Crowdfunding with voting rights — A killer feature of the Decred DAO

  1. An online Treasury where people can donate into a pool. Control of this address would be governed by the crowd (via a smart contracts based voting system — see point 2).
  2. A governance system where people who pay into a shared pool get a voting ticket. The number of tickets and voting power is proportional to stakeholders’ skin in the game.
  3. A proposal system which allows people to submit ideas to be sponsored by the treasury.
  4. A reserve currency in which the treasury is denominated. This currency should ideally be inflation proof and easily interoperable with other currencies, so that the funds are not easily devalued, and stakeholders have optionality when disbursing funds.
  5. A contractor management system where approved workers can submit expenses to the treasury. Invoices are approved by stakeholders (or a delegated group).
  • Decred already has a treasury controlled by smart contracts, and a proposal system (Politeia) where people can submit proposals. With a decentralized architecture, you would be able to spin up new treasuries with their own proposal systems.
  • Decred already has an inflation proof currency ($DCR), which would act as the reserve asset to be used for community treasury pools. Using the Decrediton wallet and a built in Decentralized Exchange, the crowdfunded $DCR funds can be converted into a medium of exchange (such as stablecoins $USDC and $USDT) in order to spend them.
  • Decred also has a Contractor Management System where approved workers can submit expenses to the treasury.

Consider this use case: Donations and disaster relief.

  1. People don’t trust the middlemen collecting donations (lack of transparency)
  2. People don’t have a say in how crowdfunded donations will be allocated (lack of voice in treasury management)
  • Charity X spins up a donation address to receive $DCR
  • People donate to treasury address using $DCR, and get a voting ticket proportionate to their skin in the game.
  • People can post proposals on Politeia for allocating the money, and stakeholders can vote on them.
  • Money is disbursed via currency $DCR (Lightning Network) or an ERC stablecoin (e.g. USDT / USDC).
  • Bonus: On the ground workers can use the Decred Contractor Management System to invoice the treasury by showing proof of work, and invoices can be approved by the treasury stakeholders

DAOs are the future of crowdfunding.

  • In 2017, $ETH mooned because it was used to launch ICOs.
  • In 2018, $BNB mooned because it was used to launch IEOs.
  • In the future, $DCR will moon because it will be used to enable crowdfunding and DAOs.

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Ammarooni

Ammarooni

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Technology, Media, and Crypto. I have some thoughts on a few things.