This article was first published on 0x Blog - Medium
About a year ago we shared 0x’s long-term governance roadmap, where we walked through the technological milestones necessary for the progressive decentralization of the protocol, together with the creation of a responsible and accountable community. Today we are excited to share full details around the 0x DAO which will launch shortly.
Before jumping into the mechanics of the DAO (short for Decentralized Autonomous Organization), let’s spend a moment recapping why decentralizing the governance of 0x Protocol is so critical.
If you’re new to 0x and want to learn more about how the protocol helps create a tokenized world where value flows freely, visit https://0x.org/
Why are we doing this?
When we talk about centralization, it typically implies a single entity, whether a company, government, or individual, is in full control of all decisions related to how a technology or network is used and evolves. Centralization requires putting trust in a central authority and introduces higher risks of censorship and single points of failure. As we’ve seen time, time, and time again, it’s the users who suffer the consequences whenever these risks materialize.
Decentralization reduces these risks and transfers the ownership and decision-making authority to those who contribute to and use the technology or network. Decentralization also fosters transparent and open-source ecosystems where anyone, regardless of where they live or their background, can access, build on, and benefit from using the technology or network. Additionally, decentralization enables proper incentive alignment — those who contribute value (aka producers) receive the economic benefits from the technology or network’s adoption and growth, unlike a centralized model where typically only the central authority receives those benefits.
Creating the DAO is a significant step on the journey that 0x has been on in becoming a fully decentralized technology and network. It will enable ...
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0x Blog - Medium