💡DeXe DAO April Update

This April, DeXe continued integrating the front-end with the smart contracts, fine-tuning the off-chain voting mechanisms, and implementing external auditor feedback to make the code even more hack-proof.

✅Contributor Dmytro Kotliarov talked about how DAOs affect employee rights (in Ukrainian), shared the lessons he learned during the 1+ year of Russia’s invasion of Ukraine, explored the topic of how DAOs can affect the startup ecosystem, and did an AMA with our friends at Lysithea Ventures. Meanwhile, Yuri Hotovyi, dissected the Silicon Valley Bank situation.

📌Speaking of outreach and education, DeXe DAO now has its own substack — subscribe here to get all the latest from DeXe. And if you haven’t noticed, we’re now publishing a Have you seen our weekly DAO and DeFI digest?

📖Our articles looked into Arbitrum’s AIP-1 fiasco, Snapshot off-chain voting, and on-chain voting.

📊State of the DAOs - May 2nd

DAO treasuries lost $630M but DAOs and members growing.

📝DAO News

▪️DAO Tokyo brought together crypto leaders.

▪️CityDAO is building a decentralized blockchain city.

▪️Wyoming and Utah adopting pro-DAO legislation.

▪️Airbitrum gave 90 million ARB to 125 DAOs.

▪️OlympusDAO deploying OHM LP pairs on Arbitrum.

▪️Angle DAO is relaunching its borrowing module on multiple networks.

▪️Gitcoin grants are back and its DAO just approved spending $95k in GTC on funding.

👥DAO Proposals

This week’s two high-importance proposals are by Gelato (allocating funding for later) and the Friends With Benefits DAO (splitting into a for- and non-profit entities).

There are 23 medium and 34 low-importance proposals active this week, most about Parameters (21) or Team (20).

🔝Most Active DAOs

▪️loveeachother
▪️PancakeSwap
▪️Arbitrum-named DAOs
▪️Rari Capital DAO
▪️2021eth

📖Details (with stats, pics, and links) in the full article 👉 here

🔥Here's another quick way to earn crypto with DeXe.

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DeFining news: May 5th, 2023 📢

▪️SUI token dropped 70% from its launch this week.

▪️Bitcoin fees are hitting multi-year highs, txs hit a record high, and BTC.b is unseating WBTC in “bitcoinlike” token popularity.

▪️Ethereum’s Dencun update is in the final stages of planning.

▪️The US White House wants to develop international standards for distributed ledger technology (DLT).

▪️Montana’s governor signed a pro-crypto mining bill into law.

▪️TUSD briefly depegged by going up by 20 cents.

▪️Curve, deployed the crvUSD stablecoin on Ethereum.

▪️Lens, unveiled “Momoka” — its Layer 3 solution for off-chain storage.

▪️Franklin Templeton (part of a $1.4 trillion global investment firm) has opened a stablecoin fund on Polygon.

📖For more details, see the full digest 👉 here

⚠️DAO Money Heist: How thieves are draining DAO funds in plain sight

DeepDAO’s candid interview with a “professional DAO drainer” showed how some scam DAOs by appearing legit to the more gullible of the DAO’s members.

This is generally true because:

▪️Most people don’t read proposals carefully.
▪️Many will vote for anything just to show activity in hope of some future reward (like an airdrop).
▪️There is little vetting of DAO contractors.

🔹Social engineering of trust

Money grabbers infiltrated the DAOs so deeply as to become trusted moderators and community leaders.

🔹Fighting back

A lesson can be learned from sniping bots, which plagued AMM launches until 111PG came in and made the game not worth it.

🔹Trust shield

One option is to have a DAO of Experts with special voting power benefitting themselves and those delegating to them.

📖 Read about the details of draining treasuries and possible countermeasures in the full article 👉 here

📊State of the DAOs - May 9th

With the overall number of DAOs stagnating, DAO treasuries lost $1.5M while membership keeps steadily growing.

📝DAO News

▪️MakerDAO launched Spark Protocol.

▪️Chainway’s Proof of Innocence tool recently adopted by Railgun DAO.

▪️Aave DAO’s v3 launched on Metis.

▪️Aragon banned 6 members for, among other things, questioning leadership authority.

▪️Merit Circle DAO’s MIP-25 proposal seeks to formalize a Constitution.

▪️Jack Dorsey is launching a decentralized P2P marketplaces platform.

👥DAO Proposals

This week’s sole high-importance proposal is about Aaave’s safety module.

