Project Hive Chose To Implement DAO Mechanism

The blockchain and cryptocurrency worlds are constantly developing, assaulting people with new technologies. One of the most notable achievements of blockchain has been the introduction of DAOs — decentralized autonomous organizations. This follows the race of DeFi, yield farming, NFT Development, and, more recently, Metaverse. DAO is a system based on the internet and blockchain technologies, and Smart Contracts are used to automate its core functions. Furthermore, this new term replaces centralized organization and intermediation with a new organization that is highly decentralized, effective, and capable of raising cash collectively. If you want to go a little deeper into the concept of DAO Platform, let’s keep reading!

What Is A DAO Platform?

DAO is the abbreviation of Decentralized Autonomous Organization, an automated and sustainable platform based on open-source codes. DAO was unaffiliated with any specific nation-state or authority in order to be entirely decentralized, instead, it did use the Ethereum network at first. DAO rules and policies are embedded in code and executed using smart contracts, removing the need for a centralized authority. Once the smart contract has been launched on Ethereum, those rules are impossible to change except by a vote. All members have equal power over the DAO, and they can use governance tokens to vote on various rules and adjustments. Their voting power is roughly equivalent to the number of tokens they own. To sum up, DAOs are truly revolutionary, with the potential to fundamentally alter the way organizations are controlled. Grant financing, pool investment, collecting, charitable funds, worker collectives, freelance networks, and other fields have adopted them successfully thus far.

The Core Constituents of DAO

The underlying mechanisms of DAO are different from one project to another, however, there are 3 key stages that any DAO has to undergo. They are Smart Contract Implementation, Token Creation, and DAO deployment.

a. Smart Contract Implementation

DAOs operate with Smart Contracts, which are utilized to identify and encode DAOs’ rules. Smart Contracts will automate the creation of rules and policies as long as a specific criterion is met, such as a stock or commodity price reaching a previously specified level or when a date and time are fulfilled. A well-thought-out smart contract setup is critical to establishing a long-lasting and adaptable DAO. Otherwise, mistakes made at the start of the project can derail the entire project.

b. Token Creation

After developing Smart Contracts, it is essential to create its native token. These tokens will then be used for member voting mechanisms and to incentivize specific activities within the DAO. The following are some examples of activities required to vote on Decentralized Autonomous Organization Platforms:

External expenses incurred or anticipated by the organization
Products to be included on a DAO's roadmap are chosen.
Several protocol enhancements and new technological implementations have been made.

c. DAO Deployment

A sufficient budget is required for the deployment of a DAO. From the time enough funding, DAO’s members with token holders will become stakeholders, who have the right to vote and contribute to the platform’s operation, such as propose changes to the DAO's future work and how its funds should be distributed.

WHICH BENEFITS DOES A DAO PLATFORM OFFER?

HIGH TRANSPARENCY LEVELS: Transparency is one of the many advantages that the DAO platform can provide. Because all activities can be seen and tracked by users, voting, funding, and decision-making can’t be modified. Everything that happens in a DAO is automatically recorded on an immutable and secure blockchain, ensuring the highest level of security for all files.

TRUSTLESS: Because it does not rely on a third party, this platform works dynamically and collectively with the individual interests of its members. Furthermore, everything is done automatically via Smart Contracts, which are in charge of guiding participant behavior and executing automated consensus. As a result, a DAO significantly contributes to optimizing network decision-making and helps reduce management costs.

OPEN-SOURCE: DAO is an open-source platform, which means that its code is publicly available, allowing people to collaborate and improve the platform. Because a global community of IT developers can support them, open-source platforms are far more reliable. As a result of everyone's fair participation and transparency, the DAO's mechanism improves.

WHY PROJECT HIVE CHOSE TO IMPLEMENT A DAO MECHANISM

The initial idea for creating a decentralised autonomous organisation (DAO) was to establish a fully functioning organisation without the frills of the executive order that usually exists in a typical organisation. A DAO can help keep a network safe and optimal without manual intermediaries by its members.

A DAO is an entity with no central leadership. Instead, decisions get made from the bottom-up, governed by a community organised around a specific set of rules enforced on a blockchain.

DAOs differ from traditional organisations where a single leader council plans, committees, and executives make all the decisions. In contrast, a DAO uses a set of rules written in digital code and enforced by a network of computers running shared software. In addition, a DAO is an organisation managed by computer algorithms, so humans don’t have direct control over it.

DAOs operate using smart contracts, chunks of code that automatically execute whenever a criterion is met. Smart contracts are deployed on numerous blockchains nowadays, though Ethereum was the first to use them.

A DAO also ensures user voting rights. By investing in DAO, users will get voting rights that users can use to validate or reject all financing for projects that the organisation will finance in the future.

HIVE GOVERNANCE TOKEN

Project Hive team believe that Governance plays a crucial role in the project’s successful development. And, as a result, Hive Governance Token (HGT) is implemented to empower the community as much as possible.

They wanted to create pure decentralisation in Project Hive, governed by our community. Such an organisation has no hierarchical structure. They can accomplish tasks and grow while being controlled by stakeholders via the HGT token. The lack of a hierarchy means any stakeholder can put forward an innovative idea for the platform’s growth.

One can earn this token to compete with other players in territory wars and the MMR ladder by playing the game.

The person holding the HGT token will get voting rights, which will be changed based on the percentage of the total number of tickets you own, and the tokens allow you to participate in particular events.

They initially start with a minimal number of events for which players could vote within the DAO ecosystem. The scope of the DAO will expand to other areas constantly based on the game development and stabilisation of the in-game economy.

FORESEEING THE FUTURE

They believe the future of any organisation will adopt the DAO mechanism to make the organisation genuinely autonomous and solve the principal-agent dilemma through community governance.

DAOs have gained traction over the last few years and are fully incorporated into many blockchain projects. It has become a clear concept that has been gaining traction. Project Hive is looking to achieve complete decentralisation through the DAO model.

Hive puts together all the pieces it culminates in an autonomous, decentralised, data-driven, and transparent organisation to create a pure game ecosystem. For the benefit of their community.

Final Thoughts

To wrap up, decentralization's core principle has piqued the interest of a wide range of industries and has proven to be a real driving force behind innovation and improved efficiency. DAO platforms will become important in our future society, bringing about better and more equitable management as well as increased transparency.

Join Project Hive Community channels:

Website - https://project-hive.io/

Twitter - https://twitter.com/project_hive_io

Telegram chat - https://t.me/project_hive_chat

Medium - https://project-hive.medium.com/