In a post today on your governance and research forums, The team behind decentralized finance (DeFi) aggregator AMM, 0x, announced initial plans to decentralize its governance by creating a “seed of community-owned treasury funded by 0x Labs.”
“As we continue our mission to create a tokenized world where all value can flow freely, 0x Labs intends to experiment with funding seeds from a community treasure managed by a DAO.” it reads in the post. “To establish the DAO, 0x Labs will identify a set of startup delegates who will shepherd the initial steps of decentralizing governance.”
According Theo Gonella, Platform Product Manager at 0x Labs and author of the post “Introducing the 0x DAO”, Longtime community members should not be surprised by the move to initiate decentralization.
“We originally shared our vision on progressive decentralization of the protocol in 2017, when we introduced ZRX, the 0x governance token,” he said. “We have always envisioned that ZRX holders would one day have full control of all aspects of the project, from managing the Community Treasury to conducting protocol updates.”
The move occurs during a particularly productive period for the project. A version 4 update on its mainnet led to a rally in the price of the native ZRX token last month, and last week 0x Labs closed a $ 15 million fundraising round led by Pantera Capital. The price of ZRX currently stands at $ 1.81, having risen more than 300% so far this month.
However, governance is not in the background in protocol development, as Gonella says fully open governance could be in place “by the end of the year.”
“Managing a community treasury is the natural first step. It will allow ZRX holders to become familiar with the governance system and fully experiment while still having some safe limits in place ”, He said. “The next step is to expand the scope of the system to all aspects of the protocol, including the updates that have been simplified with the recent release of v4 of 0x.”
As you move forward to establish a DAO structure, 0x joins an industry-wide effort towards decentralized governance.
The rival aggregator and AMM 1inch stopped DAO governance late last year, and today they announced a second round of airdrop for governance tokens in a novel vampire attack on Uniswap. In the same way, Balancer Labs recently opened a discussion about the yield farming version 2 plans to the community, as part of a larger effort to better decentralize its governance through the distribution of governance tokens.
Gonella says this era of community ownership beating DeFi is exciting:
“We are collectively walking into the uncharted territory of human coordination. The biggest collective challenge will be the transition from “committed” to “responsible” communities. With the incredible growth in public blockchain adoption and growing interest in open project governance, we are confident that the 0x community will become fully accountable in the years to come. “