Comprehensive Study of DefiLlama's Leading Contender MetaTdex Brokerage DAO Framework
In recent times, Web3.0 brokerage DAOs have garnered significant attention in the crypto community. From its launch conference in Dubai in December to its widespread adoption in Southeast Asia in January, and its growing user base in North Africa, this new type of organization is making waves in both the blockchain and stock financial markets.
But what makes Web3.0 brokerage DAOs so impactful? This article delves into the origins and current state of DAOs, the innovations and values of Web3.0 brokerage DAOs, the compatibility between DAOs and traditional institutions, the future of DAOs, and their implications for individuals. Before diving into the article, it's important to have a background on the events that led to the rise of Web3.0 brokerage DAOs.
- MetaTdex a the top 10 decentralized exchanges in the world (DefiLlama data)
- MetaTdex is in the process of listing in Hong Kong, which is expected to be completed in May 2023
- MetaTdex proposes a "token-stock linkage" strategy to realize the swap of crypto assets and stocks
- MetaTdex has launched the "Meta-Asset Cross-Chain Bridge" product, releasing Hong Kong listing benefits in advance.
- Web3.0 brokerage DAO member incentives are realized through the "meta-asset cross-chain bridge" contract, including MetaTdex stock and the platform’s Tdex Token incentives.
What is DAO?
DAOs, or Decentralized Autonomous Organizations, are decentralized entities that operate around a shared mission, governed by smart contracts to collectively create, acquire, and distribute community value. Compared to traditional organizations, DAOs have several key characteristics:
- Decentralization: Community rules are created by the community and not controlled by central organizations.
- Tokenization: Tokens serve as a requirement for participation and an incentive mechanism to drive the growth of the DAO and the achievement of its goals.
- Autonomy: Members can contribute to the DAO without being employed.
- Autonomous Decision-Making: The DAO is governed collectively by all members through community proposals and voting.
- Openness and Transparency: Smart contracts are deployed, and investment and revenue data are publicly recorded and auditable.
From an organizational standpoint, DAOs eliminate the need for hierarchical management, allowing for equal participation in governance and decision-making. The goal is to create an economic and social system that replaces traditional centralization and achieves decentralized resource allocation around the community's mission. Simply put, DAOs empower stakeholders with decision-making power rather than leaving it in the hands of executives or board members, thus achieving "decentralization." "Autonomy" is primarily achieved through the use of smart contracts, providing a strong foundation of trust.
DAOs as a New Source of Income
While still in its early stages, DAOs are no longer just an exciting idea. A multitude of DAO projects and applications have emerged in areas such as venture capital, social media, and more, managing tens of billions of dollars in capital, providing real products and services to millions, and creating new ways for people to earn income.
Many foundational protocols in the decentralized world, such as Maker, Compound, and Curve, aim to return some or all decision-making power to the community once they mature and actively adopt the DAO governance model. According to DeepDAO data from June 2022, there are approximately 4,833 DAOs with a total of 10.2 billion dollars in assets under management, with 2,224 being active DAOs and 95 DAOs managing over 1 million dollars, accounting for about 95% of the total assets. There are now 353 DAOs with more than 100 members, a six-fold increase from 44 in September 2021.
Currently, DAOs have evolved into various categories, such as Protocol DAOs, Investment DAOs, Grants DAOs, Service DAOs, Social DAOs, Media DAOs, Collector DAOs, DAO Operating Systems, and more.
The Benefits of Participating in DAO
There are several compelling reasons why participating in a DAO can be a wise investment, including:
- Flexible Work: Joining a DAO organization is easy, with no restrictions based on nationality or location. Members can easily join and leave as they please, connected only by the tokens they hold.
- Multiple Income Streams: The openness of the crypto economy allows individuals to participate in multiple DAOs and crypto networks, allowing them to diversify their sources of income and returns on ownership. For instance, a person based in Dubai can earn benefits from DAOs in the United States, United Kingdom, Thailand, and other countries. Traditional companies often have restrictions on working hours and locations.
- A Deep Investment: In a traditional labor market, workers only receive wages for their labor. But in a DAO, a reputation system captures the work behavior of its members, such as contributions to the DAO, governance voting history, token holdings, and more. The better a member's reputation and contribution, the higher the long-term distribution value they can expect.
