xDAO Protocol for Joint Crypto Governance Launches on Binance Smart Chain
April 20, 2021, 9:04AM EDT · 1 min read
Organizations working on the blockchain and giving the opportunity to combine crypto assets for investment in Decentralized Finance (DeFi) became a trend last year. Their role should become even more prominent in 2021. The Total Value Locked (TVL) of DeFi projects on Ethereum has grown 3.5 times since the beginning of the year, and on Binance Smart Chain – more than 35 times.
xDAO allows users to jointly hold a wallet and manage cryptocurrencies for collective purposes through auto-generated audited smart contracts. Each DAO can store any tokens supported by the Binance Smart Chain, including NFTs, on its wallet.
“The user experience for us initially came first. Our dream was to create a platform through which DAOs can be managed by ordinary people, and they will not need to understand the complicated details of how it works internally. I hope we succeeded”, — said Vladislav Shavlidze, the founder and CEO of xDAO.
The platform allows to create 2 types of DAOs — a company (DAC) and a fund (DAF). Both DACs and DAFs issue Governance Tokens the funds from the sale of which go to the general wallet.
DAC is a good option for small teams that need to collectively manage shared crypto assets quickly and efficiently. All decisions in DAC are made by the Team. Token holders have rights to the company’s balance sheet but do not participate in governance.
DAF is a more decentralized model of crypto asset management. The fund has no Team; all decisions are made by a common board of all token holders. The quorum percentage is set on a case-by-case basis.
According to xDAO CTO, the team of a project “managed to create a very high-tech product, which has long been expected on the market”. “Decentralized finance is developing so fast that more and more people want to participate in the formation of a new crypto market, and DAOs become the optimal solution in this case”, — added Egor Gavrilov.
© 2021 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.