Ethfinex, the sister exchange of troubled crypto exchange Bitfinex has recently launched a test decentralized autonomous organization (DAO).
Today we reach an important milestone in our path to decentralised governance with the launch of efxDAO.
Developed with @daostack, the experimental DAO is tasked with funding decisions for Trustless and Nectar initiatives.
Read more here: https://t.co/xMOfe7NL9i
— Ethfinex (@ethfinex) June 11, 2019
Ethfinex was launched back in September allowing users to trade more than 50 different ERC-20 digital assets. Apart from ERC20, users can also trade in ethereum-based crowd sales. Users can identify and monitor the market while discussing with like-minded enthusiasts about the projections. Customers can offer their input and engage in living up to date discussions. The community which includes traders and develops will ultimately be holders of Ethfinex.
With the above goal in mind, Ethfinex dived head first into their vision of a decentralized exchange. The DAO was built by DAOstack and is known as efxDAO, with an initial funding budget of $5,000, using the Alchemy interface and governance.
A decentralized autonomous organization (DAO) is an organization represented by rules encoded as a computer program that is transparent, controlled by shareholders and not influenced by a central government. It is an entity that lives on the internet and exists autonomously, but also heavily relies on hiring individuals to perform certain tasks that the automaton itself cannot do. This is sort of a problem currently for Ethfinex as the control of the exchange is with a select group of backers. However, they hope that more people will join in soon to decentralize and democratize it further.
The blog post of the announcement written by Ben Wilson goes on to say:
“The 21 founding members of efxDAO are made up of three equally sized groups that reflect the existing Ethfinex ecosystem: the largest nectar holders, active community volunteers, and existing Ethfinex personnel. The members of efxDAO can submit and vote for proposals on how the allocated Ethfinex funds should be spent, earning a reputation in the process and boosting subsequent voting power.”
Earlier this month BitcoinExchangeGuide reported a story about Ethfinex launching new decentralized OTC trading. Ethfinex announced it has released a new decentralized OTC trading desk for users to be able to exchange ERC-20 tokens. Ethfinex Trustless OTC has no Know Your Customer (KYC) or signup process, however, individuals from the United States and other jurisdictions are not going to have access to this platform.