How does DAO work with blockchain?

The DAO concept is indispensable for the future of the internet of value.

DAO is bringing a brand new form of substitute governance to the test ground.

Bitcoin and Ethereum are typical examples of DAO. Most of the rules are open and transparent, such as quantity limit, competing ledgers’ consensus mechanism and management rules. To some extent, DAO is a self-regulating payment organization. Every DAO member is the shareholder and developer of the organization. Miners and cryptocurrency exchanges also provide their services to participate in this organization. Every proposal for improvement must obtain universal consensus among all network participants to pass.

When DAO is requested by more people, the shares they were holding is likely to increase in value. Therefore they will be able to share the income from the value increment.

The adoption of DAO governance poses a very high requirement to blockchain project’s technical capability and financial strength. The project must be decentralized in its core logic.

In essence, DAO is a mechanism to transform organizational structure. DAO’s mission is to lower transaction costs through coordination. DAO is creating a brand new organizational structure. This is highly valuable to corporations.

In order to have a powerful DAO, its members must abide by the following rules:

1. Equality in obtaining the same information so as to make informed decisions;

2. Same fees for preferable transactions;

3. Decisions should be based upon DAO’s own interest and biggest benefit (as opposed to coercion or fear)

DAO attempts to unify individual incentives with overall best results (for individuals or companies). DAO is designed to solve issues related to group actions, thereby solve the coordination issues. By pooling the funds together and vote by fund allocation, all stakeholders will be motivated to coordinate and share the cost. This will benefit the entire ecosystem.

DMEX utilizes DAO’s brand new governance mechanism.

DAO is a loosely connected party that builds upon smart contract and token. DAO’s members share a common goal. Their cooperative relationship is only loosely coupled. However, their interests are highly interlocked.

DAO typically builds around a project. DAO utilizes token as incentive and proof of value. Implement smart contract to determine the cooperative relationship between its users and the allocation of profits. Members are not designated to specific roles such as investor, developer, partner, operator or consumer etc. Everyone who holds the token is a part of DAO. Everyone can participate in the building and decision making process of DAO.

Just like DMEX’s founder once said: We intent to utilize DeFi to provide an authentic and effective, just and fair trading environment for both users and miners. This is a fundamental safeguard for DeFi and other financial innovations’ further advancement. From the standpoint of corporation management and strategic planning, a methodical organization is able to gather more valuable inputs, work to a higher standard and dispense the benefits more equitably. Together we will be able to push the DMEX ecosystem to every corner of the world.

Hence, the decentralized cloud mining power financial service platform of DMEX is built to create a marketplace that can tokenize mining power as NFT, lower the barriers to user participation, make mining machine income transparent, automatically distribute income, collectively share the risk, and impartially governed by the DAO community. DAO is the obvious option. When a user purchased mining power, the miner must release income every day as the contract stipulates. If the miner defaults, or if the released income is lower than 80% of the average baseline for 5 consecutive days, the user will be entitled to apply for refund to the DAO. The platform will also punish dishonest miners. DMEX’s has reserved a portion of its platform token DMC as the rainy day fund. This fund is managed by DAO. If a miner black swan event occurs and causes significant economical loss to the users, the users can initiate a vote via DAO. If the vote is passed, the platform rainy day fund will be used to compensate the users.

DMEX’s innovation is also reflected by its tokenization of mining power NFT. DMEX offers a variety of creative financial tools in order to help users to obtain stable mining income. These tools include but not limited to mining power trading, NFT backed loan, and NFT backed mining. Whether you are a miner or an average user, you will be able to mobilize your capital on DMEX and maximize your income.

In conclusion, the brand new DAO infrastructure will greatly improve the flexibility and dexterity of future innovations. It lays the groundwork for a fair and trustworthy financial ecosystem.