Creating a DAO on Velas can bring teams various benefits. These include having a fully autonomous and transparent organization, leveraging smart contracts built on the Ethereum, enjoying lightening fast transaction speed at near-zero cost, and more.
- The future organization will take the form of a DAO, for which Velas provides an efficient infrastructure.
- Leveraging Velas (VLX) blockchain, developers can build DAOs in multiple languages, and Velas supports cross-chain interactions.
- Notably, when building a DAO, the team needs to think comprehensively about the DAO structure, tokenomics, community establishment, etc.
- DAOs have chosen to join the Velas blockchain to benefit from its low cost, high efficiency, and the Velas $100 million grant program.
Introduction
While Ethereum is still working to shift to the energy-efficient proof-of-stake model, various blockchains have emerged to address Ethereum’s scaling issues. Of all the alternatives, Velas is among those gaining the most recognition.
According to DappRadar Token Explorer, the Velas (VLX) token has added 9.76% in comeback over the past seven days, trading at 0.046 at the time of the writing.
Velas is a blockchain that inherits ’s technical strengths and offers a high-performance EVM-compatible solution. Therefore, it can execute smart contracts and dapps built on the Ethereum stack smoothly and at a much higher speed and lower costs. Impressively, Velas can process 50,000+ transactions per second (TPS) at a near-zero cost.
Furthermore, Velas strives to provide an ultimate infrastructure to empower decentralized autonomous organizations (DAOs) with its groundbreaking technologies. So why is DAO gaining traction in the blockchain world?
First of all, let’s get a handle on the question: what is a DAO?
Briefly speaking, a DAO is a virtual community-led entity without any central leadership, and the decisions are made through voting on the blockchain. As this can bring a more democratic, transparent, and equitable organizational governance, DAO is entering the mainstream of business management, especially favored by the crypto community.
This article will show how to start DAO on Velas. Before diving into the steps, developers need to have a Velas wallet and own VLX since dapps interact with the Velas blockchain by sending transactions with one or more instructions.
DAOs on Velas are built to scale
Unlike traditional organizations, which have their rules written down on paper, the rules and regulations of a DAO are programmed in an open-source manner and run by smart contracts. Leveraging Velas blockchain, developers can build DAOs backed by smart contracts in multiple languages. In addition, DAOs on Velas are built to scale since the Velas blockchain supports cross-chain interactions.
Decide the type of a DAO
The construction of an organization requires careful thought, and so does the creation of a DAO. The reasons and motivations behind the creation of a DAO are worth pondering. These considerations will help determine the best structure for a DAO. What do you want to achieve with your DAO? What are the short and long-term visions of the DAO? Is a decentralized, non-hierarchical ownership structure necessary for your project? These are just some sample questions to think about.
Organizations can also use their imaginations to come up with their own choice of DAO, but generally, they cover the following types:
- Protocol DAOs
- Grant DAOs
- Social DAOs
- Collector DAOs
- Venture DAOs
- Media DAOs
- Social Media DAOs
- Entertainment DAOs
Design the tokenomics
The goal of DAOs is to replace corporations and organize various commercial and non-commercial activities in a bottom-up manner. For these activities to run smoothly, economic incentives are naturally needed. Therefore, strategically considering the distribution and utilities of tokens in DAOs is critical to the development of the community.
DAO tokens can be used for:
- Rewards and incentives
- DAO governance and voting on the direction of the DAO
- Unlocking other benefits and opportunities for your community
Other critical aspects of tokenomics include the token’s initial supply and allocation. They serve as part of the business plan of a DAO; therefore, these matters are essential for investors to consider when making an investment decision.
Build and engage your community
For teams building a DAO for the first time, there is no need to worry too much, as third-party tools are available on the market to help them start quickly.
However, the most crucial part that makes a DAO successful is the people in its community. If a DAO has an engaged, active, and devoted community, it is more likely to survive in the fierce competition and even thrive.
It’s worth mentioning that building a community isn’t limited to making appearances on social media such as Discord, Telegram, or Twitter. A vibrant community relies on builders, creators, and Web3 enthusiasts who share the same vision and contribute together.
Conclusion
Startup teams have chosen the Velas blockchain as the infrastructure for building their DAOs. For example, VeleroDAO, the DeFi platform based on the MakerDAO protocol, has joined the Velas blockchain.
Building on Velas means VeleroDAO can enjoy lightning-fast transaction speed and cost-efficiency without compromising the interoperability with Ethereum. Most importantly, VereloDAO is also an excellent example of how startup teams can benefit from the Velas grant program.
The program provides $100 million in rewards to support developers and creators in putting their ideas into action. It not only fuels the Velas ecosystem to grow but also accelerates building a diverse blockchain ecosystem. Join the rapidly growing Velas ecosystem now.
More about Velas
Website
Whitepaper
Grants Program
Telegram Announcement
Telegram Community
Discord
YouTube
Medium
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