The rise of DeFi (Decentralized Finance) has opened the door for more sophisticated open-finance systems and tools that don’t rely on banks and other legacy systems. Sigmadex proposes a DAO structure which balances reputation and community to achieve a reliable consensus for protocol development.
"Financial incentives to encourage participation in these systems is only one component to achieving adequate involvement."
- Roland Haggins, Co-Founder
Incentives and the ways in which they have built upon one another have become crucial for DAO governance — without the proper financial incentives in place network participants have no real reason to put their time, money and energy into networks, vote on proposals to improve them or care about their continued growth and/or success.
Balancing Reputation with Community Feedback
Sigmadex is proposing sSDEX to 12 reputable crypto organization council members. These tokens are proposed to be time-locked for a period of time to ensure intentions for participating is not driven solely by short term monetary gain. Distribution of these assets will be transparent on the blockchain for everyone to see. Even after the vesting period has matured the participants will have the option to continue staking for further governance contribution and involvement or realize their gains themselves or with their respective communities.
Ensures opinion quality remains high and systematic. By involving a mixture of reputable organizations with organic community we ensure there are no personal biases. Credibility in the protocol and the future success will be in the hands of affluential and trusted parties. This will provide dependability and transparency as well as recognition of the road ahead and what needs to be done to establish longevity.
Why Operate as a DAO?
The Sigmadex DAO will need to add new collective skills and governance processes as its activities continue to develop; keeping in mind that a successful DAO will recognize shortcomings relatively quick. By operating as a DAO and involving the right parties for contributing to consensus the following can come to fruition:
- Collective Asset Ownership
A specific pool of assets owned by the organization should function as a decentralized organization with considerations of assets and liabilities, liquidity, income and where to allocate necessary capital for continuous growth.
- Protocol Upgradability
Parameter changes made to the protocol and feature additions should be determined by the community as they are ultimately the users of the technology. Considering what the people want will ensure we are not creating a bias toward what the team wants.
- Collective Responsibility
Being held responsible as a group for major decision making without pointing the finger will remove pressure from the organization being operated by a single individual. Participants will naturally have to look out for the interest of the protocol instead of themselves.
- Risk Management
Market volatility, price and other market conditions outside the control of the organization require continuous monitoring and input from the community as everybody involved can have different perceptions.
- Carries Credibility
- Well Established and Respected
- Innovation and Tech Driven
- Understands the Sigmadex Long Term Vision
DeFi has created an efficient industry without the involvement of middlemen or traditional financial institutions. Proposing sSDEX to credible sources within crypto builds on our vision of sustainability by giving visibility to our platform and creating further trust. Locking the sSDEX for an allotted period of time provides another layer of transparency and dedication towards the strength and longevity of Sigmadex. The DAO will be composed of notable, trusted and distinguished parties that are selected based on a set of criteria that we have curated with our metrics for success and best outcome. By operating as a DAO the contributions from all parties will help to upgrade the protocol based on current/future tech while also providing additional decentralized functionalities.
Stay tuned for our DAO inauguration as we prepare for our launch event!