BD’ Tension Triangle governance opening the DAO way of decentralized Financial
Decentralized finance was born in August 2018 when Ethereum developers and entrepreneurs chatted in encrypted instant messaging English telegram. This is a kind of Finance Based on blockchain. It does not rely on financial institutions such as securities companies, exchanges or banks to provide financial tools, but uses smart contracts (such as Ethereum) on blockchain to carry out financial activities. In 2020–2021, the total lock up volume of defi has approached us $100 billion, an increase of more than 240 times. With more and more DeFi products appearing on Ethereum network, Dao has gradually come into people’s view. According to blubber Dao, defi and Dao are mutually reinforcing and inseparable. According to the survey, the vast majority of defi products have started cooperation with Dao, and some even began to develop Dao agreements suitable for their own ecological development.
What is a DAO?
A DAO is a decentralized autonomous organization. Once launched as a smart contract on the Ethereum blockchain, a DAO operates according to its programming. These organizations run without a central operating authority, all the rules of the organization are enforced by its code running on the blockchain. Furthermore, DAO often manage their own treasury and issue their own tokens. These tokens represent membership, voting rights, and/or ownership of the DAO. In the Ethereum ecosystem, DAO fill similar roles to traditional organizations you are familiar with like corporations, cooperatives, non-profits, etc.
The role of DAO in DeFi
Decentralized finance grew alongside the rise of popular for-profit DAO which now own and operate decentralized financial (DeFi) services. As previously mentioned, many DAO involve their own tokens with built-in incentives to keep their service running. Many smart contract platforms sold these tokens in initial coin offerings (ICO) to get their service off the ground. Token holders became stakeholders in the future of these platforms. And, DAO generally fit the bill for any time a smart contract platform needs to adjust its token mechanics or platform rules.
Token holders vote on issues controlling these DAO and how their services run. Much like the shareholder of a company, token holders want the protocol to run smoothly and create demand for the token. So naturally, it’s in token holders best interest to implement features that draws users to the platform or accrues additional value for the token. For example, adding a coin burn mechanism reduces the existing supply of tokens. Or maybe, platforms add support for new tokens, decided by token holders. MakerDAO and Kyber Network are two primary examples of DeFi protocol making use of this type of token incentivized governance.
As the world of DeFi grows and protocols become more complex, it’s very likely that DAOs will become more significant. Carefully managing large protocols becomes a priority for the entire community.
Blubber Dao triangle governance realizes real decentralization
As the world’s first community driven decentralized financial activity governance platform, blubber Dao’s biggest advantage is triangular governance and decentralization mechanism.
Blubber DAO Tension Triangle governance and Decentralization
Blubber DAO is run by volunteers in a decentralized ecosystem, using blockchain technology to build an increasingly decentralized financial autonomous ecological governance and community. Blubber improves the external scalability shortcomings of the original decentralized financial system by combining various external platforms and financial services as well as the Blubber and Spoke (B&S) system.
The components of the DAO Tension Triangle are:
In the context of a DAO decentralization is not just a technical aim but a political one.
Decentralization becomes a belief system by which members maintain their loyalty to the DAO.Specifically, how many individuals or organizations ultimately participate in the DAO.
The degree of decentralization also differs for every DAO and is governed by their purpose,
capabilities, and costs of participation.
A person who believes in rights and power for the individual. The individual is often someone whobelieves in self- governance and the greater good but wants individual rights to be upheld, and who is willing to do things for his/her self. The definition can also extend to include registered or unregistered corporations that operate under the jurisdiction of their lands and are legally treated and defined as individuals.
Governance rules relate to organization legal structure, operations, purpose, membership, onchain and off-chain voting, and all facets that enable its existence and dismantling.
Conclusion: the large-scale outbreak of defi makes people see the huge demand and dependence of financial system on Dao. Blubber Dao adopts the tension triangle governance system to realize the complete decentralization of power.