The developers of Shiba Inu (SHIB) want to improve the decentralization of the project thanks to a DAO (decentralized organization) whose beta version will remove them, in particular, the responsibility of deciding the pairs integrating the liquidity pools. The community will vote for the projects or cryptocurrency pairs that interest them in particular. Applicants who want to enter the pools will thus have to “make things attractive” for SHIB holders in order to get the maximum number of votes.
Shiba Inu and Doggy DAO: Power to the paws of SHIB holders
On December 31, 2021, the developers of Shiba Inu reveal in a blog post the beta version of Doggy DAO. This will be rolled out “in a metric and incremental, step-by-step approach”.
The first phase, DAO 1, allows the community to decide which projects and cryptocurrency pairs will be able to integrate the WOOF pools of ShibaSwap, which is the decentralized exchange of the SHIB ecosystem and whose governance token is bone shibaswap (BONE). Through DAO 1, users will also be able to decide on the allocation of BONE rewards for these pools.
Users will have to stake their BONE, obtaining tBONE in return, in order to vote. In order to reduce the weight of whales in the voting, “the gatekeepers (6/9 portfolio) will have the final say in deciding whether the pair should be listed or not”, to avoid potential abuse.
The more votes a project receives, the more allocation points it gets, which are used to determine the amount of BONE rewards allocated to pairs in the pools.
From DAO 1 to a more complex DAO 2: generic proposals
ShibaSwap will compile a list of the “top 50 pairs in liquidity/volume”. On the Monday following the launch of DAO 1, up to thirty pairs voted by the community will enter the pools. They “will be highlighted for a period of 14 days” and their allocation points will remain unchanged until the next vote is held and concluded.
A new version of Doggy DAO, DAO 2, will be released after the developers receive feedback from the community on how it works, and collect “workflow” data to ensure that the “community finds the system easy to use, safe and fair.”
DAO 2 will include “improved use cases for $BONE / $tBONE tokens”. The community will be able to make generic proposals that will be reviewed by “the Multisig and Breeds team”.
Shiba Inu announces on paper, good news for the community. A DAO can only strengthen the legitimacy of a project that claims to be decentralized. This announcement about the Doggy DAO was published a few days after the announcement of the developer of ShibaSwap, Eric M, about the upcoming release of Shibarium, the second layer of Shiba Inu.