STAKE DAO

STAKE DAO explained

The STAKE DAO is an upcoming Decentralised Autonomous Organisation that manages the liquid staking protocols by deciding on key parameters (e.g., setting fees, assigning node operators and oracles, etc.) through the voting power of governance token (STAKE) holders. Also, the DAO will accumulate service fees and spend them on research, development, liquidity mining incentives and protocol upgrades.

Why DAO?

The DAO is the logical compromise between full centralization and decentralisation, which allows the deployment of competitive products without full centralization and custody on the exchanges. We do not believe that it is possible to make a liquid staking protocol that is completely trustless in the foreseeable future. A DAO is an optimal structure for launching STAKE as:

• DAO is essentially a decentralised entity, which is enabling a focus on community and might offer a more socially-conscious structure and consequent decision-making;

• DAO will be able to cover the costs of developing and upgrading the protocol from the DAO token treasury.

• And other management activities as well if there is a technical ability

The DAO will accumulate service fees from STAKE, which is funnelled into the insurance and development funds, distributed by the DAO.

Functions

STAKE will soon be managed by the STAKE DAO. When fully implemented, DAO members will govern STAKE to ensure its efficiency and stability. The STAKE DAO should do the following:

• Build, deploy, update and decide on key parameters of liquid staking protocols, approve incentives for parties that contribute towards DAO’s goals

• Node operators management. Assign initial DAO-vetted node operators, scout and qualify new node operators and penalise the existing ones slashed by chains rules

• Payments to full-time contributors and other operational duties

• Bug bounty program, respond to emergency

• Accumulation of service fees from STAKE, which can be funnelled into the insurance and development funds, distributed by the DAO.

Governance

The STAKEtoken governs all DAO governance and network decisions to ensure its prolonged stability and decentralised decision-making to facilitate the growth of fair, and transparent liquid staking. The STAKEcontract address is upcoming on the Hyperliquid Layer 1 - [0x Adress here].

📝 For more detailed information about governance, please, check out the Governance page.

To have a vote in the STAKE DAO, and to contribute to the determination of any of the topics outlined above, one must hold the STAKEgovernance token. Holding STAKEgives DAO members a vote in the future of STAKE, allowing each DAO member to have a personal say in the community. STAKEvoting weight is proportional to the amount of STAKEa voter holds. The more STAKE on a user’s address, the greater the decision-making power the voter gets. The exact mechanism of STAKEvoting can be upgraded just like the other DAO applications.

📝 If you have any initiatives you think will benefit the STAKE protocol, join our Discord.