There are 24 medium and 39 low-importance proposals active this week.

Most proposals concern Team (31), Parameters (18), Governance (9), and Token (4).

🔝Most Active DAOs

The Top 5 by proposal activity:
▪️Iwan
▪️PancakeSwap
▪️2021eth
▪️AlexDAO
▪️Rari CapitalDAO

📖Details (with stats, pics, and links) in the full article 👉 here

And just like that, the latest DeXe social activity is over. 🏁

✅10 people won 20 USDT each. Were you one of them?

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Holy DAO! ⛔️ Not every proposal is the same. So why have the same quorum size, voting length, validator settings, etc. for a routine technical proposal as for one deciding the fate of 50% of your treasury?

✅ Instead, with DeXe's DAO constructor, you can set custom parameters for each proposal type, giving each proposal type the best chance to succeed and to benefit your DAO!

Customize:
✔️voting length
✔️quorum size
✔️validator settings
✔️automatic reward distribution for growing the DAO, and more.

Give each proposal type the beat chance to succeed and to benefit your DAO!

DeFining news: May 12th, 2023 📢

▪️Tether (USDT) reported a record reserves surplus of $2.4B.

▪️U.S. Department of Commerce sided with Coinbase against the SEC. And Texas even wants to include the use of digital currencies into the state’s Bill of Rights.

▪️As Bitcoin gas fees spike, BSV and other Bitcoin forks gain in price.

▪️There are more ETH staking deposits than withdrawals now.

▪️Ethereum’s Beacon chain stopped finalizing transactions for half an hour but then recovered.

▪️Deloitte is going to use the Kilt protocol (based on Polkadot) for its KYC verification processes.

▪️Sushiswap is launching concentrated liquidity on 13 blockchains in a fork of Uniswap’s v3.

▪️China is opening a center to train half a million distributed ledger technology (DLT) specialists.

▪️MetaMask will now allow users to buy ETH via PayPal.

📖For more details, see the full digest 👉 here

📌Corruption is the scourge of society at all times. It seems that no amount of regulation and control can defeat it. But we think DAO and blockchain have a good chance 🔥

Why? Read in our in-depth study:

📖 DAO Against Corruption. How to defeat society's worst sin?

What you can learn from Impact DAOs

📍Tue, May 16, 2023
🕟16:30 UTC

What can you learn from Impact DAOs? Join us for a discussion with Deepa, the author of the Impact DAO Book.

✅Tune in for a chance at part of the $100 in $DEXE Prize Pool, make sure to follow all conditions to qualify!

❕Join!

❕❕Is most DAO governance fake? Study of nonsensical DAO activity.

Tens of thousands of wallets making and voting on proposals have zero governance value. What can be done about these nonsensical DAOs?

📌The situation is bad: Top 5 of the most active DAOs includes a lot of mostly unknown DAOs.

➖For example, Iwan DAO had 136 proposals in the past week, all of them about… logging weight.

➖2021eth had 47 proposals… all of them are spam about memecoins, NFT drops, and the like. $PEPE, of course, is front and center.

Not surprisingly, 2021eth has zero tokenholders and nothing in its treasury.

✅If Iwan and 2021eth want to use a Ferrari to drive around a mini-golf course, fine. But this should not count as a DAO for compiling statistical sets of DAO governance. The data we are seeing is littered with nonsensical DAOs.

📖How to fix this? Find out in the full article 👉 here

🔔 In just 3 hours we'll host Deepa of ImpactDAOs for a DAO Talk about effective and impact DAOs. Must hear for anyone who ever wanted to be in a DAO.

Tune in on our Twitter at 16:30 UTC.

📍Details here: https://link3.to/e/6coaok

PS. Yes, there will be prizes via Link 3 🎁

📊State of the DAOs - May 16th

DAO treasuries lost $1.8M. Member involvement is up to 31.8% now and 2.2% DAOs have 100+ members.

📝DAO News

▪️Arbitrum DAO has already earned 3,350 ETH ($6.2M) in transaction revenue.

▪️DeusDAO recovered $5.5M out of $7M stolen.

▪️BitDAO is proposing to get rid of the BIT token.

▪️Aragon is taking measures to be compliant with Swiss regulations.

▪️MakerDAO has an Endgame now.

▪️Decentralizing oncology may be able to help collab better on cures and treatments.

▪️Researchers in Singapore designed a more efficient DAO voting scheme.

