DXdao (or dxDAO) started as a radical experiment in decentralization. Two leading Ethereum projects, Gnosis and DAOstack, conceived of the idea of a DAO that aimed to be decentralized from inception. This idea, which eventually became DXdao, hinged on distributing voting power (Reputation or REP in DXdao) to as wide a distribution of participatory Ethereum addresses across the globe. These addresses, and not Gnosis or DAOstack, would govern DXdao and decide its future. In total, 399 addresses received REP during the initial launch in the spring of 2019.
DXdao is a 100% on-chain organization, so governance and development hingest on building capabilities for the DAO itself to interact with the rest of the world. All DXdao products and the DXdao website are owned and governed by the DAO itself through the ENS name system. Taking down or changing this website requires a passed proposal from DXdao. DXdao currently operates three bases, one on Ethereum mainnet, xDai and Arbitrum One, and always interested in expanding to new chains that match its decentralization ethos.
DXD and The Treasury
DXD represents the liquid financial value of DXdao. It was launched through a bonding curve contract in May 2020, with a portion of the ETH proceeds deposited in the DXdao treasury. DXdao’s treasury is over $50m, spread across ETH, stablecoins and other assets. It’s meant to fund product development and is also deposited into DXdao products themselves.
Frequently Asked Questions
- What is DXdao all about?
DXdao is a decentralized collective that builds and governs decentralized products and services for the world. It aims to be an open community that reaches consensus in a transparent and fair way.You can read more in the DXdao Manifesto.
- Who makes up DXdao?
DXdao is made up of stakeholders, otherwise known as "reputation holders". Your proportion of the dao\'s reputation determines your voting weight. This reputation is owned by Ethereum addresses that collectively control the set of smart contracts that is the DXdao, and the projects it administers. Some DXdao members assert themselves as the owners of certain addresses, other address owners are anonymous.
- How does one earn Reputation (“REP”) in DXdao?
One can earn Reputation in DXdao by contributing to DXdao itself. This is done by a proposal which is put to a vote. For example, a full-time contributor requests 0.1667% of reputation (to their Ethereum address) for work completed. DXdao members can then cast on-chain votes weighted by reputation. If the proposal passes, the new member is granted reputation.
- How does decision making happen in DXdao?
DXdao reputation holders vote on proposals on-chain, using DXdao's governance interface, DXvote, and holographic consensus. This means some proposals can pass by a relative majority, and other times an absolute majority is needed. This depends on the type of proposal, and if the proposal is boosted by reaching a specific staking threshold. In general, though, the DXdao coalesces around ideas and achieves rough consensus through off-chain, less formal methods, such as weekly calls, discussion forums, and chat groups. All of these are open to the public.
- What is the difference between DXD and Reputation (“REP”)?
DXD is the economic token of the DXdao. It is a transferable ERC20 token which grants its holders a share of DXdao profits, as well as certain privileges or premier services on DXdao-owned products. Reputation (“REP”) is the governance mechanism that controls the DXdao. It is non-transferrable and holders have a right - and implicit duty - to govern and direct the collective.
DXD and reputation holders need not overlap, but it is likely some part of each stakeholder group will hold both to more tightly couple their interests. As holding DXD is the more passive path - and the one tied to economic success - it will likely be the more widely owned stake in the system.