Legacy systems are deeply flawed. There’s a reason we’re excited to replace them. And as the Web3 ecosystem continues to mature the larger community has veered from the values which made it what it is today.
The fundamental principles of decentralization, a reduced reliance on centralized services and providers, and the ability to transact without middlemen have rightfully become primary goals. Once overlooked, these ideals have now become holy grail-like objectives achievable by any means necessary. Few understand this is a difficult task to maintain.
New projects in this nascent ecosystem face a myriad of additional challenges. Without a true understanding of how to bring a crypto project to market, new entrants struggle to gain footing. Projects have trouble coordinating funding, remaining transparent, while simultaneously aligning company and community incentives. These issues are ever-present and oft compounding.
Crypto projects succeed when the creators treat their communities well. They must set clear goals, face shortcomings honestly, balance incentives fairly, and build for the long term. Web3 will win. Finance is moving on-chain. We help make that happen, not by speculating or over-financializing, but by building.
We hold these truths to be self-evident, that the principles and underpinnings behind all web3 projects should provide access for all, transparency, as well as ownership by and for the community. We also believe the future of crypto is multi-chain, multi-application, and multi-player — which can’t be done alone. We believe a DAO is the best path moving forward.
Despite being optimally decentralized with regards to hierarchy and structure, DAOs are still largely inefficient due to underperformance. For most users governance and voting is boring. We aim to challenge this.
We believe the formation of The SOFT DAO will help catalyze decentralized autonomous growth without the trappings and inefficiencies of traditional organizations. The alignment of incentives and interests via a DAO could better serve not just Tokensoft but the broader Web3 community and its interests.
By forming a DAO we hope to alter the present status quo by supporting development teams building open, long-term, and fair crypto infrastructure and applications. We believe a SOFT DAO can also steward on-chain primitives which meet the DAO’s mission by supporting core development teams focused on these primitives, as well as managing a treasury that may result from protocol fees, revenue, etc.
The SOFT DAO would be governed by a decentralized, properly aligned community. It could ratify a code of conduct, update governance smart contracts, and generally alter its own governance mechanisms to function more effectively. With effective governance, it could also spur innovation by stewarding on-chain primitives. It could effectively manage smart contracts by curating registries of approved contracts, updating key parameters on DAO-managed contracts, as well as coordinating with other industry participants on future primitives.
It could also engage and support core developers looking to build out infrastructure and applications. This could be achieved through the creation of Requests For Proposals (RFPs) for desired crypto tools, approving core development team applications, as well as granting treasury assets to approved Core Development teams. By submitting reasonable proposals, parties could become core developers for the SOFT DAO. Proposals that meet the DAO’s RFP standards, demonstrate a track record of success, and ensure long-term alignment with the DAO’s mission could be approved and funded. The DAO could help support projects that replace vulnerable subjective processes with impartial, composable code.
The SOFT DAO could grow its treasury over time by putting funds to work in any prudent manner, including portfolio rebalancing, staking assets within DeFi services, as well as discretionary investing if proposed and approved.
Crypto exists to build better assets, networks, and rules. We believe our initiatives and direction can be best driven by the community for whom it was created. We believe the future of Web3 is multi-chain, multi-application, and multi-player — which can’t be done alone. This is why we believe the formation of a SOFT DAO would the best path forward to build open, long-term, and fair crypto.
Initial proposals for structure and governance will be posted at https://forum.softdao.ch
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