What is a D.A.O?
Whatever your degree of interest in Web3 is, you must have heard this word somewhere a few times… And for that reason, DAOs could become the cornerstone of the new era of decentralization suggested by blockchain-based innovations. So now let’s dive deeper into these Decentralized Autonomous Organizations!
A DAO might be thought of as a thing, a group, or a society whose governing principles are computerized and indelible recorded in the blockchain. In other words, it’s a noncorrupt organization with open rules that is owned by the people and run by the individuals who contributed to its founding or funding. Smart contracts have automated this process, making it secure, open, and completely decentralized because its governance cannot belong to any centralized organization or physical person.
Presentation of Mobula.fi
Mobula.fi is the perfect example of a Protocol DAO use-case.
This served as the catalyst for the development of Mobula. The need for consumers and builders to have complete access to trustworthy crypto-asset data in a fast and interest-free manner.
Mobula is the decentralized version of CoinMarketCap, which will enable you to list and gather data on any token in a decentralized way. This implies that any member of our small community will be able to submit or validate new token listings and the information related to them! The community will control the dApp and decide which tokens may or cannot be posted on Mobula, which will then automatically acquire the required data via APIs. And guess what? To do this we’re using a… DAO!
This is related to the origins of web3 and the prevailing cultural movement… People aspire to have more authority, security, and control. Blockchain introduced decentralization to these wills, giving people a practical way to handle (mainly financial at first) independent of centralized power or traditional governments.That’s why you always hear about web3 community power and all those things… The demand for stronger governance among the populace is where it all began! To be confident in what they use and purchase, to feel protected and engaged… Just think of ancient Greek Democracy. Imagine being a part of a group that influences the development of a product you adore… that your opinion mattered just as much as anyone else’s over, regardless of the employees… And that you may even vote to include or reject other community members? That’s exactly what we propose with Mobula’s DAO!
And if you comprehended this, you comprehended the nature of governing. Web3 for the people, controlled by the people! Any Mobula member will have the power to rule according to the value of his $MOBL shares. This will allow voting, and create proposals about Mobula’s evolution, that will be discussed and voted on by the community. Holders will be able to vote on requests to list new tokens on our data aggregator through a second, protocol-linked DAO. To that extent, the community will be consulted before any Mobula-related decisions are made. And guess what? When holders are seen to be performing, they will be compensated for their efforts!
To participate in a DAO, all one needs to do is purchase the project’s native token. As previously stated, the number of tokens you own directly correlates to your authority (importance) in the DAO’s decisions. You’ll profit if the price of the token rises, just like shares in a large corporation. But contrary to a “classic” company, a DAO has no direct commission to ensure the decisions are correctly implemented.
Smart contracts guarantee and automate all of this, therefore it’s crucial to ensure they were properly constructed by, for example, conducting audits (hello, Safetin 👋)… Aave, MakerDAO, and Uniswap are some famous DAO-based protocols. Anyone with a token can submit an anonymous suggestion for the protocol even in such well-known and significant DAOs. Governance by the people 🙂
But DAOs continue to be developing applications of a concept pioneer… In particular, because DAOs are controlled by lines of code, they continue to be vulnerable to sophisticated security issues and cyberattacks. Since anyone can access the company’s developing technologies, the open-source feature might potentially be seen as a drawback. DAOs remain highly attractive in the hopes that these difficulties will be resolved because they may help to resolve all the centralization-related issues that DeFi aims to avoid. For instance, with Mobula, on-chain applications are not accessible, centralized servers are vulnerable, and data dependability is dubious.
This is why it appeared important to create a decentralized data aggregator. A unified community will be responsible for data collection and processing, and will be rewarded for efficiency with our token $MOBL!