The cryptocurrency ecosystem has been fueled by the idea of decentralization and the concept has been further explored with the subsequent DeFi revolution.
The concept of DAO or Decentralized Autonomous Organisation came about in 2016 as an open-source code without a management structure and it acted as a form of venture capital fund. Simply put, a DAO is a smart contract where all the rules are written in the source code and all shareholders make decisions in a democratic manner by voting.
xDAO takes this idea further and allows its users to manage their crypto assets in a few clicks using DAO. Users can set rules and combine and manage investment funds of multiple partners according to these set rules.
What is xDAO?
xDAO was launched in April 2021 and is the first and the only DAO-builder on BSC. It offers its users an innovative DeFi platform that is fully integrated with top DeFi protocols on BSC. It was also the winner of the Binance Smart Chain Hackathon.
Users also get the chance to connect their projects to their organization and distribute profits among team members in a transparent manner. In order to empower digital companies and asset markets, xDAO has established infrastructure on Binance Smart Chain.
xDAO aims to make the DAO protocol simple and accessible for the masses as although the DAO model has been used by numerous financial protocols, it still hasn’t seen mass adoption.
Easy account set-up and security audit
Users can become a part of the xDAO platform in 4 easy steps – they need to install the Metamask extension to their web browser, and then need to create a wallet or import their wallet using a seed phrase.
After this, users can add a BSC network to their MetaMask. Once this is done, users can connect their wallets and create their own Decentralized Autonomous Organization and use all features on the xDAO platform.
xDAO passed a security audit by the Pessimistic, which has helped them meet the challenges faced in the current blockchain environment.
Types of DAOs on the platform
With the xDAO platform, users get a chance to build a smart contract organization by using templates. These smart contracts are then deployed by a special factory which further allows the creation of an organization within a single click.
These organizations can further interact with other smart contracts present in the BSC ecosystem and can also be used as a tool for asset and token distribution from other smart contracts.
xDAO has 2 types of organizations:
- Decentralized Autonomous Company (DAC) – The DAC offers a solution for teams that need to collectively manage shared crypto assets efficiently. Token holders can access the company’s balance sheet but cannot take part in governance.
- Decentralized Autonomous Fund (DAF) – The DAF is a type of crypto asset management model that is further decentralized. A common board of token holders make all the decisions and the quorum percentage is set according to the case.
xDAO Voting System
Every organization has its own Governance Tokens (GTs) that help users dictate their share in a company’s assets. In a DAF setting, the GTs give the users voting rights that enable them to take part in financial decisions. The GT tokens can be made burnable giving users the option to leave an organization and withdraw their contribution.
Audiences and Roadmap
The xDAO platform has a large audience and its use cases can be utilized by venture capitalists, startups, freelance groups, and public funds and foundations alike.
The platform is gearing up for the announcement of their $XDAO token along with their V2 that is developing a multi-chain network (on Ethereum, BSC, Polygon, and Solana) and a new off-chain model of voting.
xDAO is also looking to create more internal tools for organizations including data and analytical services to provide an insight into the organization’s transactions and interactions pertaining to other smart contracts.
Conclusion
The DAO model has proved its efficiency in being a collective management system of all crypto assets, however, its use cases can be explored further, xDAO provides one such opportunity with their platform. xDAO is the first automated platform for crypto asset management and it is constantly working on improving its platform so as to give the users a smoother and more efficient experience.
As mentioned earlier, xDAO is already integrated with the Binance Smart Chain, and with their V2 they plan to become multi-chain (by integrating Ethereum, BSC, Polygon, and Solana) and launch their Open Source Web 3.0 extension in order to interact with all DeFi protocols.
xDAO has a lot of use cases that appeal to a wide range of users and with the growing popularity of DeFi, it provides a reliable platform for users to function in a truly decentralized manner.
For more information, check out their website and their socials:
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Disclaimer: This is a paid post and should not be treated as news/advice.
