A Decentralized Autonomous Organization (DAO) seeks to handle governance problems in various sectors. Smart contracts and blockchain act as governance technologies with the ability to promote higher levels of transparency. DAOs are created to help minimize existing principle-agent problems of organizations and companies’ moral hazards. In the absence of third parties, tokens of distributed networks seek to provide incentives to align organization interests automatically.
- Attracting and Incentivizing Contributors
- DAOs incentivizes contributors and users on the platform by giving them a say in an organization’s operations not just in the present time but also in the organization’s future.
- Pooling Funds
- DAOs implement the use of cryptocurrencies which allows people from any part of the globe to pool funds.
- Govern Funds
- DAOs allow users on a platform to channel funds towards a common mission collaboratively.
DAO decentralization use cases aim to improve the Work Quest ecosystem. The functions vary from simple to complex actions. These actions include:
- Addition of new platform features
- Improving the available business model
- Changing methods on how to use an asset
- Changing a market model
- Changing asset support factors
The Work Quest token’s primary function is governance over the platform protocol and the platform’s accumulated funds. The token’s utility is also its position as a potential revenue share.
The governance contract allows a switch, enabling token holders to earn part of the protocol’s fee when turned on. After the switch approval, there is a time lock that gives liquidity providers and investors time to prepare for the shift to a possible new revenue sharing model in the event it occurs.
Work Quest DAO transition to community governance is going to be gradual as well as follow the principle of increasing decentralization. Work Quest decentralization process allows for the distribution of actions and decision-making processes to get away from a central, authoritative group. All token holders have the right to vote towards a suggestion. The concept of allowing a few people to decide on behalf of others is eliminated thanks to Work Quest DAO decentralization.
Decisions about the Work Quest protocol will include allocating funds from the governance treasury with a provided percentage that has been allocated to the total token supply and updating and modifying the protocol’s logic.
Work Quest DAO uses a delegate system from which token holders may delegate their voting rights to a different representative.
The right to vote is a choice meaning that participants do not have to vote every time. Alternatively, a user can select a confidant (delegate) who can vote on their behalf. Keep in mind that voting rights are dependent on the shares an individual owns. The better users are rated, the more trustworthy they are and the more their reward.
There is a percentage that is required to reach quorum during decision-making processes. This percentage represents the minimum number of “yes” votes for any proposal to pass. This is in addition to the minimum shares of the total supply required from a potential representative. The combination of these two requirements provides a challenge for the community-driven governance vote.
WUSD Protocol/ Liquidity Mining
Liquidity providers earn a percentage on every trade, proportional to the total amount of liquidity, for a specific token pair. Keep in mind that anyone can submit tokens as a reserve. Trades are facilitated against the provided tokens. The added advantage is the absence of middlemen in the process. Via the liquidity mine, the community receives an extra percentage of the Work Quest token.
Work Quest features a Work Net liquidity incentive program where users receive WUSD that provides liquidity on Automated Market Maker (AMM) platforms. The more liquidity a user provides the more shares in the WUSD pool they receive. These liquidity providers have the opportunity to take part in the seeing of WUSD from providing liquidity to the WUSD/ETH trading pair and receiving token rewards.
Retirement Savings Program
As a recruiting platform, it is important to consider the aspect of retirement. A shareholder chooses a percentage of the total of completed smart contracts. Once the sum of the total is realized, it is automatically paid off to the user’s savings account. Another added advantage is that the savings accrue profit in the form of annual interest. Therefore, DAO’s autonomous nature comes to play as the percentage is not dictated by the management meaning there is no outside control.
Work Quest P2P insurance offers protection from the community’s inability to perform their official duties. The concept behind P2P is the bringing together of like-minded people who have a mutual interest group their insurance policies.
While the Work Quest model of insurance includes the traditional pooling and sharing of profits and losses, it also provides a product for increasingly savvy consumers whose key objective is transparency in an on-demand economy. When an insured event arises, the fund’s team has the responsibility to vote.
With DAO, every decision is arrived at through an open discussion and voting. The added advantage is that there is no central entity that can interfere with a client’s funds. A user can transfer contributions by forming an insurance fund. From the insurance fund, part of these funds goes to payments of insured events. At the end of a financial year, takes a vote on whether to leave the raised amounts in the insurance fund or whether to distribute the funds among the participants.
A Decentralized Autonomous Organization (DAO) is the formal description for the Ethereum blockchain providing basic rules for the transfer of funds, managers’ appointment, electing representatives, and assigning tasks alongside performing other actions in a community may seek to adopt an ecosystem that will suit their needs. Work Quest DAO is, therefore, responsible for the maintenance and regulation of the Work Quest platform. Many other organizations are adopting the use of DAO decentralization in different industries to promote better functionality and transparency. DAOs enable organizations to attract and incentivize contributors as well as the pool and govern funds.