dxDAO Goes Live, Boost to DutchX Governance
dxDAO, a community run organization that’s in total control of the DutchX Protocol went live and will attempt to create a ‘super-scalable’ organization through systematic consensus, May 31, 2019. DutchX is a decentralized protocol that allows users to transact in any two tokens in a completely on-chain process.
DAO’s and Ethereum Governance
dxDAO is a completely community run organization where users can stake ETH or any ERC-20 coin to gain a proportional share of voting power on the network. It is capable of scaling the DutchX Protocol massively, limited only by Ethereum’s scaling constraints which are likely to be resolved with ETH 2.0.
The DutchX protocol is a layered component on top of Ethereum that allows the exchange of tokens. Unlike other exchange mechanisms, it works fully on-chain and is resilient to front-running and order collusion. The core of DutchX’s design is an auction mechanism that finds a reliable price even for tokens that are not very liquid.
Leading projects on Ethereum’s DeFi ecosystem like MakerDAO require a mechanism to execute larger orders and a reliable price feed for real time market data. They currently rely on centralized processes to capture these requirements, but DutchX’s implementation means that these dApps now have a way to execute this in a decentralized manner.
In the last six months, DutchX has facilitated 1000 auctions, resulting in nearly 10,000 transactions; smart contracts deployed on DutchX do not have an owner, making them immutable. dxDAO’s main objective is to create a system with a large number of stakeholders to make sure there is no power concentration and that consensus is carried out in a truly decentralized and community driven way.
Stigma Around DAO’s Fading
After the June 2016 Ethereum DAO incident, the term was surrounded by stigma and those who still considered it a viable governance vehicle were ridiculed. Three years on, DAO’s are back in action with MolochDAO, Slock.it, and a number of others opting to delegate their decision making to a decentralized organization.
Governance is the most important part of any distributed network as it disperses control and power in the system, and allows for minnows to be an active part of the community. While there is a certain degree of skepticism regarding the resurgence of DAO’s, it shouldn’t be ruled as a functional option based on one major incident.