XAO DAO Poised to Revolutionize XRP Ledger with Decentralized Governance
Move over, traditional finance—XAO DAO is flipping the script on XRP Ledger governance. This isn't your grandfather's boardroom democracy.
The decentralized juggernaut rolls onto XRPL with promises of community-driven decision-making—no suits, no red tape, just code and consensus. Will it finally make good on crypto's 'power to the people' mantra? TradFi bankers are already clutching their pearls.
Here's what's breaking:
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Protocol Power Shift
: XAO DAO's smart contracts cut out middlemen, putting governance tokens directly in users' hands
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XRPL's New DNA
: The ledger could morph from enterprise-friendly to radically decentralized overnight
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The Cynic's Corner
: Because nothing says 'financial revolution' like watching degens vote on treasury allocations between memecoin trades
One thing's certain—if this works, the 'decentralized' in DeFi might actually start meaning something again. Place your bets.
How will the XAO DAO function
While the XAO DAO post focused on what the DAO brings to XRPL, popular XRP investor WrathofKahneman on X explained its purpose. He stated that XAO DAO is expected to provide a governance mechanism for distributing the 1 billion XRP that Ripple allocated to develop the XRPL ecosystem.
So far, Ripple has been handling the allocation of the grants to projects on XRPL. However, a newly formed XRPL Foundation is now set to take over that responsibility, and the Foundation will use the XAO DAO governance system to determine who gets the grant.
Interestingly, the XRPL Foundation’s bylaws give XAO DAO a board. The DAO, along with XRPL Commons, XRPL Labs, and Ripple Labs, are the founding members of the XRPL Foundation.
Meanwhile, XAO DAO founder Santiago Velez has explained that the DAO governance application will use both XRPL and the XRPL ethereum Virtual Machine (EVM) sidechain. While the XRPL will be used to record membership of the LLC, the sidechain will be used to mint and burn governance tokens for each proposal and vote.
Decentralized governance could boost XRPL DeFi
With XRPL now set to support decentralized governance, many people in the XRP community have welcomed the news as a big step towards full decentralization. For them, it is a sign of maturity and could finally boost innovation and DeFi activity on XRPL.
While the network has been around for 13 years, it has struggled to generate significant activity compared to its peers. However, recent developments suggest that this could change. Since the XRPL APEX Conference, the network has seen several integrations and more upcoming products.
Circle USDC recently expanded to the network, while ONDO Finance also launched tokenized US treasuries. Its EVM sidechain is also set to deploy soon.
Meanwhile, XRP itself is also positioned to increase adoption by TradFi and DeFi. On June 18, asset manager 3iQ launched an XRP exchange-traded fund (ETF) on the Toronto Stock Exchange. Several DeFi protocols are also developing products around XRP, and Flare Network plans to introduce FXRP on its mainnet. Firelight protocol also wants to launch a liquid staking derivative of the token stXRP.
All the interest and developments concerning XRPL and XRP have already boosted the network activity, with a 3-month average for active addresses now at 295,000. XRP has also held steady despite recent volatility and is up more than 1% today.
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