A decentralized autonomous organization (DAO) is an organization represented by rules encoded as a computer program that is transparent, controlled by shareholders and not influenced by a central government. NavCoin’s DAO intend to achieve this with three major features:
Community Funding System The community funding system aims at creating a decentralized funding system where anyone in the world can submit proposals. The proposals will then be voted on by the network. Once accepted, the requested funds will be locked up for the proposal. Payment requests can then be submitted to release the funds in small portions or all at once. This funding system is unique in many ways:
Consultation System: The consultation system is created to gauge the community sentiment on any topics. The most obvious benefit is that when new features are introduced to NavCoin, the community used to have to vote on soft forks to activate said features. With the consultation system, developers can easily communicate with the community to see if new features will be accepted even before they are worked on. Besides that, there are many other use cases for consultations. Stakers can create polls of which privacy protocol to implement or predictions of how much bitcoin will be worth in 10 years. One can say consultations are providing directions that the community decides as a whole and follow as a whole.
Consensus Parameter Changing System: Historically speaking, network consensus parameters are slow to change due to two main reasons. One, it requires deep understanding of the code to ensure nothing breaks. Two, the changes are a yes/no questions. You either support the changes or not. With DAO, any community member can start many consensus changes at the same time with various values. For example, one can propose to change the rewards per block to 1 NAV, 5 NAV, and 10 NAV at the same time and let the community choose. And the entire process can be done without any involvement from developers.
With these systems, NavCoin’s DAO allows the community to be funded for work, guided by community’s own directions , and able to change network parameters without developers’ involvement.