DAOSYS: Changing the DAO Landscape for Good, Forever
We chose Binance Blockchain Week 2022 in Dubai to debut the next evolutionary step for Decentralized Autonomous Organizations. The Syscoin Foundation is putting forth a new DAO standard that eliminates key issues faced by all DAOs up to now. This model democratizes organizations by incentivizing contributions, eliminating risks, and fostering self-sovereignty. In addition, we are leading by example. The Syscoin Foundation will implement this model in an all-new DAO called DAOSYS, Syscoin’s very own DAO designed to drive growth and incubate innovation for Syscoin and its ecosystem.
What are DAOs? Previously mentioned, DAO stands for Decentralized Autonomous Organization. Simply put, member-owned communities without centralized leadership. This kind of organization is represented by contract-encoded rules that are transparent. Such organizations are controlled by members and not influenced by a central government.
There have been a number of iterations on the DAO concept going back to 2016, but some key architectural issues have persisted among them up to now, particularly in the most important area of self-sovereignty. We have been collaborating behind the scenes with DAO experts and innovators who have contributed their expertise towards this new model that reinvents DAO and eliminates past pitfalls. Anyone who builds a DAO based on this model, or participates in DAOSYS, will benefit from a new way of doing things that is more in line with the fundamental promise of cryptocurrency, self-sovereignty.
This new standard, called Autonomous Service Engine (ASE), serves as a treasury management system that enables DAOSYS to be free from governance tokens. Governance tokens have often been misused to benefit a few who control a treasury to the detriment of the organization and its participants. They also lead to divergence from the protocol’s mission statement.
Our concept for DAOSYS flows from the belief that DAOs should behave more like Automated Market Makers. Basically, everyone should be able to participate in a DAO. DAOs should also provide a two-way street of value between the user and ecosystem, and remain free from a centralized group of treasurers with ulterior motives. The Autonomous Service Engine makes the deployment of a DAO as simple as setting up a liquidity pool. Thanks to the integration of several DeFi components, DAOs based on this model are able to leverage existing markets to fund and carry out their missions using a mechanism that shifts risk away from capital and towards simple opportunity cost. Builders have little to no costs of obtaining capital due to market driven coverage of funding. This effectively creates global financial inclusion and reduces barriers of entry.
As the first-mover, DAOSYS will introduce some amazing new efficiencies for Syscoin Foundation’s treasury management and resource allocation, and nurture incredible growth within our ecosystem while mitigating risk for users who wish to fund or obtain value by participating.
Where are we headed? Beyond the immense benefits this will bring to the Syscoin Platform, we envision that the Autonomous Service Engine will provide the advancements necessary for DAO technology to disrupt for-profit corporate and NGO finance by becoming a go-to driver of innovation.
But what does this mean? Jagdeep Sidhu, Syscoin Foundation President & Syscoin Lead Designer, had the following to say:
This is the greatest financial invention since solving byzantine general consensus and will flip corporate financing on its head.
Syscoin is opening the floodgates to a new way of driving economies and societies by means that are trustless, approachable, and immutable. Bitcoin paved the way as the gold standard of decentralized security. Ethereum advanced blockchain flexibility by introducing programmable smart contracts and decentralized Turing-complete execution. Now Syscoin has combined their strengths and is carrying the mantle forward with innovations like NEVM, DAOSYS, and the imminent implementation of ZK-Rollups followed by Validium. These tools are set to disrupt multiple industries in a way that favors equity and rewards innovation, and it is all occurring on Syscoin.
Syscoin is a decentralized and open-source project founded in 2014 whose NEVM blockchain combines the best of Bitcoin and Ethereum in a single coordinated modular platform.
Syscoin is ushering in the next step in the evolution of blockchain technology, providing Bitcoin's proven security and Ethereum's Turing-complete programmability elevated to true scalability via ZK-Rollups and other Layer 2 technologies.
The project is represented by the nonprofit Syscoin Foundation which is registered in Eindhoven, Netherlands.