairs will be traded on the decentralized exchange (DEX) ShibaSwap.
There will be a list of ShibaSwap’s “Top 50 Liquidity and Volume Pairs”. With this, each user can cast their important votes on the project in which they are interested. In return, they will receive rewards paid in the BONE token.
“[A] Doggy DAO will be released in a metric and phased, stage-by-stage approach. This will allow the community to understand the project’s needs and requirements, while addressing the possibilities that this ecosystem brings to our community.”
Voting and staking
To vote to list projects, users must do staking (lock) your BONE tokens, getting another token (tBONE). These tokens, in turn, are distributed according to the users’ preference for a given project.
The more tBONE tokens a user staking on a project, the more votes they will get. With these votes, projects will receive allocation points (AP). In short, projects will be competing for users’ votes, which will give users more power.
On the other hand, the voting system introduces a greater amount of incentives. For example, only projects that are actually useful will tend to receive more AP.
Doggy DAO is one more in the series of DAOs that have been discussed over the last week. The topic has resurfaced in recent months after a hiatus of nearly five years. The executed pairs will be displayed for a period of 14 days, and their APs will remain there until the next vote takes place and ends.