The aelf Foundation recently released the aelf DAO Management System Draft within the saelf governed community. The release enables aelf community to establish a new decentralized autonomous organization (DAO) to stimulate the aelf ecosystem.
aelf Banking on the DAO Architecture
In a bid to make its governance decentralized in the true sense of the term, the aelf Foundation has floated the idea of establishing the aelf DAO management Committee. The Committee will be responsible for all aelf DAO affairs.
According to the announcement, members who decide to join or leave the Committee are mandated to initiate a Parliament model proposal voted on by the production nodes. Notably, all production nodes are elected by the aelf community members. Following is the flowchart describing the proposed aelf DAO Committee.
More About the aelf DAO Management System Draft
Per sources close to the matter, the aelf DAO governance model will be broadly built around grants and bounty projects. The DAO will aid the aelf Committee in providing rapid funding and resources to any project with the potential to have an impact on the aelf ecosystem.
Specifically, aelf will set up a DAO fund pool to financially help the development of grant and bounty projects. The funding for the fund pool will come from the aelf Foundation that will contribute 25% of its ELF funds. In addition to this, the aelf Foundation will encourage external investors to be a part of the aelf DAO governance project. Funds brought in by such investors will be directed toward the fund pool.
With regard to the funding of the grant and bounty project, the announcement states:
“For grant projects, when community users’ proposals are voted into the scheme, the pool will finance them in accordance with the budget contained in each proposal. With regard to the bounty project, when the proposal is voted into the scheme, it will be distributed according to the budget in the proposal and according to the contribution of each participating community user.”
Voting Mechanisms for Grant and Bounty Projects
A total of two rounds of voting are involved in the release of the proposal for a project application grant or bounty project. While the first voting round requires the aelf DAO Management Committee to cast its vote, the second round requires the same from the production nodes.
Among other facets, the two voting participants will check the proposal development details, project delivery, and the required financial support for the development of the project.
After successful development and go-live, when a grant or bounty project starts generating profit, its initiator or participants will share the profit with the fund pool in a manner congruent to the established profit distribution rules.It’s also worth highlighting that all DAO Management Committee members may receive an annual 5% profit sharing of the fund pool, as per the existing draft.
Benefits of Becoming an aelf DAO Management Committee Member
Being an aelf DAO Management Committee comes with a slew of benefits.
aelf DAO Management Committee members get to participate in the voting of the aelf DAO’s proposal and aelf’s governance decision-making. As mentioned earlier, they receive equal shares in 5% of the fund pool’s profits in addition to aelf development dividends.
The members also get to initiate grant project proposals and participate in bounty projects to get fund support from the fund pool. They can also submit a proposal to be voted on.
Further, the aelf DAO has a streamlined organizational structure devoid of any kind of hierarchy or asymmetry of power. In the aelf ecosystem, all members are equal.
Interested individuals who’d like to participate in the aelf DAO can apply to join the “saelf governed community” which is the community’s Telegram community for fresh and in-depth communication.
Upcoming aelf dApp Competition
The aelf Community is also organizing a test decentralized application (dApp) development competition from April 21 00:00 SGT to June 9, 23:59 SGT.
The competition aims to provide a reliable and user-friendly dApp development environment for programmers to develop and run their dApps with focus on performance, chain governance, and user experience. Interested individuals or teams can sign up for the competition here.
Two awards are up for grabs at the competition – the Best Application Award and the Winning Design Award – both worth 20,000 ELF each (approx. $2,500).