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How important is it to have Community-Driven Governance for a project?

Published 01/19/2022, 09:20 AM
Updated 01/19/2022, 09:30 AM
How important is it to have Community-Driven Governance for a project?

  • Decentralization keeps fairness and engagement between a project and the community.
  • DAO is independent from a centralized entity.
  • In DAO, members of the community vote for future decisions.

Decentralization is one of the core foundations of cryptocurrency. It acts as strong leverage that attracts the general public towards the industry over the traditional financial systems. In a nutshell, decentralization maintains fairness and engagement between the project and the community regarding future decisions of the project.

This scale of decentralization is implemented by a decentralized autonomous organization or DAO. In detail, DAO is an organization intended to be automated and decentralized. Without the usual management structure, it also serves as a venture capital fund that is based on an open-source code.

With its independence from any centralized entity, DAO preserves its decentralized quality. To add, DAOs were designed to remove human error and manipulation by designating the decision-making power to the members of the organization. All must vote for a resolution to be implemented, which gives the community a degree of control over their future.

At present, DAOs are mainly used for investments, fundraising, charity, buying and borrowing NFTs, etc. Meanwhile, a new platform was introduced that displays exciting utilities of a decentralized autonomous organization–Asgard DAO. It is a new category-defining asset class that utilizes hedging to let smart investors build their world.

As a multi-dimensional project, Asgard offers a new class asset token that can be a part of any kind of portfolio while being used to hedge risky assets. As a result, it can offer better incentives than stablecoins.

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Furthermore, Asgard DAO leverages Snapshot to facilitate the voting process. A decentralized voting system, Snapshot provides a flexible calculation for voting power. Here, users can effortlessly create proposals and vote in a user-friendly and gas-fee-free platform.

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