4 min read
An Interview With Clarity DAO
We sit down with Logan from the Clarity project to talk DAOs and understand how Clarity is making setting up a DAO a process taking only a couple of clicks
The Clarity Project is an ecosystem that exists to enable decentralized innovation. The project aims to provide the necessary resources for communities to make distributed decisions and leverage collective intelligence. By providing comprehensive technical governance infrastructure and interactive knowledge-building ecosystem products, the ecosystem accelerates the discovery of innovation and progress for decentralized communities.
The Clarity Web Platform is a user-friendly website where users can create, manage, and participate in DAOs (Decentralized Autonomous Organizations) on the Cardano blockchain without writing code. The platform extends the functionality of the Agora Protocol and provides a non-technical user interface to lower the barrier to entry to create, manage, and participate in decentralized organizations. In addition, the platform has been carefully designed to promote user participation in on-chain governance.
The Agora Protocol is an audited library of open-source Plutus scripts that can create and govern decentralized organizations. The protocol allows DAOs to operate completely on-chain, from deploying governor scripts to managing and voting on proposals. The Agora Protocol is a Plutus script set that forms a governance system. Users deposit governance tokens into stakes, which allows them to create and vote on proposals. Voting weight is equal to the staked amount. These proposals can specify effects on-chain, such as managing a treasury containing ADA and other assets, changing on-chain parameters, and minting specific tokens.
What is DAO Governance?
Governance is the decision-making process within a particular system, organization, or society. Historically, governance has been implemented by an entity with elevated authority. However, the advent of internet technology, cryptography, and consensus protocols allows for a new form of governance: on-chain governance. A DAO is a liquid democracy built on cryptocurrencies and smart contracts, where actors use their public keys to participate in governance. The amount of a particular cryptocurrency owned determines the voting power. Members can vote directly on proposals, create them, and delegate their voting power to other DAO members.
With Clarity, on-chain governance takes place in a step-by-step process. Clarity uses a voting process where members cast their votes, and the results are tallied to determine the proposal's outcome. The process starts with a proposal being created by a DAO member or the Clarity platform itself. The proposal is then broadcasted to the DAO members, who have the option to vote on the proposal. After a set period, the votes are tallied, and the vote results are broadcasted to the DAO members. If the proposal is approved, the effects specified are executed on-chain.
The Clarity Project and the Agora Protocol are designed to provide a comprehensive solution for on-chain governance, enabling decentralized organizations to make decisions and execute effects on-chain. The Clarity Web Platform lowers the barrier to entry to participate in decentralized organizations, making it accessible to a broader range of individuals. The Agora Protocol provides a solid foundation for decentralized organizations' governance, ensuring the process's integrity and security.
The token allocation of Clarity is divided into different categories, each with its purpose and function. First, 20% of the tokens are allocated to the founding team, the core group of developers, founders, and contributors to the Clarity Protocol. These tokens are subject to a 2-year linear vesting period, ensuring that the founding team remains incentivized to work towards the growth and success of the ecosystem.
Advisors also play a crucial role in Clarity's growth and development; as such, 5% of the tokens are allocated to them. In addition, these tokens are given to industry professionals who bring immense value to the DAO through their networks, research, or specialized knowledge.
20% of the tokens are allocated to the DAO treasury, which can only be spent with the approval of the DAO through an on-chain vote. The DAO treasury also rewards Clarity DAO members who participate in governance and opt into the DAO's incentive structure.
3% of the tokens are allocated for community airdrops to incentivize community involvement and engagement. Finally, 7% of the tokens are allocated for yield farming to incentivize liquidity and attract more users to the ecosystem.
10% of the tokens are allocated to ecosystem partnerships aimed at creating synergistic relationships, supporting worthwhile organizations and projects, and funding educational initiatives. This will help Clarity to grow its network and establish itself as a critical player in the blockchain industry.
Finally, 35% of the tokens are allocated to future development and investors. These tokens will fund future ecosystem developments, including developer support, marketing, administration, and fundraising via investors. This allocation ensures that Clarity has the necessary resources to grow and evolve.
The Clarity Project and the Agora Protocol are essential tools for decentralized innovation. Decentralization is a crucial benefit of blockchain technology, so tools that support its adoption have a bright future, especially on Cardano, where DAO governance is developing for the blockchain itself.
The project provides the necessary infrastructure for communities to make distributed decisions and leverage collective intelligence. The Clarity Web Platform and the Agora Protocol make on-chain governance accessible to a broader range of individuals, enabling the discovery of innovation and progress for decentralized communities.
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