DAO is an acronym for "Decentralized Autonomous Organization", which usually refers to a group formed for a certain task, and the task adopts the blockchain to implement rules and coordinate members to organize activities. The main benefit of DAO is that it is more open, transparent, and fair compared to traditional centralized institutions. It decentralizes decision-making power to all participants of DAO in a more reasonable manner and gives participants certain incentives to inspire people to contribute more spontaneously to the community.
The upgrade of GXChain to REI Network is not just a transformation into an EVM-compatible Ethereum parachain, but also technical iterations, and great innovations in ecological cooperation, branding, etc. (please refer to Interpretation Article Series for REI Network), REI Network will be more decentralized, more open and transparent in the governance model with blockchain spirit to return the on-chain governance rights to every token (REI) holder.
A foretaste of community autonomy
The release of GXChain's proposal to upgrade to REI Network in the community on Dec 2, 2021, is the first step for GXChain (REI Network) to decentralize community governance, and the action has received positive responses from the community. As of the voting deadline on Dec 7, 2021, we received nearly 10 million votes (98.8% upport rate) from the community for the proposal (one coin, one vote, 7.5 million votes is the minimum number of votes required for the proposal to be approved), and the proposal includes the rename of GXChain, token splitting, and future path fianlly get approved . Proposal publicity: https://proposal.gxchain.org/#/
Decentralized governance path of REI Network
The upgrade of GXChain determined by the community is a prelude to REI Network's decentralized governance. In the future, REI Network will lower the threshold for users to participate in decentralized governance from all aspects, and increase the enthusiasm of the threshold for decentralization.
First of all, participating in decentralized governance on the REI Network is gas free. Because REI Network can acquire on-cahin resources by staking the native token REI, compared with the cost of hundreds of thousands of gas fees for participating in governance and calling a contract on the Ethereum, the cost of on-chain governance on REI Network is cheaper and more friendly to ordinary users.
Secondly, REI Network’s DAO will be fairer. After GXChain is upgraded to REI Network, 25 million GXC (250 million REIs after the split) that locked by the foundation will be used as ecological funds, of which 5 million (50 million REI after the split) is used for node rewards, 5 million (50 million REI after the split) is used for marketing, and 15 million (150 million REI after the split) is used to incentivize developers and the ecosystem. The foundation no longer holds tokens, and the distribution addresses of tokens are more dispersed. "Everyone can govern the public chain" may become a reality.
Finally, the governance function will be more extensive. The governance scope of REI as a governance token will not only be limited to the development path of REI Network. Later, the path of ecological projects on REI Network and the issuance of ecological funds will be decided by the community.
How does REI Network guarantee the realization of DAO?
Viewed from the history of Dao, decentralized organizations still face many problems in their development. For example, they are unable to respond timely and effectively to hacker attacks ("The Dao" event in 2016), and ordinary users are not interested in participating in community governance.
REI network will not be completely rely on centralized on-chain governance but the foundation is entrusted to make corresponding planning for the development direction of the chain and grants distribution to ensure the steady operation of the chain and the steady development of ecology at the early stage, a slowly transition to the on-chain & off-chain collaborative governance model, and finally realize the decentralized governance model of REI Network..
The significance of REI Network's decentralized governance model is embodied in:
- REI Network, as an on-chain infrastructure, will allow the community to have more on-chain management rights. REI Network +DAO is not only limited to on-chain governance, it will also be reflected in the return of the foundation's decision-making power to the community. For example, the foundation is only responsible for formulating the Grants rules, for new projects applying for REI Network Grants, whether they should be approved and how much incentives will be issued are all determined by REI holders.
- REI Network will form a positive interaction with REI holders. On the traditional Web2 platform, the value of network effect growth is captured by the platform. As the entry for team collaboration and production relationship innovation (Web3.0), DAO’s network effect is stronger than that of the centralized Web2, its value is allocated by the platform to community members according to the degree of contribution, thereby further enhancing the network effect of the ecosystem and the infrastructure required for ecological construction. A stronger infrastructure will attract a wider range of members and provide stronger support for the value of REI on-chain token of REI Network.
Conclusion
REI Network will be officially launched at the end of Dec, 2021, and more and more ecological projects are being integrated. Join REI Network community (https://t.me/GXChain_international) to participate in REI Network governance.