DexGuru transfers power to its users with “Bootstrap” DAO launch

The grand vision for decentralized autonomous organizations (DAOs) is about hardworking, utopian communities owned and managed by their members, with each individual having a voice over how assets are allocated and how things are run.

But the sad truth is that DAOs often start out centralized; In many cases, important decisions have already been made by the core team of the DAO long before the majority of its members even join. But there is a change in the air.

A soon-to-be-launched DAO is determined to put things right and ensure their community of 10,000 is involved in key decisions from the start. It’s being created by the community of DexGuru, a popular trading and analytics platform, and its members will be able to influence the shape of GuruDAO – and its accompanying token – even before launch.

DexGuru contributor Nick Sawinyh told Decrypt how the newly formed organization will embody the true principles of decentralization – and why this is so important to the future of DAOs.

Not all DAOs are the same

The DexGuru trading terminal was launched in 2020 with the aim of providing the best user experience along with real-time data across all decentralized exchanges (DEX) markets that enable accurate on-chain research and powerful data analysis.

Like many crypto projects, it plans to launch a DAO so its user community can dictate the direction of the project. But even the launch date of GuruDAO is left up to the community, Sawinyh said.

The DexGuru user interface. Image: DexGuru

It’s an approach that’s far from typical; Projects typically do not assign voting rights to community members before their tokenomics are determined, or give users a say in the process.

Most of the time, decisions about “how to launch a token, how tokenomics should work, how the internal processes of DAO governance should work…are made by a very narrow circle of about five to ten people from the core team,” says Sawinyh.

“We want our community to define these rules themselves, without the core team imposing their will. When we talk about community governance and when we talk about people building something together, it shouldn’t be a core team or some kind of development or support team or an inner circle that makes decisions for everyone,” he explained.

“We want our community to define these rules themselves, without the core team imposing their will.”

– Nick Sawinyh

Each member comes equipped with a Guru Season Pass NFT, which allows them to participate in what DexGuru calls “governance mining” during the DAO bootstrap phase. (Secondhand Season Pass NFTs are available on the Opensea Marketplace.)

Among other things, the community members will vote on “how the DAO will work, how the token will work and what the token assignments will look like,” says Sawinyh.

The DexGuru Story

This rapid, early decentralization reflects DexGuru’s broader mission to bring on-chain data analysis tools to a broad decentralized finance community (DeFi) traders, allowing them to make the same informed decisions as large traders, effectively decentralizing the distribution of on-chain analytics.

GuruDAO emerges “from the large number of people who come to the DexGuru website to chart, trade tokens and browse markets,” says Sawinyh, who has extensive experience building consumer-facing crypto products and previously the internet publication DeFiPrime founded.

He and a few friends founded DexGuru during the DeFi summer of 2020 and became “obsessed” with the idea of ​​providing better UX and tools for their growing trading community.

“Most charting tools back then were just supported Uniswapand we wanted to represent every token on every possible chain, without intermediaries, without disruption, and we wanted to see data as quickly as possible – in real time,” says Sawinyh.

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The main task of the platform was to develop professional charting tools and real-time market data for all tokens and decentralized exchanges hosted on an EVM compatible chain. They sought to provide an overview of the entire market and its key stakeholders to enable traders to easily monitor asset flows on the chain, using data transparency as a guiding principle.

Recent updates include a token profile feature that reveals new details such as the top 100 holders and whether they are still making profits, and a “trader profile” that allows users to see the value held in a wallet and its transaction history .

There is also a new classification of liquidity providers that tracks and flags investors based on the value of funds locked in different liquidity pools over the past 30 days.

And their strategy is proving successful: In February 2022, DexGuru closed a $5 million strategic funding round; Since its launch, the platform has processed over $1 billion in trading volume.

A bootstrap DAO start

The rapid growth of the DexGuru community, which now forms the foundation upon which GuruDAO will be built, has been extraordinary due to its organic nature, says Sawinyh. Now it’s up to the community to decide the time, date and design to use to launch the GuruDAO and its token.

“I think what we’re seeing now – not just at DexGuru, but as a growing trend – is a kind of ‘Day 0’ decentralization where all formative decisions (including token distribution) are delegated to the DAO while the operations team functions more as a sub-DAO than a project overlord,” said Dino Ibisbegovic, a GuruDAO member who is part of Daedalus, an angel collective investing in DexGuru.

Once the DAOs mechanics and token allocations are decided — with each voting cycle taking about a week, according to Sawinyh — GuruDAO will use smart contracts and tokens like other DAOs.

“What we’re seeing now — not just at DexGuru, but as a growing trend — is a kind of ‘Day 0’ decentralization.”

– Dino Ibisbegovic

Its participants make decisions about how the organization’s resources are allocated; You will decide how early governance participants, airdrops and transactions of the DAO will be rewarded.

And while the token launch is highly anticipated by the GuruDAO community, the current market conditions – namely issues with UST and market turmoil – mean the community will likely wait a few months before launching their token, says Sawinyh .

In the meantime, they plan to improve the DAO’s tools and continue to grow the community as they define, refine, and further decentralize.

Sponsored post by DexGuru

This sponsored article was created by Decrypt Studio. Learn more about the partnership with Decrypt Studio.

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