The President of the Syscoin Foundation, Jag Sidhu, has announced a new initiative focused on decentralized autonomous organizations (DAOs). The executive noted that the initiative would bring change into the DAO sector.
Speaking during the Binance Blockchain Week 2022 conference in Dubai, Sidhu said that this revolutionary DAO model would be implemented in 2022.
Syscoin launches DAOSYS
DAOSYS seeks to solve the issues present in the DAO sector by adopting an innovative model to use cryptocurrencies as capital investments. The Syscoin Foundation believes that DAOs should function like AMMs, where anyone can use the services.
By using an AMM model, the foundation can make the process easy, so it operates like a liquidity pool. Syscoin notes that a treasury management platform can be created even without a governance token.
DAOSYS will comprise a reference architecture adopting the Autonomous Service Engine that will boost the innovativeness of the Syscoin ecosystem. It adopts a risk mitigation strategy to create an antifragile market design.
DAOSYS will also be in a unique position to support digital innovation because it will support the development and growth of the Syscoin ecosystem. The innovative model for this DAO ecosystem is part of the objective of the Syscoin Foundation. It will support advancements in DAO technology to support innovation.
Syscoin wants to support the next stage of the evolution of blockchain technology. The protocol integrates the security infrastructure offered by Bitcoin and the programmable capabilities of Ethereum to boost scalability.
Syscoin changing the DAO sector
DAOs have become increasingly popular in the cryptocurrency sector. However, some people have said that these organizations fail to comply with the objectives of the cryptocurrency sector.
Currently, DAOs do not give users the freedom to manage their funds. Instead, these organizations manage user funds in a treasury controlled by a few people. Additionally, these DAOs do not uphold governance solutions geared to the needs of the stakeholders.
With DAOs, those who have governance rights do not have full control of the protocol. Instead, they offer an advisory role.