DAO : Community in Code
CZero DAO is a tool for building communities around the shared goal of carbon reduction. The rules governing CZero DAO are codified in the code of the smart contract and are encoded in the organizational structure called DAO itself. This is a distinctive characteristic of DAO from business and non-profit organizations whose rules are codified in paper charters and bylaws. In this sense, CZero DAO projects the underlying blockchain technology itself to the foundation of the organization, is decentralized, and operates in an autonomous P2P manner without three-party credit collateral. The DAO, the first DAO, stated on its website the principles that define DAO as follows. “DAO exists to pioneer new business opportunities for the development of participants, and operates only with the firm will of a ubiquitous, unstoppable code. “
How DAO Works
“DAO combines rules with code”
This would be the simplest representation of how DAO works. Because DAO is a set of rules that are eventually written in code and directly linked to governance structures. This concept is realized thanks to smart contracts, an application that runs automatically when the set conditions are met. The following is an example of a contract encoded in a CZero DAO smart contract.
When staking an NFT owned by the holder of the NFT, the total mileage issued according to the power plant’s daily Carbon reduction after the power plant is built (1 mileage per 0.0045941tCO2eq) * receives the equivalent of the share ratio (my NFT holding capacity/ 1,295,000wp).
(0.0045941tCo2eq greenhouse gas reduction is reduced when solar power plants generate 10kwh)
Governance Rules: “If more than half of the community approved, combine the proposed Proposal’s Request with DAO’s main smart contract”
CZero DAO’S SMART CONTRACT IS DISTRIBUTED AND EXECUTED ON KLAYTON BLOCKCHAIN. Instead of having to pay gas bills to blockchain networks, community participants can be sure that the smart contract code will eventually execute.In other words, there is no way to guarantee that any code will never run in the future without a blockchain, and thanks to smart contracts, DAO can operate in a decentralized form.
project investment decision mechanism of CZero DAO
The figure above is a simple example of how CZero DAO works. In this example, participants deposit virtual currency in DAO’s smart contract through NFT minting participation, and in return receive DAO’s governance NFT. Participants can then use governance NFTs to vote for investment projects proposed by the DAO community. The proposal passed by the vote will trigger the DAO’s smart contract and transfer the money from the Treasure to the wallet address of the default contractor who will be responsible for the project’s legal and practical responsibilities. And over time, as DAO’s investment performance (carbon reduction) occurs, compensation for the resulting revenue is allocated to the governance NFT holders (stakers). This reward can be cashed through the automated market maker (AMM) liquidity pool created by the default contractor.
CZero DAO
There are still many questions left about the legal treatment of DAO. But despite many outstanding questions remaining, DAO is sure to be incredibly innovative and will continue to exist. CZero DAO is also preparing to be a new breakthrough for existing organizations.
People who have invested in funds or securities will know. The fact that I don’t know how much money I’m spending and how much I’m making, and there’s nothing I can do even if I lose money.
Of course, it is true that CZero DAO also has a number of legal and technical problems to realize full decentralization right away. Low turnout among DAO participants can also occur. However, CZero will continue this long project journey, transparent and fair, toward the goal of carbon reduction through the combination of Dao members, along with efforts toward continued decentralization.
