Token holders who stake their tokens have a voice in governance. Building an efficient and robust system requires gradual decentralization. In addition to sound governance, stakes help secure a project. Token incentives reward risk-taking, committed lockup time, and action to help govern.
The core team and token holder community relationships can only be symbiotic with good governance. While not part of the core team, it allows those with the most skin in the game to have a say in how the project is run, which is crucial in Web3 projects.
As the DAO gets underway, it will take decisions on topics such as mini-grants to help build a community for in-person and online events. So far, all decisions affecting the project are still made by the core team.
Over time, the DAO begins to take control of decision-making power from the core team. To function, a subDAO may already be formed by part of the core team that submits proposals to the DAO annually, similar to an advisory board at a traditional corporation. It is also possible for the DAO to manage Treasury settings, such as the duration of the "auto stake" setting for Learners.
Once the DAO has been running for several years, it will make all decisions regarding the project.
- 1.Treasury management settings such as monetary policy (issuance inflation) and token distribution split between Stakers, Learners, and Creators
- 2.Business decisions such as what subDAOs/teams to hire to maintain the project and grow the user base