On Wednesday, October 30, 2019, CEO of Tezos Capital, Jonas Lamis introduced the idea behind its recently launched decentralized autonomous organization (DAO), StakerDAO reports Coindesk.
What does this new interpretation of DAO entail? According to the claims made, it encourages users to vote for the best sources of rewards that can be earned by validators within a network. Besides rooting for increased security, decentralization and a compliant system, Lamis describes the entirety of StakerDAO as one that promotes, “governing [of] financial assets.”
As for the investors involved in StakerDAO, one has been revealed and it is none other than Polychain Capital.
Polychain’s Olaf Carlson-Wee sees StakerDAO as a way to,
“maximize yield […] also about carefully curating a portfolio of these underlying staking assets.”
He further added that,
“[the] model wherein a DAO can generate value based on an underlying DeFi protocol is something possible beyond just MakerDAO.”
In the case of the latter, it is described as a ‘two-token system’ established for the DAI stablecoin, that is converting one’s ether to the dollar-pegged DAI. That said, a difference between MakerDAO and StakerDAO simply rests in the network they support. To be more specific, the former is built for Ethereum, while the latter for the Tezos blockchain.
Being Compliant Implies Being “Conservative in Your Vision”?
Just like MakerDAO has MKR as its governance token, StakerDAO’s is called STKR, which will be offered as securities, compliant by the U.S. securities law shares Lamis. Given that it is compliant, some requirements need to be satisfied in order to be able to hold STKR. It seems like not too much has been shared regarding this as of yet.
Here’s as per Lamis’ quotes:
“I don’t want to get ahead of myself on how that’s going to roll out yet. It’s not something the lawyers want to talk about yet [either] […] When you start dealing with the U.S Securities and Exchange Commission, you have to be very conservative in your vision.”
The StakerDAO System Step-By-Step
Here’s an overview of how StakerDAO will work:
- Beginning of every year, five council members will be elected by STKR token holders
- StakerDAO council members will be required to vote on proposals on a 30-day cycle
The second part of the StakerDAO governance was founded on Tezos Blockchain and as per Carlson-Wee, it made sense simply because of its ability to make hard decision-making as decentralized as possible. This is supposedly the primary reason why StakerDAO was based on Tezos rather than Ethereum.