Peer Production on the Crypto Commons

Version 0.8

Toward a Commons Based Economy

dxDAO

dxDAO is a DAO that has been created to govern the DutchX protocol.

The DutchX is a fully decentralized trading protocol that allows anyone to add any trading token pair.

The DutchX was produced by Gnosis (Ethereum futarchy organization and token), who then wanted to hand the ongoing governance off to a DAO. To this end, they held a staking event (or “lock drop”) where interested parties could participate to gain Rep in the dxDAO. 50% of the Rep went to people who registered MGN tokens (earned by trading on DutchX), 30% to people who time-locked whitelisted tokens, 8% to people who time-locked ETH, and 10% to people who bid GEN tokens.

As of Oct 2019 dxDAO lists 400 members. Rep is quite concentrated, the top Rep holder has 10% and the top 10 holders control ~58% of the Rep. The history page is throwing an error right now so it’s not possible to look at how previous votes have gone and what they have been about. Open proposals concern de-whitelisting ANT, LOOM and REQ tokens as MGN generating tokens, they are all set to pass with unanimous approval from 8-16% of the dxDAO Rep tokens.

This is in line with dxDAO’s stated purpose, which is to make changes to the smart contracts of which the DutchX is composed. I’m not sure if there is a mechanism to redistribute dxDAO Rep over time, in particular to allocate some to new users of DutchX. The idea to put governance in the hands of the platform’s stakeholders is a good one, but allocating all of the voting rights at such an early stake would likely be sub-optimal in the long run, with early users holding all of the power to decide how the platform develops.

Last updated on 27 Oct 2019
Published on 27 Oct 2019
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