The burgeoning field of cryptoeconomics will affect the direction of governance mechanisms and configuration of AI engines forming the basis of future decentralised platforms (DAO). The PRIMARY development team’s aim is to set up a sustainable, secure DAO with an efficient consensus protocol. This is an ambitious undertaking, but one which is necessary if PRIMARY is to be a viable platform for the post-scarcity economy our team aims to contribute towards.
Building a DAO
PRIMARY accounts for competing incentives influencing the interaction between community members. The development team will keep modifying the underlying smart contracts while keeping in mind the cryptoeconomic conditions that will affect the users. It is an ongoing process through which the distribution of rewards on the platform is determined.
The following attributes of the project resemble the workings of a DAO:
Tokens leveraged to create value
The PRIMARY marketplace will have a dual token ecosystem.
Open Source Code
The code behind the PRIMARY platform will be made publicly available on GitHub.
No third party required
Users of PRIMARY will not need any third parties other than the ones engaging in a transaction.
Immutable records
All records concerning PRIMARY will be available on the EOS public blockchain.
DAO vs dApp
What will allow PRIMARY to develop from a dApp into a DAO is an adherence to the principle of distributed ownership. While individuals or organisations may be involved with setting up and implementing decentralised organisations, DAOs operate autonomously and only function according to the rules written into the smart contracts which run them. Of course these smart contracts are created by individuals (as in the case with PRIMARY). Though in the long run they will only be modifiable if the community reaches a consensus on any changes.
Tokenized DAOs
DAOs are possible by tokenized ecosystems which allow for the transfer of value between members of the community. Tokens also allow a DAO to create a rewarding mechanism for users who contribute to the platform. Further, they are often used as collateral when making proposals on the network. PRIMARY will implement a token mechanism through the use of smart contracts which will enable users to transfer value in the form of the PRIMARY token.
While a DAO can have many possible mechanisms for receiving proposals and conducting community voting, requiring the use of tokens leads to several positive outcomes in terms of the organisation’s health:
- Increases the circulation of tokens in the economy.
- Leads to changes in the price of said token.
- This also allows the price of the token to reflect the underlying value of a platform.
For this reason, staking tokens will be a major way for users to increase their member score on PRIMARY and contribute to the platform.
The case of ‘The DAO’
In theory, many cryptocurrencies created through the use of public blockchains, such as Bitcoin and Ethereum, are considered to be DAOs. However, theory often diverges from practical implementations of products, especially in the nascent blockchain industry. One need not look farther than the case of The DAO (an apt name for a DAO) which had millions of Euros worth of cryptocurrency stolen from it. In short, this massive hack could only be rectified through a hard fork of the Ethereum blockchain which was implemented after being voted in by the community.
Learning from ‘The DAO’
The PRIMARY team has learnt two valuable lessons by observing the issues faced The DAO.
The first is that there is a higher chance that such platforms will have glitches or security bugs in the initial months of their rollout. Therefore the smart contracts which underlie the PRIMARY application will initially be developed in house by a dedicated development team. Only after successfully beta testing the application and taking feedback from the community will the smart contracts be made modifiable through public voting.The second lesson learned is that community ownership definitely does result in heightened synergies and reduced waste. The bug which resulted in the error had already been identified by The DAO’s community and a correction had already been put in place. However, due to the time required for that platform to reach consensus. This user was correct to ask why a security bug for which a fix had already been.
Stay in touch with PRIMARY
The private pre-sale of the PRY token started on the 1st of August, 2018.
For further information regarding token distribution and the team behind the project visit PRIMARY.
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