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Commonwealth and Edgeware roped by Polkadot to form Stafi DAO

Photo of: Janeth Diamond
by Janeth Diamond

In a recent announcement by the Stafi protocol, a parachain of Polkadot has announced that it is now looking forward to ways that would bring in a major transformation of it into a fully operational and decentralized DAO. Ever since it was established, it has been seeking to establish a DAO where everyone associated as well as those who cared about the future of Stafi can engage in its governance. It has now reportedly built tools that would facilitate DAO governance for its community members. This also marks the official entry of Stafi’s treasury governance in its exploration stage.

The DeFi protocol will be partnering with Commonwealth Labs and Edgeware in order to assist to help them through this process. In fact, it has already been incorporated on the commonwealth platform in addition to seven other Polkadot projects. 

Gradually and assuredly Polkadot is emerging as one of the biggest challenges of Ethereum from the perspective of DAOs. Most of the DAOs on Polkadot are already powered with a set of tools that are in use by its Ethereum counterparts. What also stands out is the fact that most of these projects are operative on a second layer which enables them to use their own tokens for transactions in addition to incorporate additional security features. 

Commonwealth Labs(core development team of Edgeware is considered as one of the most professional DAO solution providers in the Polkadot ecosystem. It is already in cooperation with Plasm, NEAR protocol, Kusama, Kulupu, and several other projects. The cooperation with Commonwealth Labs to build the DAO is only the beginning of its close cooperation. In the future, there are plans to introduce rToken into Edgeware together and design eEDG tokens in order to release the liquidity of stakes EDG token assets. It will help to increase the staker’s willingness to participate in the EDG staking which could go a long way in improving the overall security of Edgeware.

In its DAO implementation, on-chain proposals will require a major stake of their native FIS token. The reports suggest that the protocol’s governance structure might just be the beginning of the establishment and further attempts will be taken to ensure it goes into full decentralization. 

In order to maintain a fine balance between efficient development as well as community autonomy, it will be segregating Treasury’s DAO governance into the following stages:

  • In the first stage, the DAO governance is headed by foundation governance (StaFi team) and complemented by the community meaning that the community will have a minimal role. 
  • In the second stage, the Treasury will be mainly governed by the community, with the assistance of the StaFi team.

The DAO governance will be divided into two parts in the transition phase, namely off-chain discussions and on-chain governance. The on-chain voting part is not slated to open immediately as the rules are not constructed yet. But it has encouraged its community members to take part in the various off-chain discussions and also collaborate with the team’s developers so that they could provide them with the necessary feedback.