Understanding Cryptocurrency: What’s the Hype About?
When we say cryptocurrency, you might associate it with multiple things: confusion, money you can’t touch,
Decentralized Autonomous Organizations (DAOs) are entities driven by communities without central authorities. DAO is a management structure for businesses to adopt and make decisions collectively.
As of today, there are about 4,824 DAOs in the crypto industry. DAOs in crypto are typically empowered by smart contracts with rules and measures encoded. A DAO community creates proposals for the DAO’s future operations and then votes on each proposal. Proposals that achieve a set level of consensus are accepted and incorporated into the smart contract, mitigating the risks associated with corruption and thus elevating the level of inclusivity. Essentially, the incentivization is what keeps the DAO structure healthy and sustainable. A successful DAO would enable its community to drive better business growth and always voting with the company’s best interests at heart.
Voting is often accomplished through token issuance, by which the DAO sells tokens to raise funds and fill its treasury. In return, token holders have voting rights; however, voting power is distributed among members based on the number of tokens they hold.
Magic Square developed a community validation system with DAO mechanisms. Every community member is entitled to be part of the validation and listing process on the Magic Store – where the community gets to vet, rank, and prioritize the crypto applications in a decentralized manner, with clear earning metrics to further incentivize and encourage participation.
As part of our DAO system, all applications available on Magic Store have been pre-screened and vetted by the Magic Square community. Our community of validators does extensive testing and due diligence regularly to ensure that only legitimate and trustworthy apps make it to the store. This simplifies the decision-making process for all users, who no longer have to be concerned about an app’s functionality and authenticity.
Magic Square offers incentives in various forms to ensure active participation from validators and users, opening doors for the world to enter the Web3 world easily with a single sign-on. Along with the reviews and ratings, the primary features of each application are stated in the profile: speed, transaction processing, relevant metrics, and more.
In a nutshell, Decentralized Autonomous Organizations help create an avenue where every member has a voice. This eliminates the need for centralized authority in favor of a collective voice in which every member can be heard. To be part of the Magic Community, click here.