Shiba Inu developers announce the first phase of Doggy DAO as 125M SHIB coins are burnt In 5 days

  • The new Doggy DAO implementation seeks to handle control over the ShushiSwap DEX to the Shiba Inu community members.
  • The Shiba Inu developers have decided on a community voting process by staking the governance token BONE.

Shiba Inu, one of the top-performing meme coins of 2021 is heading for a major development ahead. Last Friday, December 31, 2021, Shiba Inu developers announced the first iteration of Doggy DAO.

This is a decentralized autonomous organization aimed at handing control over the project’s ShibaSwap DEX to the Shiba Inu community. The developers also launched DAO 1 in beta last Friday. Furthermore, they will also allow the Shiba Inu community to vote on which crypto projects and pairs they are willing to add to ShibaSwap’s WOOF liquidity pools.

Related: Shiba Inu team raises concern of scam; community warned not to share private keys

The community vote will also help in deciding the distribution of the rewards in the DEX’s BONE governance token. “This is in order to broadcast the capacity of community-oriented decisions, in ways that can accelerate the growth of Shiba Inu,” notes the official announcement. In one of the TwitterSpaces AMA, ShibaSwap’s Discord moderator Queenie explained:

It’s arisen because we believe in reducing the level of accountability that our team have to place in each other. It deters us from the ability to exert authority and control over certain areas; it’s about making it more decentralized.

Queenie further explained that DAO 1 will focus on “providing immediate power to the community”. Thus, the community members can cast votes on which crypto projects will feature in ShibaSwap’s liquidity pools.

Staking the governance token BONE

As the DAO 1 launches in beta, ShibaSwap users can cast votes on the listed projects by staking the BONE tokens. In return, they get tBONE, the staked form of the governance token. Thus, the higher the votes the project receives, the greater is its allocation points (AP) which measures how much BONE rewards have been allocated to the pool.

A maximum of 30 pairs can be executed and processed to appear in the WOOF Pools. Explaining it, the Shiba Inu developers noted:

This is a powerful tool, as the rewarded Liquidity Pools will be decided fully by the users. This avoids the Developers from making those very choices. The responsibility falls on the community, and what they want to experience within the platform. Therefore, from this point forward, any and all projects that want to form part of our WOOF Pools will need to be decided by community voting.

Since this is a beta launch, the ShibaSwap team will take important feedback from the Shiba Inu community. Queenie explained that the beta DAO 1 is still much more advanced than other normal beta launches. Besides, a community vote will help the developers in deciding whether if they are moving on the right track.

The subsequent DAO 2 launch will bring additional complexity featuring “improved use cases of BONE/tBONE tokens”. DAO 2 will also enable community members to make “generic proposals”.

ShibaSwap is also planning to launch new staking contracts alongside DAO 1. This will allow longer staking of the governance token BONe before the voting begins. The goal is to ultimately reduce the influence of whales and exchanges on voting.

The Shiba Inu ecosystem has witnessed a major token burning recently. Over the last five days, 125 million SHIB coins have been “burned” to reduce circulation.

About Author

Bhushan is a FinTech enthusiast and holds a good flair for understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In his free time, he reads thriller fictions novels and sometimes explores his culinary skills.

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