TL;DR: On ADAM, every vote of DAO members on a Proposal is directly recorded through the smart contracts. From Proposal to Execution, the entire workflow remains on-chain to eradicate scams and rug pulls.
Current Landscape of DAO
Decentralized Autonomous Organization (DAO) is a type of community who operates towards certain common goals without a central entity. A DAO and its treasury are managed and governed by all the community members. To achieve decentralized cooperation, members raise and vote on proposals to make decisions for a DAO.
Problems of the Existing DAOs
In the existing DAOs, executions and operations are not driven directly by the voting results of DAO members. When the members propose a budget item and vote on a platform, the process might or might not be on-chain. It is actually the executor of the DAO who would carry out the final decision on another platform of the treasury. Many popular cases of rug pull happened due to such a disconnection between the Proposal and Execution. Currently, this is one of the biggest loopholes of DAOs. In 2021 alone, cryptocurrency investors lost US$2.8 billion to rug pulls, according to Chainalysis.
Refer to our previous article — Rug Pull Should Be Stopped
Vision of DAO 2.0 — Everything on-chain
ADAM aims to achieve the vision of DAO 2.0, which enables a truly on-chain organization to be decentralized and autonomous. When DAO members create a Proposal to be voted, it’s already a smart contract on-chain. One of the proposal types is for treasury spending called Budget. Budget Proposal smart contract states the execution details like timeframe, amount, frequency, etc. The voting of the proposals is through the DAO portal on ADAM, which is on-chain too. After getting approval for a Budget, the Executor can spend money from the treasury or change the DAO’s setting within the pre-approved scope.
Benefits of everything on-chain
Safety problems have been the most discussed issue on Web3. Meanwhile, rug pulls and scams still happen every day in the world of DAO, because most of them are not operating in a fully autonomous way. ADAM has created a DAO 2.0 environment which is entirely on-chain and trustless. From proposal, voting, to execution, the whole workflow is guarded by smart contracts, making sure the DAO treasury and settings act according to the members’ will. All DAO members can safely utilize the community power to achieve the goal they all wanted.
Start your DAO journey on ADAM
On ADAM, a wide variety of voting mechanisms are supported, such as opt-in voting, pre-approvals, general voting, sub-category voting, and more. Every element you need for operating a DAO is available to be adjusted in a user interface. Starting a DAO on ADAM is simple, safe, and efficient for everyone. No codes, no rug pulls, you can create/ join a DAO here within minutes.
DAO 2.0 is now arriving on ADAM. Our team aspires to provide the safest and easiest solution for everyone to start a DAO. We will discuss how ADAM will address the common liquidity problem for DAOs in the next article — Provide Early Liquidity for new DAOs