Limitations of DAO: Interests can become isolated functional islands
While the organizational structure and concept of DAO align with the Web3.0 spirit, its practical implementation has fallen short due to the limited scope of its functions. This often results in the formation of user groups that are highly similar and focused on a single interest, leading to a narrow scope of the organization. This limited scope can hinder the growth of a larger ecosystem and result in tools that cater only to the specific needs of these organizations, ultimately resulting in isolated functional islands.
In contrast, MetaTdex appeals to a diverse range of users and offers a range of product forms. During its listing in Hong Kong, the MetaTdex meta-asset cross-chain bridge connects users with varying investment preferences, such as stocks and cryptocurrency. This approach to Web3.0 brokerage DAO aims to cater to a broad range of fields and users, rather than a single-interest group, thereby avoiding the phenomenon of isolated islands in terms of asset allocation.
What is Web3.0 Brokerage DAO?
Web3.0 Brokerage DAO is the central driving force behind the Meta Assets Cross-Chain Bridge, fully supporting its mission of promoting, expanding, and building its ecosystem. It was established by the MetaTdex community and is open to individuals worldwide, regardless of their nationality or location. The primary objective of the Web3.0 Brokerage DAO is to provide everyone with the opportunity for cross-regional arbitrage and multi-asset allocation.
By enabling decentralized resource allocation, Web3.0 Brokerage DAO allows for large-scale collaboration and division of labor among its members from different regions of the world. This brings a new method of "coordination, measurement, and reward" to the meta-asset cross-chain bridge ecosystem and opens up new revenue-generating opportunities for its users. In turn, this will encourage more and more people to shift from single-form asset investment to multi-dimensional asset investment.
The Unique Characteristics of Web3.0 Brokerage DAO
Web3.0 Brokerage DAO serves as the trust foundation of the meta-asset cross-chain bridge, innovating the stock incentive model, ensuring compliance, and actively engaging with traditional financial institutions. Unlike many DAOs, it prioritizes a secure and reliable external environment, rather than pure decentralization.
- Dual Incentives: The DAO incorporates stock-like assets into its member incentives, creating a dual incentive system for tokens and stocks.
- Universal Goal: The goal of enabling cross-border investment and convenient exchange of different forms of assets is a common demand among both individual and institutional investors globally.
- Regulated: Regulators such as the China Securities Regulatory Commission and stock exchanges indirectly support the smooth operation of the Web3.0 Brokerage DAO.
- Resource Integration: The DAO integrates users and capital flows from stocks, securities, and the crypto market, advancing toward its vision in a more inclusive manner.
- Compliant Decentralization: MetaTdex has achieved dual compliance through licenses or Fiat currency channels in various regions, including the US, Dubai, and Hong Kong, ensuring the security of its members' assets.
The method of capturing value in Web3.0 Brokerage DAO
The method of capturing value in Web3.0 Brokerage DAO is through the meta-asset cross-chain bridge product offered by MetaTdex. At present, benefits from listed stocks in Hong Kong are being made available. Users can invest using the stable currency USDT on the Polygon chain and receive both TT, the MetaTdex platform currency, and their own stocks. Before official listing on the Hong Kong Stock Exchange, the stock component will be displayed as a unique NFT. After the stock market opens, it can be converted into stock tokens and traded freely. Members of the Web3.0 Brokerage DAO can earn excess currency and stock rewards, as well as incentives for exceptional contributions.
The Web3.0 Brokerage DAO membership system can be viewed on the MetaTdex product page and is divided into six-member types: brokerage angels, junior brokerages, intermediate brokerages, senior brokerages, super brokerages, and national brokerages, each with varying rewards. Members of the Brokerage DAO can either upgrade their level through purchases or earn benefits through referrals.
In conclusion, with the advantage of Hong Kong's favorable environment for Web3.0 companies, MetaTdex is set to go public in the city. The focus has shifted from asset and user competition to enhancing mutual aid liquidity. The goal-oriented and strong communication characteristics of Web3.0 brokerage DAO, along with its innovative incentive model and compliance links, have brought a new perspective to the operation of Web3.0 finance and DAOs.
DAOs provide ongoing economic benefits to its users and serve as a connecting bridge for projects to engage valuable members. We look forward to seeing more people reaping rich rewards from various DAO organizations.