DAOstack aims to be the future of collaboration, it is an open platform for decentralized governance. Behind it we find the native GEN token powering its ecosystem. Here we will take a quick overview of what is DAOstack and GEN’s tokenomics.
What is DAOstack?
DAOstack enables a collective of people to self organize themselves easily and efficiently around shared goals or values. Many compare DAOstack as the operating system that allows people to easily launch a Decentralized Autonomous Organization (DAO). Furthermore, DAOs are becoming an increasingly important backbone in the DeFi economy.
Launched in 2018, the platform provides a framework for developers to create intuitive interfaces for participating in a decentralized organization. Excitingly, there is no need to have any technical background. DAOstack promotes use cases such as collaboration to produce work, asset management, curation or any form of decentralized decision making.
What is GEN token?
The DAOstack ecosystem has a native crypto-token which is GEN. As a result, this would be seen as the utility token of the ecosystem. In a DAO there is a need to ensure the voting is not corruptible. Therefore, the solution is to provide voting power in the form of a token. GEN token provides you with voting power in the ecosystem, you can stake GEN tokens for or against proposals. There is an incentive for making good decisions, as staking effectively acts as a prediction market. Where if you stake for proposals that are passed then you’re rewarded with more GEN. Whereas, if you stake on proposals that then fail, you will lose GEN.
Why does GEN token have value?
The beauty behind the DAOstack project is that it opens the doors for an unlimited amount of DAOs. There can be a DAO for any conceivable human purpose and it can be governed efficiently. Essentially. the idea behind buying GEN tokens is speculating that some of these DAOs become useful and garner success. If a small percentage of these DAOs become profitable then the demand for GEN tokens will increase drastically. With how fast yield farming operations have locked up millions, it seems like this could be a profitable long term bet.
DAOstack also has a strong team of partners behind them, and will move a portion of their own funds into the DAO ecosystem. This will be a way to kickstart and attract a new generation of DAOs as the overall amount of capital deposited into DAOstack ecosystem increases. Consequently, stakers will have more DAOs to govern and staking rewards will increase.