What to expect from phase 1 of Shiba Inu’s Doggy DAO

Lavina Daryanani
Source: SinceCoin

Shiba Inu has always tried to uphold the decentralized tag associated with it. In the same process, it established ShibaSwap, its own native DEX. Even now, it continues to fulfill its original mission to work towards decentralization.

Towards the end of last year, for starters, SHIB developers made an announcement with respect to Doggy DAO, the to be decentralized autonomous organization of Shiba Inu.

The release roadmap

The DAO would not be released in a single go as such. Clarifying the same, their official blog post noted,

“DOGGY DAO will be released in a stage-by-stage metric and phased approach.”

The phased launch would allow the community to understand what are the needs, and requirements of the project.

The first phase is essentially called DAO 1 (Beta) and is focused on providing immediate power to the community in order to decide which crypto projects and pairs on the ShibaSwap WOOF Pools will be, and how the BONE rewards would be distributed amongst them.

Underlining the motive of doing so, their official statement noted,

This is a crucial first step, orienting our Decentralized Exchange to grow, while promoting all the benefits to the ShibArmy from such pairs, and welcoming new investors to use the platform.

Simplifying the selection headache

One of the goals of DAO 1 is to make it possible for the community to decide which crypto pairs will be added to liquidity pools on the ShibaSwap DEX. There will be a list of the ‘Top 50 Liquidity/Volume Pairs’ from ShibaSwap, and each user can weigh their important votes into the project or projects they are interested in.

This tool will motivate and allow external projects, and their developers to provide liquidity for their tokens/pairs, while aiding ShibaSwap to continuously increase its utility and volume.

By doing so, projects will be incentivized to be competitive, which will benefit the Shiba Inu ecosystem.

The beta version is meant to gauge the ShibArmy’s sentiment and receive feedback before the rollout of a more complex version called DAO 2 that would permit making a wide range of proposals.   

From now on, users would be able to vote on each individual pair by staking (burying) the BONE token and receiving tBONE tokens in order to gain voting rights. HODLers will also be able to decide how much BONE liquidity providers will receive.

Users can pick a maximum of 30 pairs that will end up appearing in the liquidity pool for a period of two weeks. After that, the community will have to select a new pack of trading pair. Once done, the cycle would keep continuing.

What about the ‘whales’ in the room?

Whales remain to be a threat to decentralization in most crypto projects, considering the size of their transactions and the influence they carry. Shiba Inu developers acknowledge the fact that the voting process could be skewed by large holders, but they are going to introduce a mechanism in the following days that are meant to make the system fairer.

In order to lock BONE tokens for a longer period of time, they will also launch a new staking contract soon.