1. Introduction
DAism inherits the governance principles from Bitcoin's proof-of-work and Ethereum's proof-of-stake. The original governance consensus introduced by DAism is known as Proof of Value (PoV).
Last updated
DAism inherits the governance principles from Bitcoin's proof-of-work and Ethereum's proof-of-stake. The original governance consensus introduced by DAism is known as Proof of Value (PoV).
Last updated
DAism is a public governance layer of dApps and tokenomics . And the unique governance consensus introduced by DAism is Proof of Value (PoV) .
Proof of Value (PoV) is DAism's original consensu for the governance of Tokenomics and dApps.
DAism's proof-of-value inherits the governance principles from Bitcoin's proof-of-work (and Ethereum's proof-of-stake):
Bitcoin's proof-of-work is driven by rewards, utilizing valuable labor to produce a reliable ledger as a collaborative task. Similarly, DAism's proof-of-value is reward-driven, with the core mission of fostering dApp development, aiming to generate valuable dApps and nurturing Good Tokenomics.
If you've developed a dApp and are willing to embrace DAism's Proof of Value governance, you can mint a Smart Commons on DAism with this dApp in just one minute. Subsequently, if your dApp proves its value, you can continuously receive rewards. Yes, the rewards provided by PoV are lifelong!
The introduction of Proof of Value signifies that, like Bitcoin and Ethereum, DAism is committed to cultivating a governance model that goes beyond traditional paradigms, laying the groundwork for a vibrant and sustainable decentralized ecosystem.
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Blockchain, originating from the underlying consensus and token technology of Bitcoin, has proven to be a great governance mechanism with its proof-of-work consensus.
Representing Blockchain 2.0, Ethereum initially chose to transition from proof-of-work to proof-of-stake (PoS). Proof-of-stake has proven to enhance Ethereum's capability to deploy and operate dApps (smart contracts). It achieves features such as permissionlessness, composability, anti-censorship, and trustless trust.
However, since the explosive growth of dApps in 2017, the industry has struggled to find effective governance strategies for dApps. Additionally, tokenomics have almost become synonymous with scams and bubbles.
In the spring of 2019, DAism started from the governance of decentralized exchange and, through years of technical exploration, finally developed Proof of Value (PoV). This innovation serves as a foundation for effective governance of tokenomics and dApps.
After a decade of exploration, blockchain has demonstrated the tremendous power of fundamental values such as decentralization, anti-censorship, trustless trust, and anonymity through the hardcore development of tokens and smart contracts. However, these achievements have mostly been confined to the public blockchain layer rather than the application layer.
Some may recall the early promotional language of Bitcoin, often emphasizing the statement "Bitcoin is anonymous" – you can still find this on bitcoin.org. Unfortunately, over time, some people, fearing the tyranny of a centralized world on one hand and unwilling to relinquish their own power on the other, quietly "erased" the memory of this core feature of blockchain.
To this day, no one has been able to prove that Satoshi Nakamoto mined a total of 1,125,150 BTC. The anonymity of Bitcoin prevails!
Ethereum has gone even further by dividing accounts into two types: Externally Owned Account (EOA) and Contract Account (CA). In simple terms, EOAs are for human use, while CAs are exclusively for smart contracts. The addresses of these two types of accounts are indistinguishable to the naked eye.
Furthermore, since 2017, Ethereum's founder, Vitalik Buterin, has been continuously exploring Account Abstraction. This initiative aims to enhance the role of CA, allowing it to pay transaction fees and trigger transaction execution just like EOA. In other words, without human intervention, dApps can initiate operations autonomously based on external conditions, including actively interacting with other contracts! This proposal greatly enhances the possibilities to isolate blockchain applications from human control.
In a human being's society, we have to tolerate this bug but in a blockchain-driven world we are able to eliminate falsification and censorship.
On November 28 2020, Fred Ehrsam, co-founder of Coinbase and Paradigm, and Dan Robinson published "Governance Minimization" in which there're some key points relating to the topic we're discussing here:
What is credible neutrality? Credible neutrality is dependability. It means a stakeholder (e.g a user or a developer) can use or build on a protocol with confidence that it will not evolve against their interests. Protocols remain credibly neutral by avoiding being "kidnapped" by any particular group.
Credible neutrality is a primary value proposition in today's crypto community. It secures values sticked to a platform and protects both concrete (funds) and abstract (development time, users) elements from being extracted, shutdown, and restricted.
Minimization of governance means reducing the power and reliance on governance wherever possible. Minimization of governance is important because it supports the primary value proposition of protocols: credible neutrality. Minimizing governance tends to make protocols more credibly neutral.
Governance minimized protocols will see the most popular use.
It is a core attribute which kicks off a positive feedback loop between trust and adoption as a standard. It also puts powerful, basic tools in the hands of all creators, generating more opportunities and faster progress for the entire crypto ecosystem.
Do we still remember a frequently discussed topic about Bitcoin's features in its early years---"Trustless"? Essentially only when a system or a dApp is credibly neutural can it be trustless! Therefore, no matter how decentralized a project's governance seems if it lacks credible neuturality the project can hardly survive in the long term in a blockchain ecosystem. The only way to credible neuturality is minimization of governance like what Bancor has accomplished by implementing a price-discovery mechanism with smart contracts and algorithms.
Smart Commons = dApp + PoV's governance Smart commons are dApps under the governance of DAism. Each of them is minted under SC0 with a specific dApp. DAism's Proof of Value is the guarantee for effective governance of Smart Commons. The value of dApp is the foundation of Smart Commons. In DAism's well-constructed tokenomics, the exclusive valuation token becomes the value assessment indicator for dApps.
Following the principles of governance minimization and credible neutrality, aiming for exceptionally high user-friendliness and stability. Hardly any dApp will be isolated in the future. Each dApp can intelligently respond to interaction requests from other dApps and initiate interaction requests to other dApps based on its intelligence. To build a secure, stable, and highly efficient industry on the foundation of these distinctive features, each dApp clearly cannot be inconsistent, capricious, or undergo arbitrary changes. This is to maintain friendliness and stability towards users and external contracts.
DAism, based on its original Proof of Value (PoV), establishes Good Tokenomics and perpetual reward ,and drives the development of decentralized applications (dApps).
Good Tokenomics DAism, through innovations in pricing metrics, introduces a reasonable decentralized exchange network known as the IADD Network. The transparency of smart contracts in the IADD Network transforms it into a value-oriented investment market, characterized by fairness and equity.
Through the governance of two major protocols regarding the issuance of valuation tokens and liquidity pool supply, DAism ensures that all Smart Commons maintain impeccable financial practices.
Incentive-Driven Approach Each valuation token transaction incurs a 2% transaction fee, which is then rewarded to the respective Smart Common's developers. This incentive-driven mechanism encourages the transformation of all dApps into Smart Commons/Public Goods.
Transforming dApps into Smart Commons Minting on DAism signifies developers voluntarily converting their developed dApps into Smart Commons. This proposal(espcially its sub-protocol SC0) aligns with DAism's commitment to fostering a public and collaborative ecosystem.
