Why Do DAOs Adopt two Treasure Systems? The rapid growth of the Web3 ecosystem has led to advances in Ethereum scaling systems and the emergence of high-performance layer-1 blockchains. This led to the growth of crypto technology at all levels – from internet startups to large enterprises. However, the current model of building a Web3 ecosystem has its own flaws.
Blockchain infrastructure companies are trying to solve two complex and expensive problems at the same time: building the best-in-class infrastructure and building the largest and most robust ecosystem. Each of these efforts requires a special team and a large expenditure of resources to succeed.
As a result, many blockchain infrastructure companies have seen their money flow quickly. For example, Polygon’s MATIC token’s free float is over 90% (all inclusive) and Solana’s SOL token’s free float is over 85% (all inclusive). This means that many of the tokens from the environmental funds of large infrastructure projects are already used in the market.
This type of growth strategy, where infrastructure companies have to solve two different problems at the same time, is not sustainable. This will ultimately destroy the financial viability of these projects and undermine the growth and adoption of Web3 technology in general.
Special layers – different ways to build Web3
The best solution is to turn one resource problem into two financial solutions, each focused on building infrastructure or the environment. By dividing the responsibilities for building the best infrastructure and supporting environmental development, each bank can focus on its specific objectives and allocate its resources. This can lead to more efficient and effective use of resources and a more robust and sustainable ecosystem.
Using a two-tier financial system, the first layer will focus on building important technical infrastructure such as blockchain, connecting devices, and other devices. Meanwhile, the ecosystem layer will focus on supporting developers and entrepreneurs building Web3 businesses, applications and standards.
By using dual staking, it is possible to create value for both the infrastructure and the business level. The infra token will increase value by investing in and providing crypto economic security, while the layer token will increase value by enhancing the economy of the ecosystem. In addition, the environmental layer will generate gas royalties, which will transfer the value to the infrastructure layer.
This is how web2 infrastructure companies like Amazon Web Services act as a foundation as companies build businesses on top of their infrastructure to create value for the end user. In general, this method gives the ability to create great value for both parties involved.
DAO Distributed body
DAOs (Autonomous Organizations) have many unique advantages when it comes to building ecosystems. A DAO is a network of participants governed by a set of rules embedded in smart contracts. This structure allows for open decision-making and participation, as each token holder can speak in the direction of the DAO and can contribute to the growth of the ecosystem.
However, the nature of DAOs may not be the best for making complex technical decisions. These decisions often require a high level of expertise and can benefit from the focused efforts of a small, centralized team. Also, the presence of information asymmetry can prevent society from making the best decisions on these issues. By combining the vertical structure of the DAO with the vertical structure of the resource provider to create a larger ecosystem, rich benefits for the community are generated.
This hybrid approach allows us to apply the benefits of vertical and horizontal architecture to building environments and technical decisions. Over the past two years, the Web3 space has grown by leaps and bounds, but we’re still lagging behind when it comes to adoption. The total number of participants in the Web3 network worldwide is still in the one million digits. If we are to achieve the acceptance of Web3 technology, we will need new ways to increase the amount of resources to build both the technology and the environment.