In the previous post we described our vision of Help Each Other as a decentralized crypto crowdfunding platform. While it’s pretty easy to admit the benefits of decentralization, it is not that easy to achieve. Thankfully, the main stops on the path of progressive decentralization have already been outlined and today we’re going to explain how the effective decentralized governing of Help Each Other will be implemented.
Starting Point of progressive decentralization
Help Each Other is founded as a DAO. Some might say that’s already enough as DAO stands for decentralized autonomous organization. However DAO is a pretty complex idea. It combines technical and social aspects and requires meaningful steps to be taken to become a decentralized autonomous organization not only by name.
First stage of progressive decentralization
HEO DAO starts with a minimum viable product: the platform for convenient crowdfunding in stablecoins for manually whitelisted NGOs. At this stage the governing of HEO DAO is at hands of the team and the users are participating using the platform’s functionality as it is with traditional crowdfunding platforms. The goal of this stage is to build a community of active users who are interested in the platform’s development.
Second stage of progressive decentralization
The active participation shall be rewarded with the influence on the development of the platform. That’s why as soon as the community is big enough the project is tokenized. The first sales of tokens and the airdrops to those who actively participated at the starting stage of the platform’s life happen.
After that natural persons who have enough HEO tokens get the right to start crowdfunding campaigns at the platform. The functionality of farming donation rewards and of liquidity mining is implemented at this stage.
At this stage users start to participate in the platform’s governing, proposing new decisions and casting votes. However at the second stage the team still keep quite a big influence on the platform.
Final stage of progressive decentralization
As more and more users get involved and receive voting rights we approach the third and final stage of progressive decentralization. At some point the number of active users who received voting rights and are interested in the platform’s development becomes big enough for the platform to be sustainable even with the founding fathers losing their power. The members of the team, the investors and the advisors may keep their voting rights, but the rising number of users who also have such rights make the team’s influence more and more diminishing. And as soon as that number hits big enough value, the users start to have more influence on the decisions making than the founding fathers.
But for the platform to be fully decentralized the implementation of new decisions supported by the votes shall happen automatically, based on the smart contracts of the platform. These contracts require thoughtful development and thorough audit as any flaw in governing smart contracts allows hackers to take the platform and all its tokens under their control.
That’s why the third stage of the progressive decentralization starts with new decisions of the community being added to the platform manually by the team. During the final stage of progressive decentralization the governing smart contracts are developed and audited. At the moment when the implementation of new decisions is written in the smart contracts and therefore doesn’t depend on the team’s readiness to accept it, the progressive decentralization reaches its goal.
The path of progressive decentralization is complicated. The users need a reason to use a yet quite centralized platform at the first stage. In our case this reason is a possibility of convenient crowdfunding in crypto with no geographical and political limitations. The second stage requires users’ participation. In our case the decision is the possibility to make propositions and to cast votes. At the third stage the team shall be ready to lose the influence. As the decentralization provides sustainability, we’re keen to walk this path with you.