We believe that the following basic layer protocols and principles are very important to DAO and can help DAO seek stronger economic support.
# Staking Economy
Whether in the physical world or in the crypto world, staking is a very important basic economic principle. In the Bitcoin network, miners "lock" energy and hardware assets, verify transactions, and obtain mining rewards. In the PoS network, miners become verifiers by staking Tokens, and the token holders actually provide a staking Token to the protocol to prove that the verifier will fulfill its obligation to stay online and faithfully verify transactions. The token holder provides this deposit for the purpose of obtaining future bonuses (Staking reward).
As of April 2021, the scale of the Staking Economy is approximately 589.5 billion USD, of which the PoS chain pledged Token (Staking Token) exceeds 120 billion USD, and the annual staking reward (Staking Reward) is as high as 18 billion USD.
Staking Tokens of more than 120 billion USD are used as margin, and their liquidity is restricted. Through the decentralized pledged asset liquidity agreement to release its liquidity, this will bring different DeFi application scenarios such as transactions and lending. The most important thing is that the tradable Staking Token has spawned a new asset class with staking attributes and expanded the market for digital assets.
Nutbox uses the mechanism of Staking Economy and creatively combined with Staking Reward to propose a new distributed financing model-"Crowd-staking". While this new distributed funding model brings Funding to DAO, it will further democratize funding, better protect investors and make the ecosystem more reasonable.
In 2020, DeFi has sprung up, and Yanran has become a decentralized financial public infrastructure. As the value layer of the decentralized network, DeFi builds a unique value layer on top of the computing layer based on Ethereum.
The biggest change brought by DeFi is that infrastructure or financial products can be intelligently contracted, and Dex and Lend can be completely built on smart contracts. DeFi greatly reduces the cost of token flow, allowing DAO to find a path to discover the value of its token without going through a centralized exchange. Furthermore, the cost of raising funds for the DAO is reduced, and the efficiency of the DAO is improved.
On the other hand, DeFi makes it easier to build DApps based on DAOs by intelligently contracting infrastructure, financial products, and transaction behavior. As more DAO members use DApp, this will improve the economic model of DAO and promote the large-scale proliferation of DAO.
# Social Media
It can be said that in just a decade or so, social media has forever changed the way society operates, whether it is sharing ideas, spreading news, or providing products and services. As the underlying infrastructure component of consumer-oriented applications, social media is embedded in almost all to C Internet products.
We need such a social media system, which is based on encryption technology and not based on the credit of third-party platforms. It relies on economic mechanisms to build a strong and decentralized P2P network to coordinate network participants, so that any group can create incentives and open rules. On social media, group members communicate with each other without the need for a third-party platform to make decisions for us. An open and neutral agreement can transfer the decision-making power from the third-party center to the edge of the network. Open protocols return data control to users, allowing users to obtain better privacy and security, and to regard themselves as active producers and participants in creating value.
The main changes that such Social Media brings to the world are: 1) The crowd and real content creators will get a comparable return for their work, 2) The establishment of new standards for the fair distribution of rewards and values, and changes in the way the Internet operates . It will become a new infrastructure for rewarding wonderful content on the Internet of Value, and establish a fairer and more balanced open Internet by allowing everyone to have ownership in the new attention economy.
Anyone can gather in their tribe (DAO) around specific interests, and encourage the sharing of wonderful content by rewarding creators who solve community problems. In this way, Community-based Social Media will be the most shining star among DApps and become the core component of DApps, helping DAO components to open the Internet-Web3.0.
Another very important point is that through Social Media, ordinary users will smoothly transition to the blockchain world, start using DApps, build DAOs, and become new citizens in the digital world.
# NFT Standard
Just as we had digital currencies (such as airline points, currency in games) before the advent of the blockchain, since the birth of the Internet, we have owned non-homogeneous digital assets. Domain names, event tickets, in-game items, and even content on social networks such as twitter or Facebook are all traditional non-homogeneous digital assets.
Blockchain adds several unique attributes to non-homogeneous assets through NFT technology, such as standardization, interoperability, programmability, tradability, liquidity, immutability, and provable scarcity, which have changed users The relationship between developers and these assets.
The NFT standard will digitize data assets, even physical assets in the real world, into universal, reusable, and inheritable digital assets. The NFT standard also allows non-homogeneous tokens to easily move between multiple ecosystems, builds free trade in an open market, and promotes the DAO's open and free market economy. NFT has also expanded the unique digital asset market, giving it programmable features.
This is similar to other blocks of the digital world, such as JPEG or PNG file formats for images, HTTP for requests between computers, and HTML/CSS for displaying content on the Web. The NFT standard allows developers to build decentralized applications on traditional non-homogeneous digital assets.
We know that the engines of the digital economy, such as Facebook, Google, Twitter, reddit, and Microsoft, collect the data we leave in online interactions for free, which is the source of their record profits as the most valuable companies in the world. Relying on the NFT standard and the infrastructure of a decentralized value network, individuals will become the owners of data, and DAOs will have the ability to process data. Using a decentralized protocol, DAO acts as a traditional platform to help its members program, trade, and flow data assets, and return the corresponding value to their owners. This will increase the possibility of people developing skills or careers around digital contributions.
In addition, NFT introduces traditional non-homogeneous digital assets into the blockchain world, which can make up for most of the holes in the bottom layer of DAO systems in the past, expand the scale of DAO users, and re-establish a new foundation.