Tokamak Network DAO Governance platform

Tokamak Network DAO Governance platform

The beta launch

Tokamak Network recently announced its DAO beta launch, where TON holders are able to directly participate in the decision-making process of Tokamak Network. The beta launch is to test the platform before the official DAO is developed in a more improved and decentralized way. The beta experiment will allow the platform to make changes depending on the community activities and suggestions.

The benefits of a DAO to users

Although Decentralized Autonomous Organizations have made quite the fuss in recent years, few have delivered what was promised and expected of them. DAOs allow anyone to be a venture capitalist and have a say in the overall direction of the organization.

The creation of Tokamak Network DAO is a step in this direction, giving hope to users that their ideas matter and will be heard. As a platform focused on partnerships and cooperation, Tokamak Network has made various collaborative decisions that have propelled it ahead. The creation of the DAO allows token holders to be part of this process by voting on the partnerships they deem most beneficial.

Users also have a voice in deciding the products or features to be given priority on the roadmap. Therefore, market needs are considered by people who are active on it each day, and can shape the platform to offer more. Additionally, token holders can vote on additional team members who can contribute to the roadmap in positive ways. In a decentralized and free market, talented people might fail to get opportunities to create products for the market. However, with the DAO, they have an opportunity to serve in an innovative platform like Tokamak Network.

Profit distribution in cryptocurrency platforms has been directed by the developer team. This means that the initial idea might not change even when the project changes over years of being in the industry. However, with a DAO, token holders have a say in how profit is distributed based on the performance of the token in the market as well as growing ecosystem needs.

Although many decentralized protocols had DAO governance as part of their features, most have failed to deliver. However, after being operational for a short period, Tokamak Network has already released a beta version in preparation of the fully functional platform. This can be used as a show of commitment from the team, to honor its vision and promise to token holders as well as the entire industry.

Tokamak Network Value Proposition

The development of Tokamak Network was fueled by a mission to provide different projects a platform where they can work together towards the achievement of a common goal of improving Ethereum’s readiness for widespread adoption. This is after various projects launched to provide varying solutions to Ethereum’s challenges but instead of helping developers and project teams, they ended up costing more time and money, and competing against each other.

With the creation of the tokamak Network, developers no longer need to move from one layer 2 protocol to another in search of the right features for their project. Instead, these layer 2 protocols have been incorporated in a single platform allowing users to benefit from their solutions without the extra effort, resources, time and money previously required to build Dapps on each layer 2 solution.

Tokamak Network has not only simplified the process for developers but also for the layer 2 protocols. These solutions are now able to access a larger user base as compared to previous periods, where they were competing against each other, risking losing users in the process. Additionally, without the added cost, more developers can try to build dapps using different layer 2 protocols in the testing process, allowing these networks to experience more traction.

Tokamak Network’s plasma uses the same model as Ethereum, unlike the old plasma solutions that had a different transaction execution model. With these old solutions, additional effort is required when porting dapps on Ethereum to the plasma chain. With Tokamak Network however, existing dapps can be migrated without additional effort.

Although many projects have been built to improve scalability of Ethereum, Tokamak Network is the only platform that has taken into consideration the harm that these projects could be doing and created a solution. Therefore, more robust dapps can be built, benefiting users, developers, layer 2 protocols, and the Ethereum blockchain.

TON token Performance

Data from Coingecko shows the current price of TON to be $13.08. The price has gone up by 6.3% in the last 24 hours and by 52.6% in the last 30 days. This same token was trading between $2.30 and $3.17 in Nov. 2020. Although the token has experienced a loss from it's all-time high of $30.51 on Apr. 2, the current price is high especially for early adopters and for a new project.

Within just a few months, TON has achieved a growth in value that many tokens in the market have failed to gain in years of trading. The growth is significant of the project’s solution, and users’ enthusiasm to trade and interact with the platform. It also shows the potential the platform has in the market, and support it is getting or should expect from users in future.

TON is used as an incentive to correctly decentralize the Tokamak Network plasma chain. Therefore, the service operator must deposit TON to open the plasma chain. When the opened chain runs properly, the deposit is gradually increased. Where there are technical issues in the chain, the user who finds the problem and raises the issue is rewarded with the deposit amount.

TON is also used to charge Stamina, a transaction fee in plasma chain which is recharged after a certain period, Stamina does not disappear until it is withdrawn.

How do you rate this article?




Seeking out the best Decentralized Crowdfunding and Fundraising Platforms

Blockchain Analysis
Blockchain Analysis

Insights on Blockchain & Cryptocurrencies

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.