TLDR: Effortless Integration of existing ERC-20 tokens into Fractal’s Azorius governance protocol.

Introduction

Decentralized Autonomous Organizations (DAOs) are an exciting blockchain use case in the web3 space due to their potential for empowering collective decision-making and truly decentralized governance. As this domain continues to grow, there is an increasing demand for advanced tools and features that simplify the creation, deployment, and management of DAOs. The Fractal app is a groundbreaking platform that addresses these needs, making it easy, trustless, and secure for collective groups to establish and oversee DAOs.

Here, we will examine on of the existing challenges in DAO governance, envision the perfect scenario for DAO governance, and explore Fractal's latest update that makes this ideal a reality.

Current State of DAO Governance

Brand new DAOs have a huge amount of choice on the platform from which they launch their governance. From voting types, to proposal quorum, and all of the details in between, creating a DAO from scratch has become as easy on Fractal as filling in a few forms.

This choice has been much more limited for groups that already possess a governance or ERC-20 token, as they are required to either manage the task of building their own custom governance contracts around it, or migrating to a new ERC-20 token entirely.

Ideal Vision for DAO Governance

Fractal’s vision for DAO governance is to create a seamless, adaptable, and efficient process that allows groups to establish and manage DAOs effortlessly, no matter their current state. This includes the ability to conveniently integrate existing tokens into the Fractal DAO infrastructure, enabling organizations to preserve the token ecosystem and culture they have already set up.

Fractal Solution: Wrapping Existing ERC-20 Tokens

Fractal's latest feature tackles these challenges directly by allowing users to import any existing ERC-20 token and wrap them for governance purposes with an ERC-20 Votes token (an OpenZeppelin standard). With this new feature, organizations can now create DAOs and subDAOs using their existing tokens, or even potentially the same token, eliminating the need to create and distribute new governance tokens for each DAO.

The procedure is straightforward: users can input the address of their existing ERC-20 token into the Fractal app during DAO creation, and wrap them into a new ERC-20 token specifically designed for governance. These wrapped governance tokens are then used to create DAOs and subDAOs within the platform.

Users can wrap or unwrap their original ERC-20 tokens at any time, offering a flexible and reversible process that reduces friction and enhances the utility of their existing token.

We at Fractal continue to improve our platform, and are excited to meet the needs of DAO organizers and participants, check it out today at app.fractalframework.xyz.