XDC Network Introduces DAOFIN: A Step Towards Decentralization
With the fall of prominent centralized crypto exchanges, a sudden demand for decentralization was observed across the community. As an answer to this, XDC Network, a blockchain network, announced its step forward towards decentralization, by launching its new DAO framework, DAOFIN.
According to the XDC Network team, DAOFIN aims to decentralize the development and management of the network’s ecosystem. The DAOFIN framework will fund, manage, and execute network upgrades, improvements, and other ecosystem projects such as dApps and tools.
The DAOFIN plan has been released for public comment; this public comment period will end on March 15. XDC Network claims this process is done to understand the public’s opinion about this project. Furthermore, they elaborated that there will be a 30-day break to revise the plan after receiving the feedback, and before sharing the final draft with the community.
Addressing the DAO-based governance model, the team behind XDC Network points out that the DAOFIN framework will be governed by a decentralized community of XDC Network stakeholders. These stakeholders can propose and vote on proposals related to developing and managing the network’s ecosystem.
“The DAOFIN framework is designed to be a modular system that can be customized for specific use cases,” says representatives of the team. “In contrast, other DAO-based governance models are often more rigid and standardized.”
Last week, when Ritesh Kakkad, the co-founder of XinFin took to Twitter to explain the project, the community was excited about DAOFIN, with several users congratulating the team on a job well done.
DaoFin: Decentralizing XDC’s Ecosystem Development.
A big step toward the decentralization of ecosystem development on #XDC, we would like to submit the following Draft Plan to the community for review: https://t.co/NSRIxUKbEu #XDCNetwork #Decentralization #DAO
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— XDC Ritesh Kakkad (@riteshkakkad) February 16, 2023
The launch of the DAOFIN framework is expected to impact the development and adoption of the XDC Network significantly. The framework is designed to make the XDC Network more decentralized, transparent, and community-driven, which could attract more developers and businesses to the network.
The crash of FTX had created an undeniable dent in the crypto space, with users losing trust in centralized exchanges. Similar to DAOFIN, many crypto firms are seeking different methods to meet the rising demands of decentralization. If the DAOFIN framework proves successful, it could inspire other blockchain networks to adopt similar DAO-based governance models, leading to a more decentralized and democratic blockchain ecosystem.