Developers of Shiba Inu (SHIB) have released the first iteration of Doggy DAO announced. Doggy DAO is a decentralized autonomous organization. It aims to transfer control of the project’s ShibaSwap DEX to the meme coin community.
More power to the Shiba Inu community
DAO 1 will allow the Shiba Inu community to vote on which crypto projects will be added to ShibaSwap’s liquidity pools. Also, DAO 1 will determine how rewards in the DEX’s BONE governance token will be distributed. Moderator Queenie, from ShibaSwap, explained the following from:
“DAO 1 was created because we believe in reducing the level of accountability our team has to each other. It deprives us of the ability to exercise authority and control over certain areas; it’s about making it more decentralized.”
DOGGY DAO is here. Woof!https://t.co/5sEZX50Z1j
— Shib (@Shibtoken) December 31, 2021
According to Queenie, DAO 1 is focused on “giving direct power to the community”. DAO 1 does this by allowing them to vote on which crypto projects will appear in ShibaSwap’s liquidity pools.
This is how the DAOs work
Thus, with the arrival of DAO 1, ShibaSwap users will be able to vote on which projects are added. They do this by staking their BONE tokens to get tBONE. The tBONE is the staked form of the governance token. The more votes a project gets, the bigger its allocation points.
Since this is a beta version, the ShibaSwap team will ask the Shiba Inu community for feedback. Queenie explained the following:
“The first phase will technically be considered a beta phase. It is, however, much more developed than what you would normally consider a beta. We just want to be able to get the feedback from the community. This way we can make sure things go as intended.”
A subsequent DAO 2 launch will add more complexity to the system. The cause is the presence of “enhanced use cases of BONE/tBONE tokens.” DAO 2 will allow community members to “make generic proposals.” According to Queenie. The DAOs will be reviewed by the ShibaSwap multisig team.
Limiting influence of whales and exchanges
A new strike contract will also be launched. This would lock BONE for an extended period of time before voting begins. The purpose of this is to limit the influence of whales and exchanges on voting.
The announcement does not seem to have moved the Shiba Inu price, if at all. The coin is up a modest 0.6% in the last day, but has fallen 11.3% in the past seven days due to the crypto market’s fall after Christmas.
That didn’t dampen the enthusiasm of the ShibaSwap team. In their DAO announcement, they also teased a “big surprise” that is coming soon.