▪️BitMEX cofounder believes consumers care more about convenience than decentralization.

👥DAO Proposals

No high-importance proposals this week, just 27 medium and 36 low-importance ones.

Most proposals concern Team (32) and Parameters (22).

🔝Most Active DAOs

▪️Iwan
▪️Pao Pao
▪️guodanpi
▪️2021eth
▪️PancakeSwap

📖Details (with stats, pics, and links) in the full article 👉 here

💡Flexible reward system

Instead of figuring out each time how to motivate your DAO's active contributors, you can set up an automatic system as flexible as your needs.

Automatically reward members for:

✔️voting
✔️proposing
✔️executing proposals

📌Proper incentives encourage DAO members to build, to get involved in ways that are beneficial to them individually and the DAO as a whole.

Let's reward effective activity — not hinder it!🔥

DeFining news: May 19th, 2023 📢

▪️Institutional investors are getting easier access to DeFi governance via Anchorage’s custodial accounts.

▪️The EU introduced a clear Markets in Crypto Assets (MiCA) crypto framework.

▪️Blur’s NFT-backed lending platform, Blend, has already done 100k ETH of volume in just 17 days post-launch.

▪️Ledger’s wallet recovery feature faced a lot of backlash.

▪️A bankruptcy judge excluded 48,000 of BlockFI’s interest-bearing account holders from the settlement.

▪️Gala burned 21 billion team tokens to avoid fears of a token dump.

▪️Worldcoin is having to modify its verification methods as Chinese users are simply buying random strangers’ iris scans - for ~$30 each - to get in.

▪️Uniswap is coming to Polkadot via the Moonbeam parachain.

▪️LayerZerohas launched a $15M bug bounty in partnership with Immunefi.

📖For more details, see the full digest 👉 here

💡Case Study: Passion DAOs

Analysts often talk about strong fundamentals. Rarely does this mean the passion of the founders and of the community. And that’s a shame since DAOs built on passion are poised to succeed in both bull and bear markets, keeping cohesiveness and effectiveness to achieve common goals.

📌We took a look at the DAO landscape and profiled a couple of passion-driven DAOs and one that may be more of a fad. What did we find? And what to do when passion runs out?

📖Find out in the full article 👉 here

📊State of the DAOs - May 23rd

Total DOA treasuries rose by $1.3B and members by 13.3k.

📝DAO News

▪️A governance attack on Tornado Cash has a plot twist: the hacker proposes to give back control.

▪️Aragon restructured its $177M treasury into developer grants to prevent a governance attack.

▪️Lido’s community is considering staking and/or buyback options for its LDO token.

▪️The Founder of MakerDAO wants it to have its own blockchain along with new MKR and DAI tokens.

▪️Some investors are suing Bancor DAO for failed promises of Impermanent Loss protection.

▪️The BIT token will become MANTLE, as BitDAO’s BIT-21 passes.

▪️A bug in Aave v2 on Polygon is getting some user assets stuck.

👥DAO Proposals

No high-importance proposals but 23 medium and 41 low-importance ones, mostly Team (36) and Parameters (16).

🔝Most Active DAOs

▪️Iwan - 159
▪️Pao Pao -147
▪️PancakeSwap - 41
▪️Rari Capital DAO - 26
▪️Fantom - 23

📖Details (with stats, pics, and links) in the full article 👉 here

🌪Wow, what a storm of a week for Tornado Cash, right?

First, someone hacked their governance, tricking the DAO's members to vote in favor of giving the hacker full control (via giving him 1.2 million votes vs. everybody else's 700k).

Then the hacker put up a proposal to restore the governance to the old way, basically giving back control.

❓Will the hacker actually give up on the total control of Tornado Cash (and its treasury)?

Or is this a ploy to slow down the selloff of the TORN token (and raise its price) so the hacker could cash out more?

✅Regardless, this is a big flashing warning for all DAOs to be careful with their governance mechanism. Whether via validators, careful quorum settings, or other measures, the need to protect against malicious proposals is crucial for the viability of DAO as a governance form.

📌A DAO is an almost perfect system of organization. But there are still so many practical pain points in the structure of a DAO that we need to solve.

In the article for Substack, we looked at the main Achilles' heels of DAOs. And what can be done about them.

📖 Read more 👉 here

💡Check this out: a member submitted a new proposal for our DAO related to legal strategy.

❕Read through it - what do you think? The comments are open. Any proposal benefits from the community’s constructive input.