DeFi (Decentralized Finance) is the creation of an ecosystem of financial tools built on blockchain. Also known as open finance, DeFi apps take traditional financial services and rebuild them as open and permissionless.
A Decentralized Autonomous Organization is a management tool that is fully transparent and enforced programmatically by blockchain that can be fully functional without any central authority. Consider a decentralized organization as an initiative where the community is responsible and has a say in the project's future.
Protocols are the basic sets of rules that allow data to be shared between computers, and the crypto communities are built on top of that.
A Blockchain wallet is a secure software program that basically allows users to buy, sell and check their digital assets balance.
The total amount of EGT in existence right now, minus any EGT that has been verifiably burned.
A process where blocks are added to a blockchain, verifying transactions. It is also the process through which new EGT is created.
Crypto tokens are a type of cryptocurrency representing an asset or specific use and reside on their blockchain. In ElasticDAO, your assets are represented by EGT.
The value backing an asset is the value, in ETH or BTC, that a participant provides to the protocol to get an asset. In ElasticDAO, the treasury is backed by ETH. The participant gives ETH to buy EGT.
Blockchain governance refers to the mechanisms by which decentralized networks adapt and change over time. Different members of the community propose new ideas and solutions-the community votes on the proposals. If the majority of people agree, the proposal constitutes a next step on the organizations' roadmap.
In the ElasticDAO ecosystem, every person who holds EGT has the right to participate in the governance.
Proposals are the different suggestions about the future of the protocol. The suggestions can refer to team structure, financial decisions, recruitment, code, or strategy -The mechanism around the proposals diverse between different DAOs.
In ElasticDAO, members who exist or reach the maximum voting power can create proposals.
When a participant is positive about a proposal, they approve it by voting yes.
When a participant disagrees with a proposal, he denies it.
If a participant chooses not to have an opinion about a proposal, he votes abstained. This happens when they are agnostic about a proposal or lack the in-depth knowledge needed to formulate a position.
A term used on the Ethereum platform refers to measuring the computational effort of conducting transactions or smart contracts. It is the “fuel” of the Ethereum network. If a participant wants to vote or create a proposal on an on-chain governance system, he has to pay gas.
A quorum is the minimum number of members of an organization who must vote for the proposal to pass.
On-chain governance is a system for managing and implementing changes to a decentralized organization. In this type of governance, rules for instituting changes are encoded into the blockchain protocol. The voting outcome will be implemented automatically.
The off-chain governance system has 2 main differences from the on-chain governance system. In this type of governance, everything is happening informally-away from the blockchain's underlying codebase. This means that the participants don't have to pay gas fees to create a proposal or vote on a proposal.
Layer 2 is a set of technologies or systems that run on top of Ethereum (Layer 1), inherit security properties from Layer 1, and provide greater transaction processing capacity (throughput), lower transaction fees (operating cost), and faster transaction confirmations than Layer 1.
Multisig is the shortened name for multi-signature, this kind of wallet requires one or more signatures to sign a transaction. A multisig wallet is a wallet shared by two or more users.
Free riders consider being a part of the ecosystem to consume more than their fair share on top of the community or pay less than their fair share of the costs. Individuals with enough resources to enter a market and profit without being active or participating in a protocol's welfare.
Its supply determines the token price. The more tokens that have been distributed, the higher the price. Therefore, the more people entering the DAO, the more EGT tokens are distributed. This leads to a rise in the token price.
A general increase/decrease in everybody's value when a new member enters the DAO.
In ElasticDAO, there is only a positive rebase. The rebase happens only when a new member joins the DAO directly from the website.
A governance model where individuals have the same opportunities to grow inside the organization and they govern under a maximum voting power model.
A bot is a software application that is programmed to do certain tasks. Bots are automated, which means they implement specific commands without human interaction. There is a programmed trigger that makes the bot start running.
The maximum voting power represents a certain number of tokens that someone can vote within ElasticDAO. Even if an individual has a greater number of tokens than the maximum voting power, he can't use them to govern the project.
Burning tokens could be translated as burning a gift card. When someone exits the DAO, he burns his EGT for their underlying value in ETH.
Earning value inside to protocol without having to put down money for it. DAO contributors and governance participants get rewarded for their effort.
When a proposal doesn't reach the quorum, the community can vote to penalize the participants who didn't vote. The participants will be punished on their tokens, and their value will decrease.
The creation of a DAO on the Elastic DAO platform.