WHAT IS A DAO?

Decentralized autonomous organizations, or DAOs, are groups or bodies with a hierarchical structure. They are internet-based organizations, collectively owned and organized by their members.

DAOs allow us to collaborate with people all over the world without ever meeting them. Members can create their own rules and vote on key decisions using blockchain without the need for bureaucracy or hierarchy.
DAOs are open source because they are built on public blockchains. Because all financial transactions are stored on the blockchain, anyone can inspect their treasuries.

Vitalik Buterin described DAOs in a 2014 blog post as follows:

"A decentralized organization involves a set of humans interacting with each other according to a protocol specified in code and enforced on the blockchain, rather than a hierarchical structure managed by a set of humans interacting in person and controlling property via the legal system."

DAOs democratize organizational decision making in ways that publicly traded companies such as Amazon and Google cannot.

Many people believe that the Bitcoin network was the first DAO, but according to modern standards, Dash was the first "real" DAO because it allowed stakeholders to vote through its governance mechanism.

How Do DAOs Function?
DAOs, as the name implies, run autonomously by using smart contracts to execute the rules defined by their creators. Although the creators of each DAO write the initial code, it is up to the community to decide how the organization operates once it is launched.

In contrast, centralized organizations such as Amazon hold board meetings where shareholders vote on critical decisions and the company's direction. The CEO then ensures that the decisions are implemented.

A DAO, on the other hand, has no CEOs and no rigid hierarchy.

Every DAO token holder has the ability to submit changes, vote, and influence the DAO's direction simply by holding tokens. The more tokens you own, the more votes you have, and thus the more influence you have over the DAO.

When a change to the code or a new feature is approved by a vote, the DAO immediately changes. This enables code to perform routine operations such as hiring and firing, which are required by centralized organizations.

Why Should We Pay Attention to DAOs?(ADVANTAGES)

➡️DAOs offer entrepreneurs and innovators numerous long and short-term benefits that a traditional corporate structure cannot.

➡️➡️DAOs are trustless because they carry out business operations autonomously via smart contracts. They do not require you to put your trust in a single person or a board of directors. If a key developer or manager leaves, the DAO will continue to function.

➡️➡️DAOs are also resistant to censorship. They cannot be shut down forcibly by anyone, including the government or regulatory bodies. Even the DAO's creators cannot shut it down unless the community of governance token holders votes to do so. Nobody, regardless of position or authority, has the right to impose their will on a DAO.

➡️➡️DAOs also provide numerous long-term benefits. They enable anyone with a governance token to participate in the project's success by contributing to the DAO's mission in a variety of ways. These could include, among other things, creating new code or features, fixing bugs, or contributing capital to an investment pool.

✡️Rather than focusing on profits at all costs, DAO creators could encourage social incentives and increase participation and contributions from their communities if they establish and maintain a strong community culture.(limitations)

↪️Now that you're up to speed on DAOs, we'll look at the various verticals of DAOs in the current ecosystem, beginning with DAOs in the DeFi space.

DAOs for DeFi

Forbes called DeFi's 2020 surge in popularity a "financial revolution."
Hundreds of DeFi protocols have already been built on Ethereum, many of which function as DAOs.

Given the widespread media coverage of the DeFi revolution, it was only a matter of time before DAOs received similar coverage.

Despite the fact that DAOs are sprouting up in almost every business vertical, DeFi currently has the highest concentration of DAOs.
Examples is makerDAO.

MakerDAO

MakerDAO, as the name implies, is a DAO designed to facilitate the borrowing and lending of cryptocurrencies without the use of an intermediary. The protocol is based on the Ethereum network and manages loans on its platform with smart contracts.

What Is the Importance of MakerDAO?

You can use the Maker protocol to put Up cryptocurrency such as ETH as collateral for a loan paid out in DAI.
DAI is a USD-pegged stablecoin governed by the Maker platform and its community. DAI is already used by over 400 apps and services in the DeFi space, and it has a market cap of more than $9.3 billion, making it the fifth most valuable stablecoin.

• To obtain a loan through MakerDAO, you must first open a Maker collateral vault and deposit some crypto as collateral, for which you will be paid in DAI. Your vault is an Ethereum smart contract that holds your money collateral in escrow until you return the DAI.
• Overcollateralization is required to obtain a loan on Maker. This means you'll have to put up more collateral than the amount of DAI you'd like to receive. This may appear strange or even pointless at first, but the advantage is that you can exchange a risky asset for a stable asset to protect your downside.
• Adding new collateral assets for users to use
  Changing the risk parameters of current collateral loans
  Selecting emergency oracles.
  MKR holders hand-pick Maker's emergency oracles. They have the ability to initiate emergency shutdowns in order to protect the protocol from attacks.

