As the Ergo ecosystem continues to grow and evolve, there are several keystone projects that will bring new functionality and utility to the blockchain. One dApp that is set to usher in this wave of innovation is Paideia’s DAO software suite. If decentralized systems are to ever fully realize their potential, then trustless and transparent DAOs will be an essential part of the future.
What is Paideia?
Paideia is a decentralized autonomous organization (DAO) software suite. A DAO is an organized collective that is not controlled by a central authority. Ideally, a functioning DAO should be transparent and deployed via smart contracts. With smart contracts, DAOs offer the ability for an organized community to have fair and equitable discussion, table proposals and vote on said proposals. DAOs are governed entirely by their individual members who, as a collective, make crucial decisions on how the DAO operates. These decisions can include the constitution of a DAO, the long-term goals of the project and the allocation of treasury funds. A DAO’s primary use case is to reduce the trust needed between multiple users in order to promote decentralization in the decision making process for a collective. As per Paideia’s Twitter bio:
“Paideia is a DAO management software suite. It is designed to make it easy for anyone to create, manage and be involved in a DAO.”
Paideia is ramping up to release its MVP (minimum viable product) this April, which will include several key features, such as creating a DAO, staking, profit sharing and standard governance. The MVP will also include parameters to create basic proposals as well as the ability to send funds from a treasury to a specific address.
Paideia will be fully customizable and allow for an expansive range of programmable variables, including staking emissions (per staking period), staking period length, staking delay, profit share percentage, quorum threshold, majority threshold, whitelisted proposals and whitelisted tokens for profit sharing. DAOs on Ergo will also be able to update contracts for different parts of Paideia and implement their own custom configurations to their DAO. At time of publication, the team has announced that they have already begun private testing of Paideia’s products.
Paideia’s software suite will enable the ability to adjust DAO parameters via community proposals. This includes DAO creation fees, proposal creation fees, DAO running fees and upgraded default/template contracts for newly created DAOs. This high degree of flexibility will allow any DAO to reconfigure their respective parameters as needed with efficiency and transparency.
It is important to note that voting proposals are strictly enforced with smart contracts in Paideia. The founder of Paideia and Ergopad has stated that “One problem with DAOs like arbitrum is that when a vote concludes, nothing is enforced. The team still gets the final say. This means that the vote is essentially a formality and the team behind the vote can veto what the community wants regardless of how the vote turned out.”
This exact situation occurred with Arbitrum on April 2nd, 2023. The community voted ‘no’ to allowing the foundation to receive 750 million $ARB tokens. Since the governance structure was not enforced by smart contracts, the foundation essentially vetoed the community vote and allocated the $ARB tokens to the foundation. Without smart contract enforced voting, governance is not decentralized and a team can essentially do whatever they want, regardless of community voting. With Paideia, “The PaideiaDAO does it differently, where treasury-based votes are enforced by smart contracts.” This means that the result of a DAO vote will automatically execute the action of the vote consensus. In other words, a team cannot override a community vote.
Paideia’s voting mechanism will exclude yes/yes voting proposals to ensure the protection of members within a DAO. Luivatra (core dev of Paideia) has stated that he “...will start testing the proposal feature of PaideiaDAO. A DAO’s funds are in a smart contract based treasury and can only be spent through passed proposals. Proposals will always have a no option, no yes/yes shenanigans.” This means that a particular DAO’s community will always have the option to veto a proposal by the DAO.
Paideia's DAO tooling represents a significant step forward in DeFi and crypto governance, offering a powerful set of tools and features for creating and managing DAOs. Projects on Ergo will soon be able to use Paideia to fit their project’s needs.
To learn more about Paideia, please visit their Twitter, website and Linktree.