Syscoin Developing DAOSYS, A Disruptive DAO Technology

Summary:
• The Syscoin Foundation has revealed that it is working on DAOSYS, a technology that could disrupt DAO significantly. Find out what it brings.

The Syscoin Foundation has announced that it is working on a project that could substantially improve the DAO ecosystem. Syscoin is developing a DAOYS, a DAO model centred on utilizing cryptocurrencies as capital investments. As per the model, Syscoin will design DAOs to function as Automated Market Makers (AMM). Creating these autonomous permissionless protocols will allow anyone to utilize DAOs as autonomous economic agents. Ultimately, the foundation hopes to address the many shortcomings of DAOs in the market today.

An example of the challenges in the DAO segment today is the disconnect between the intrinsic value of DAO protocols and the value of their governance tokens. Also, when it comes to protocol control, governance typically serves only as an advisory vote to multi-sig signers on the treasury. Additionally, currently, DAOs manage user capital in a treasury managed by a small number of individuals, thereby appropriating their users’ money. This is akin to being denied access to your cryptocurrency wallet’s private keys. Furthermore, current governance methods are mostly incapable of safeguarding stakeholder values.

As a result of the advancements by Syscoin, it’s now possible to integrate state-of-the-art smart contracts and DeFi in DAO designs. With the AMM paradigm, it is now possible to deploy DAOs as easily as a liquidity pool, making the procedure more comprehensive. Also, DAOSYS employs antifragile tokenomics and DeFi protocol connectors to create an integrated treasury management platform.

Also, as a result of the antifragile market architecture, we now have a funding mechanism with a stronger risk cushion. By employing Autonomous Service Engine, DAOSYS will serve as a reference architecture for self-sovereign asset management on Syscoin.

About Syscoin Foundation

Founded in 2014, Syscoin is a highly scalable decentralized open-source platform registered in The Netherlands. It leverages Bitcoin’s security and Ethereum’s Turing programmability via several Layer 2 technologies, including ZK-Rollups. The non-profit Syscoin Foundation is on a mission to redefine DAO technology. Ultimately, it aims to deliver the breakthroughs required to disrupt for-profit corporate and NGO financing models.