Decentralized Autonomous Organizations (DAO) are one of the most interesting aspect of ethereum, but the set-backs of last year nearly shelved the idea until, perhaps, district0x.
The new start-up wants to create a front-end platform where you can just log in and form your own “district,” websites of sorts that connect to the ethereum network for payments and smart contracts, IPFS for storage, and Aragon for governance.
Through a new token called DNT, holders can participate in decision making regarding their district, allowing them to decide in a non-sybil manner such questions as whether there should be any fees, what projects to fund, or even how the district0x project runs.
“Each district will be a separate DAO on its own. Anyone can participate directly in the organisation’s governance by simply obtaining and staking DNT token into a district.
The main incentive to do so is that successful district DAOs will generate revenue and this revenue will be distributed to those who have staked DNT into that district,” Matus Lestan, district0x’s co-founder, told trustnodes.
Three districts are planned. A meme factory, a marketplace for ethereum names (ENS) and Ethlance. The latter is already live and working, with a number of projects looking for candidates.
Ethlance was launched at the end of January this year, according to Lestan, and already has 400 freelancers and employers with 150 jobs posted since then.
It has no fees, except any the ethereum network might charge, with payments operating through ethereum by connecting to Metamask or your own node.
“It is using our d0xINFRA libraries, but governance is not yet managed by DNT. This will come later as Aragon launches on main net,” Lestan says.
The fairly complex project is still in heavy development, currently focusing on building eight districts. The three named above and another five that will be chosen by the token holders.
It is open source, but lacks documentation at this point as developers are focusing on creating a number of smart contract templates as well as libraries and other components, with Lestan stating they aim to build “all aspects that are needed for fully functional dapps with a User Interface (UI).”
Eventually, non-technical users will be able to create their own districts by just clicking around, Lestan says, incorporating the smart contract templates or libraries as they may like.
The project received $100k from Coinfund in return for 5 million DNT vested over 6 months from the token sale. While BoostVC has offered them offices in US if needed while helping with the business plan and the rest, according to Lestan.
They have a soft-cap of $10 million for a token sale that is to start on the 18th of July, with it continuing for another two days after the soft-cap is reached, up to a maximum of $50 million.
If that maximum is reached, they will allow investors to convert up to 40% of contributions back into eth at the ICO price in case they are not happy with the development of the project or for other reasons.
Their whitepaper further says “after hedging 2 years worth of runway into USD, we intend to pay all wages to service providers in ETH, to pay all possible expenses with ETH, and to hold all idle funds in ETH in a multisig wallet indefinitely.”
So the project looks serious and since Ethlance appears to function well, the developers seem capable. The idea of districts looks interesting and if one can really create a Reddit like community there, with token holders managing its governance, it might become even more interesting.
Furthermore, instead of begging eBay to accept eth, they might be thinking of building their own eBay, further creating a community with vested interests in its growth.
They might also allow hyper-local communities that could, with the assistance of local councils, upgrade town-hall meetings to the 21st century.
All of it in a decentralized manner, incorporated with nearly free and instant payments, creating its own ecosystem of sorts within the wider ethereum network.