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Blockchain Explanation
What is Decentralized Autonomous Organization (DAO)
Ji Sheng Tan
Ji Sheng Tan
January 15, 2020
2 min
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What is DAO, how does decentralized governance works?

One of the major features of digital currencies is that they are decentralized. This means they are not controlled by a single institution like a government or central bank, but instead are divided among a variety of computers, networks, and nodes. In many cases, virtual currencies make use of this decentralized status in order to attain levels of privacy and security that are typically unavailable to standard currencies and their transactions.

What Is the DAO?

The DAO was an organization that was designed to be automated and decentralized. The DAO was unaffiliated with any particular nation-state, although it made use of the Ethereum network.

Dao is an automated system and a crowdsourced process having decision-making power to manipulate investor’s funds & eliminate human error. Fueled by ether, the DAO was designed to allow investors to send money from anywhere in the world anonymously.

In Trivechain, the DAO is fueled by TRVC and facilitate with a group of Masternodes owner, the DAO is designed in such a way that allows anybody in the community to place a certain amount of TRVC to create a proposal and allow the community to vote on the proposal. Every masternode can vote either agree or disagree on a proposal during the voting period. If the voting is passed through with the majority of them voting to agree, the TRVC is distributed to the person that proposed the idea. The proposal can be to run a marketing campaign, operate a mining pool, build a website containing information and even building innovation on top of the current core. The DAO was designed to allow masternodes to vote for the development direction of the public chain.

Decentralized Governance System

It allows for a large network of computers to continuously agree on certain things every few seconds such as the balance of tokens, and more generally a set of programs and their internal states.

In any decentralized governance system, there is a principal tension between resilience and scalability.

In this context, resilience means the tolerance and even resistance of a governance system to faulty behaviour: whether fraudulent or simply due to poor consideration. By scalability, we mean the ability of a governance system to process a large number of decisions in a given period, and even increase its rate as more agents participate in the network.

Decentralized governance is a critical element for DAOs and DApps. The greatest challenge of distributed consensus is to enable efficient navigation of the collective attention, effectively charting decision space and picking up the important decisions to have it focused on. Such a mechanism would resolve the tension between the excessive output of collective attention on certain things, to achieve greater efficiency; and insufficient collective attention on other things, for the sake of better consensus. Monetization of attention, complexity and coherence are necessary principles to achieve the two goals simultaneously and form a truly scalable governance system, with which thousands of collaborating agents would process hundreds of decisions a day, safely.


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Ji Sheng Tan

Lead Trainer

Tan Ji Sheng is an all-rounder technology expert with diverse experience revolving around strategizing product development roadmap and architecting solutions. He has helped clients plan and build applications, data visualisations, running artificial intelligent experiments, building the data pipeline and achieve cost optimization by making use of solutions on the cloud.

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Smart Contract (Solidity)
Solution Architect
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