Emergence of DeFi — Role of DAO’s
What is Defi?
Decentralized finance (DeFi) is an emerging financial technology based on secure distributed ledgers similar to those used by cryptocurrencies.
Since its inception, decentralized finance has been a major initiator of non-bank intermediary financial transactions. This is due to the fact that DeFi is a financial technology based on a secure decentralized ledger similar to that used in cryptocurrencies-a system that deprives banks and institutions of control over money, financial products and financial services. is.
Benefits of Defi
There many benefits and perks that come with Defi. They include -
- Lots of transactions are made and completed within seconds. All these are done with low fees and less hassle
- Self-management and complete security of funds and assets that should be kept in the bank
- Trust-less (permissionless) transactions at any time or day and of course, the ultra-fast transactions speeds
- Eliminates high fees usually charged by the banks and other financial institutions for making use of their services
We are confident that DeFi products and services will be fully adopted in the future, but for now, users need to address the flaws that plagued the ecosystem at the time. They include: Infrastructure issues, hacks, fraud, system instability, power requirements, carbon dioxide emissions, system upgrades, system maintenance, and hardware failures
DAOs for DeFi
To operate the DeFi app, you need “DAO” or Decentralized Autonomous Organization. DAO manages the DeFi app through individual decisions made by the distributed verification node that owns or owns enough tokens to approve the block. However, unlike public companies, companies, limited partnerships, and limited liability companies, DAOs do not have codes (ironically, DAOs are code creatures). In other words, there is no “model DAO law” like the “model business corporation law”. DAO is a “turquoise organization” within the corporate organization scheme that Frederic Lalou theorized in his 2014 book Reinventing Organizations. As a rule, they are legally unprecedented.
GLITCH GUILD DAO
Glitch Guild — is a decentralized autonomous organization (DAO) aimed to maximize the value of NFTs collection and education through research activities by finding and recruiting talented people and researchers for grants and incubations of NFT projects.
Glitch Finance is working to create a platform that is lacking in the DeFi industry, lowering barriers to entry for both everyday users and developers looking to extend their products and services beyond their current user base. I am. Phase 1 of the project focuses on building an unprecedented blockchain UX and a suite of sibling dApps specifically designed to provide a unique consensus structure that stimulates the network with a potentially unlimited reward value structure. Guess.
The Guild seeks to reward participants based on their positive impact on the guild’s development rather than their financial contribution.
Reward System for Glitch community
One way for finance [mainly composed of $ GUARD tokens and $ KNIGHT tokens] to grow is due to purchase and sales taxes (6% and 8% respectively) from the purchase of the guild’s native token $ GLTCH. is.
Another option is to pay a fee for purchasing a guild NFT.
There are several ways for community members to benefit.
- Buy $GLTCH, stake $GLTCH in the NFT farm which opens up the option to claim Guild Guild’s NFT and $GLTCH tokens.
- Hold the NFT which enables them to earn from Guild Glitch’s treasury pot.
- Selling the $GLTCH token.
- Staking your $GLTCH token in a $GLTCH-$BNB LP(Liquidity Pool). This gives you the opportunity to earn $KNIGHT. So accumulating $KNIGHT ensure you earn $GLTCH from the pool.
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