The Collision of Starcoin and the DAO | Starcoin

The Exploration of Decentralized Organizations

The prototype of the DAO concept was proposed by Daniel Larimer in 2013 and named it DAC (Decentralized Autonomous Corporation). BM (Daniel Larimer's internet nickname) believes that the difference between this new corporate concept and traditional enterprises is "Decentralization",which means that its internal organization chart is determined by code, and the entire company is made transparent through the open source code, and its encrypted assets are used as shares of the company. Subsequently, the founder of Ethereum, Vitalik Buterin, also put forward the cognition of the DAC concept on his blog and magazine, and also proposed DAO soon.

In the middle of 2015, Vitalik Buterin released a milestone in the crypto world: smart contracts. As a result, cryptocurrency is not only circulated as a currency attribute, but also can carry trustless transactions and organizations.

Blockchain IoT company Sock.it made its first attempt: TheDao, Sock.it led the design of TheDao Ethereum contract, which was officially deployed on April 30, 2016, and then completed the world's largest crowdfunding program at the time raised 12.7 million Ether on May 27, 2016. However, due to contract bugs, it was hacked and stolen a large amount of Ether on June 17th of the same year. This huge amount of hacking incident also led to the hard fork of Ethereum. The biggest attempt of the Dao organization has also failed. People have doubts about Dao's decentralized organization concept. Can smart contracts really support a new organizational structure and have strong cohesion

Decentralized organizations has been reborn

Although TheDao's attempt ended in failure, the DAO organization did not disappear due to this reason. People began to summarize the reasons for the failure of TheDao. On one hand, the exploration of the DAO model is not deep enough, on the other hand, the generation of smart contracts on Ethereum is not long,there are many security vulnerabilities when writing contracts, but there are no better debugging methods. With these two reasons, it can be seen that TheDao's failure was not the failure of the DAO organization, but was caused by lack of experience.

DAO can be described as a capitalized organization in which software protocols provide information for its operations, putting automation at its center, and humans at its edges.

With the influence of Ethereum continues to expand, DeFI, NFT, GameFI, etc. People have a better and more understanding of the use and security of smart contracts, and the influence of DAO organizations continues to expand. For example: MakerDAO uses smart contracts to automate mortgages, it provides Dai as stablecoin cryptocurrency which aims to keep its value as close to United States dollar , as well as governance token MKR. The Dai stablecoin has become an indispensable part of the Ethereum ecology and even the crypto world ecology. There is also the recent Constitution DAO, which have raised $30 million in just a few days to purchase a copy of the U.S. Constitution. This is another great attempt by the DAO. People can use blockchain technology in a short period of time. Raise funds, and complete and open fair records through smart contracts.

Starcoin's DAO model

Starcoin, as a new public chain, is maintained and upgraded according to the DAO model, and the ownership and management rights are delegated to the community. Compared with the management model of the traditional open source community, the management of the DAO model is more scientific.

From a technical point of view, Starcoin's DAO model uses Starcoin's built-in Move virtual machine and uses the Move contract language as development language. The contract is contributed by the community to the Stdlib standard library, when Starcoin needs to be upgraded or improved, there is no need to rely on other DAO platforms, or voting on the voting platform, and users can use Starcoin token STC for voting governance.

From a management perspective, Starcoin has weakened the concept of traditional open source community administrators through the DAO model. The development direction of the project is completely determined by the community. Everyone who participates in the vote can determine each proposal and vote for supported proposals.

At the same time, due to the fairness and openness of smart contracts, each proposal and its supporters are also transparent and checkable, and there will be no mistrust problems that arise in centralized voting.

To Build DAO Model Conveniently

Starcoin has the Stdlib contract standard library, which can guarantee the safe reuse of contracts. Unlike solidity, solidity does not have the concept of a standard library. If you do not pay attention to referencing a malicious code library, the consequences will be unimaginable.

Projects built on Starcoin can easily reuse the DAO model for management. You can register your own project token and set it as a governance token. Through the DAO model, all users can actually participate in the governance of the project.

Vision of DAO Model

Recently, with the continuous development of the DAO model, various DAOs are gradually expanding in scale, but at the same time, various DAOs formed by interest, curiosity, and earning pocket money are also developing rapidly, such as BanklessDAO, DeveloperDAO, and so on.

BanklessDAO has more than 8,000 members. They have spontaneously formed guilds for writing, finance, translation, research, operation, marketing, law, education, design, business development, development, video, data analysis, etc. based on hobbies, professional skills, etc. , We can see that people all over the world can unite through blockchains and smart contracts to form their own circles and build the same project in a variety of ways, which is unimaginable in the traditional Internet era.

DeveloperDAO uses about 5000 NFTs as a bond to gather people who love or care about Web3 development to communicate. This is also an experiment in the DAO model under Web3.

After understanding the different types of DAO, we also found that the DAO model is suitable for social organizations in the new era. Various DAOs have sprung up and developed rapidly. In the past Internet world, people mostly used forums and instant messaging platforms as their main platform, it is still more difficult to become a mature organization. The purpose of DAO is to evolve group chat into a success-driven community. With the help of smart contracts and encrypted assets, the DAO model has a more transparent and complete reward and punishment mechanism. People with the same purpose but irrelevant to the region can manage the entire project more scientifically, realizing the positive impetus for the project.

Originally published at https://starcoin.org.

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Starcoin

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Starcoin is a proof-of-work blockchain that enables secure smart contracts based on Move to power services in Web 3.0