In today’s post on their governance and research forums, the team behind the DEX Protocol for Decentralized Finance (DeFi), announced initial plans to decentralize their administration by creating an “initial community-owned treasury funded by 0x Labs”.
“As we continue our mission to create a symbolic world where all the value can flow freely, 0x Labs intends to try seed funding for a community treasury managed by the DAO,” the post states. “To create a DAO, 0x Labs will identify a group of bootstrap representatives who will take care of the initial steps of decentralizing management.”
According to Theo Gonella, Platform Product Manager at 0x Labs and author of the publication “Introducing the 0x DAO,” long-time community members should not be surprised by the move to initiate decentralization.
He said, “We originally shared our vision of the progressive decentralization of the protocol in 2017, when we introduced ZRX, the governance token 0x.” “We always envisioned that ZRX holders would someday be in complete control of all aspects of the project – from community treasury management to pushing protocol upgrades.”
This step comes during a special production period for the project. The fourth version update of their home network drove up the prices of the original ZRX token last month, and last week 0x Labs ended a $ 15 million fundraising tour led by Pantera Capital. ZRX is currently located at $ 1.81, up more than 300% on the month.
However, governance does not hold back from developing the protocol, says Junela, fully open governance could be in place “by the end of the year.”
“Community treasury management is a natural first step. It will enable ZRX holders to become familiar with the governance system and the full experience while still having some safe boundaries.” “The next step is to expand the system’s reach to all aspects of the protocol, including the upgrades that were just facilitated with the recent 0x v4 launch.”
In the move to create a DAO structure, 0x joins an industry-wide effort towards decentralized governance.
The competitor’s collector and 1-inch AMM were transferred to DAO governance late last year, and today it announced a second round of air-dropped governance codes in a new vampire attack on Uniswap. Likewise, Balancer Labs recently opened a discussion about V2 production farming plans for AMM to the community, which is part of a larger effort to better decentralize their governance through the distribution of governance tokens.
Gonella says this is about community ownership that overrun DeFi and it’s exciting:
“We are collectively marching into uncharted territory for human coordination. The biggest collective challenge will be to move from“ participating ”societies to“ responsible ”societies. With the incredible growth in public blockchain adoption and growing interest in open project governance, we are confident that the 0x’s community will move into A fully responsible society in the coming years. “