The challenge of makerDAO

🏹The historic March 2020 Ether price collapse and subsequent network congestion proved to be a long-tail systemic risk to Maker at the time. The system essentially did not perform as intended and allowed some users to lose all their collateral.
🏹The issuance of new MKR after the fallout of March 2020 undid years of MKR value accrual and also illustrated the possibility of future MKR holder dilution in the future.
🏹Regulatory clarity around the MKR token is non-existent but a strong case can be made for it to be deemed a security under the US Howey Test.
🏹In a move to reduce dependence on solely Ether, Maker now accepts multiple assets as collateral, including centralized stablecoins and assets. Introducing centralized collateral may reduce price volatility but opens up new censorship attack vectors. Because DAI’s stability is predicated on over-collateralization and incentive mechanisms within the Maker system, it exhibits more volatility than its fiat-backed counterparts and rarely trades at exactly $1.

UNISWAP DAO

Uniswap is an Ethereum-based decentralised exchange (DEX), running on an automated market maker (AMM) model and offering peer-to-peer trading of various token pairs. The protocol was established in 2018 by a former engineer from Siemens, Hayden Adams.

What Makes Uniswap Important?

Uniswap’s governance token, UNI, launched in September 2020 and boasts the largest market cap of any DAO token — currently valued at over $12.5B. Like MakerDAO, trades on the Uniswap protocol rely on smart contracts, making it a transparent and trustless platform.
Uniswap relies on liquidity pools to ensure trades go through without delay. To ensure its liquidity pools remain, well, liquid, the protocol rewards users who choose to lend their crypto with a share of the gas fees from that pool.
There’s no registration required and no third party watching over the markets and individual transactions. As soon as you link your wallet to the platform, you’re ready to trade.

How Does Uniswap DAO's
Governance System Work?

By holding UNI tokens, you can vote on proposed changes to the protocol. Token holders who don’t wish to submit proposals or vote on proposals submitted by others can delegate their tokens to other users.

To propose governance actions, you must hold at least ten million UNI. Keep in mind that you don’t necessarily need to own this much UNI — other users can delegate their UNI to you.
Once a change is proposed, the community deliberates and vote on it for 3 days. If at least four million votes are cast, and a majority votes in favour of the change, the proposal is placed in a time lock for two days before being executed.

Some upgrades, like changes to the risk system, are subject to a longer 30-day delay as a failsafe feature.

Challenges of uniswap dao

In Uniswap v2.

🏹the biggest risk to a liquidity provider is impermanent loss.
...
Several factors affect potential user returns:
➡️the concentration and ranges of the provided liquidity,
➡️the pool's fee amount,
➡️the pool volume, and
➡️the price movement of the assets compared to each other.

Generally speaking, there are a lot of DAO projects in the market, both on etherum, polygon, Dash and other network. They all face numerous problems/challenges..
That is why #glitch_guild has come to close the gaps open by this project...

GLITCH_GUILD DAO

Glitch Guild - is a decentralized autonomous organization (DAO) aimed at equitable resource distribution and operation through the efforts of community members.

The Guild is more narrowly focused: it is in charge of attracting freelancers interested in working in the field of NFT, as well as participants interested in supporting artists and the project by participating in decisions that influence the project's future development.

The Guild seeks to reward participants based on their positive impact on the guild's development rather than their financial contribution.

The problem faced by other DAO :

↪️Because the entry level into cryptocurrency is frequently high, it may be difficult to attract talented individuals.

↪️↪️Project decisions are frequently made in private and are not discussed with participants.

↪️↪️↪️Profit-sharing is frequently absent in projects, and investors frequently lose money by investing in a token that is later devalued by project developers.

Solutions offered by glitch_guild

➡️The guild can assist them in learning how to use cryptocurrency and developing an NFT collection to broaden the audience and assist new artists.

➡️➡️Once a decentralized model is established in the guild, decisions about project development are made based on the opinions and votes of all participants.

➡️➡️The formation of a guild in which members can obtain the majority of their profits from the guild treasury.

WHAT IS GLITCH_GUILD TREASURY


The role of the guild treasury is to accumulate taxes and profits from

activities. The purpose of the accumulation is to increase the interest of the community and to further distribute the profits among the members of the guild.Profit distribution among the guild's

NFT Holders;

Usage of the treasury


🏹Purchase of various assets in the form of cryptocurrencies and participation in the development of other projects;

🏹Grants for the NFT artists and other projects development.


🏹Providing buybacks and future

fundraising rounds.

Governance Proposals and Voting Proposals :

This will be related but not limited
to the following subjects:


✡️Any guild member can give proposals through

the telegram group, discord, and website.

✡️Anyone can come and join the guild, for example, by purchasing an NFT or actively participating in the community's development.

✡️The core team and the first DAO participants will be the first members of the guild and will contribute to the project's early stages. Glitch NFT and token holders will eventually take over as guild administrators from the early team.

This project Has alot to offer...
I won’t advice anyone to miss out on this project.. Follow them on their social handles...

GLITCH GUILD
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