DAO Field Welcomes PUGG Virtual Citizen’s Metaverse Governance Experience
In recent years, data leakage incidents and management organization problems have frequently been reported in centralized platforms such as Facebook, Lazada, digital asset exchange OKEx, etc. More and more users become aware of the disadvantages of the centralized platforms which control huge user information and have absolute dominance of user data and in order to maximize their own interests, would tamper with platform rules and increase management fees regardless of user opinions and even sell user data.
Due to the “pyramid” management structure of the centralized platform, platform users are allowed to neither do anything about decision-making of its major matters nor fully know the data of themselves to ensure their own privacy and security… This platform operation rules are undoubtedly unfair and can hardly be long-lasting.
Is it possible to completely abandon the “pyramid” mode and establish a completely fair, safe and autonomous platform for all users to be? Just imagine that users from all over the world jointly decides the organization, management and coordination of the same ecosystem according to a set of transparent sharing rules. Without insiders or autocracy, it allows all its members to have full power to govern it and making decisions in it… Isn’t that cool?
The DAO is converting this imagination to reality.
1. What is DAO?
DAO, short for Decentralized Autonomous Organization, is a code collection that runs on the chain and relies on blockchain technology and smart contracts. Because it runs on the blockchain, DAO is naturally decentralized.
Decentralization means that DAOs are not governed by any individual or any entity, the rules and governance of each DAO are encoded in smart contracts on the blockchain and changing any established regulations is not allowed unless it has been voted by DAO members. The voting rights are owned by each DAO member, who jointly exercise decision-making rights on the principle of equality and openness.
2. Characteristics of DAO
Since DeFi became suddenly a hot topic in public, DAO has gradually recovered from the impact of the 2016 hacking incident. Up to now, with the development of blockchain technology and the widespread use of DeFi, DAO has regained its mission and has been widely regarded as the orientation of the future of human progress, like the metaverse.
Its advantages mainly consist of three factors.
One is fairness. In DAO, all members are anonymous and any of them can build a reputation in the DAO without revealing their identity so that they are on a fair playing field. Thus it is easier to reward individual contributors in DAO and it is unnecessary to cater to well-known members who have a large number of followers.
The second one is transparency. Although each of traditional public companies is required to have independently audited financial statements, its shareholders can only see a snapshot of its financial health actually. However, balance sheets of DAO are shown on the public blockchain, so DAO and any of its transaction are completely transparent at any time. Moreover, corruption and audit problems in it are much less possible to occur because any of its member can view all of its project actions and see where its funds are going.
The third one is the globalization easier to realize. Compared with traditional companies, DAO is generally easier to globalize and has a lower barrier to entry for new members. Thanks to its higher transparency and lower barrier to entry, members who disagree with the rules and actions will have lower costs when transferring to another DAO. Having similar missions, DAOs may need to compete for membership and be encouraged to be as transparent as possible, thereby reducing collective renter-seeking costs and further attracting top-class members.
Of course, DAO must also overcome a series of disadvantages in the progress of development. For example, problems such as a low member quality and too much noise may occur due to excessive recruitment, and they are supposed to be solved by continuously strengthening the DAO screening mechanism and adjusting the amount of its token.
3. Discrimination of DAO and DAO application case
At present, DAO has been applied to many terms such as investment, charity, fundraising, lending, etc. The three factors below are necessary to establish one DAO:
1) A joint goal and a type of group culture (such as group mission, vision and values) on which can be agreed with strangers;
2) A rule system (including creation, governance, incentives, etc.) which can be agreed on with strangers and is placed on the chain through blockchain technology;
3) Tokens set to be related to all participants’ interests and form incentives for all.
In a word, if a crypto project is governed in a decentralized way with its direction and its parameter settings that can be voted on by its token holders rather than decided entirely by a centralized team, it can be called a DAO.
For example, MakerDAO built a decentralized stablecoin and the organization’s DAO token holders are able to govern the system and vote on its settings such as fees.
Another example is Yield Guild Games, a DAO having NFT artwork and virtual game items, makes its players also investors through allowing them to purchase NFTs in games such as Axie Infinity, League of Kingdoms and The Sandbox.
There are also DAOs organized around work, such as Raid Guild, a decentralized group of builders and designers, and MetaFactory, which sells the products around an organization of fashion and culture.
As a management application type competitor based on blockchain, DAO not only provides a more transparent collaborative environment for various DeFi platforms, but also demonstrates the spirit of decentralized and scientific encryption. This spirit involves in not only the crypto field but also the metaverse.
PUGG (Play Unity Gold Game), as a metaverse entry platform built on the basis of GameFi, has a consistent DAO encryption spirit demonstrated by on the one hand its community autonomy in GameFi and on the other its development and operation of the shared ecosystem in the metaverse.
First of all, PUGG’s rule system, including creation, governance, incentives and so on, is built on the BSC chain through blockchain technology. Calit, its token which is related to all participants’ interest and form incentives for all, has also been issued on the decentralized exchange PancakeSwap right on the same day when the liquidity pool has been locked, so it’s impossible for any project party to withdraw the pool.
Secondly, the token Calit is allocated in a way to maximize the efficient and orderly operation of DAO. Its specific allocation is: 20% for the team, 10% for private placement, 10% initially in the user reward pool, 5% initially in the node reward pool and the rest 55% for community DAO governance put in the pool.
Finally, at the level of metaverse ecosystem construction, Calit is the only token set in the economic system of the PUGG metaverse ecosystem. In the process of PUGG’s infrastructure and extension in its technology, games, entertainment, social networking and other blocks and its cooperation with other projects to make its planets grow and expand, Calit will serve as the link between the planets, leading to more possible achievements through online and offline activities and porting of software and hardware.
With the connection of Calit, some scenes upgraded by PUGG in the later stage such as bars, clubs, rest cabins and rooms will be built after being voted on in the form of DAO. All PUGG Metaverse citizens with MetaPeople virtual citizenship cards can participate in each round’s voting in each phase and thus jointly participate in the ecosystem construction of the Metaverse in the form of DAO and together create the most anticipated Metaverse scene.