This Article will discuss and dissect the wrapped Stake Dao. It will identify the strengths and weaknesses of the initial proposed DAO and also set out the way for people to contribute towards improving the DAO.
Because we are anticipating varying levels of knowledge about crypto from those who read this document we will initially ask a question before starting, If you know what a DAO is already please skip the following paragraph and go staright to the paragraph titled ‘Why Should WSTK use a DAO’
What is a DAO
A DAO is a Decentralised Autonomous Organisation, What that means in basic terms is an organisation which will continue to operate regardless of who is interacting with it, it cannot be shut down, and it exists beyond the boundaries of country lines or laws. In this instance the DAO is the group of processes which will decide upon certain aspects of the WSTK project such as who can JOIN its vault.
Why should WSTK use a DAO
WSTK is using a DAO for 2 main reasons, Firstly because we believe that WSTK can come to more informed decisions about strategic partnerships and the best projects to integrate moving forward if those decisions are not made purely by the incumbents (the core team), furthermore, having a DAO allows people to place their value into WSTK and become DAO council members, this is a position that we can use to incentivise strategic partnerships with companies and individuals, once they are a DAO member they will be best placed to lend their expertise to the project and to help shape its future direction. Secondly running VIA a DAO closes the door to corruption and crony capitalism, as no single person will have absolute power it will be highly unlikely that any proof of stake project will become intergrated within WSTK without the proper robust and technical discussion. This is very important to chosing good integrations moving forward.
Who will be present within the DAO
The DAO will contain representatives from within the WSTK ecosystem. That means that major exchanges, or use cases for WSTK will each have a single representative which may be a person or their entire team, then we will also allow spaces on the DAO for People who represent integrated projects, for example PIVX and QTUM will both have a single DAO member each who can vote on certain issues. Appointing new members to the DAO will be done by the existing members voting on the proposal, once a New project is integrated a DAO position will be given to it, this can be occupied by a single person or their core team. The DAO members also will have the ability to remove a member, and they will do this if a certain member becomes inactive over a long period of time, or if they feel that a certain currency has become too volatile or needs to be removed. The WSTK core team will also have seats on the DAO and will NOT be able to overule the DAO’s decisions.
What will the DAO actually DO
The DAO will be responsible for one main task, it will be responsible for adding and removing assets from the Staking pool, this will be done to help with the stability and mitigate the volatility of the wSTK rewards. The DAO members will take a vote on whether or not to add a currency to the Vault and if there is a certain majority then the currency will be added, the same will apply to removing a currency.
Where to find out more
If you would like to find out more about WSTK please head over to our website, wrappedstake.io and sign up for Cryptosi’s mailing list for regular updates and special offers.
Thankyou for reading