DAO is an exciting concept. Its core is to equalize power, realize multi-party decision-making, and eliminate uncontrollable risks caused by authoritarian governance as much as possible. DAO is a new type of management, born for governance.

The earliest DAO in the industry was The DAO, which aroused great repercussions, but was stolen due to contract issues, causing huge losses, and eventually led to a hard fork of Ethereum. Also because of the huge impact of The DAO incident, the subsequent development of DAO is far less powerful than before.

However, as the governance method that best fits the spirit of the blockchain, DAO must have its place in the ecological landscape of the blockchain and is an indispensable and important piece of the puzzle.

For example, DeFi, which also fits the spirit of the blockchain, is deeply integrated with DAO. Many well-known DeFi projects are themselves DAO models, such as Maker DAO, the most successful decentralized stablecoin issuance protocol, and the top-ranked decentralized exchange. The KyberDAO.

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First of all, it must be understood that Aragon is a DAO that provides tools for DAO organizations. Its core is to provide rich and easy-to-use DAO tools for creating and using DAO. Aragon was established in November 2016 and officially launched its mainnet in November 2018.

source:

source:https://scout.cool/aragon/mainnet

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2. Composition of Aragon products

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Aragon Network

Aragon Network is the most important basic service provided by Aragon, that is, the basic network for organizations to create and use DAO.

Aragon Network provides an easy-to-use DAO creation tool. Creating a DAO only requires 0.1ETH and a few minutes to fill in the data.

Aragon has 6 built-in templates. Different templates have different emphases. Organizations can choose templates that meet their needs according to their needs.

When creating an organization, you can freely set different governance parameters, such as minimum voting rate, passing percentage, voting period, voting buffer time, voting delay time, etc., and then you can create it successfully after simple configuration.

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Aragon Court 

Aragon Court is another important service provided by Aragon, Aragon Court.

Aragon Court provides arbitration services. If community members have a dispute over a certain matter, they can initiate arbitration by mortgaging a certain amount of Aragon token ANT, and also need to pay arbitration fees.

An important use of ANT tokens is introduced here, which is to generate ANJ by mortgaging ANT to become arbitration jurors, and arbitration jurors can obtain benefits through arbitration disputes.

If you want to become a juror, you need to mortgage at least 10,000 ANT tokens. The more ANT you mortgage, the greater the chance of being selected for arbitration. Generally, only 3 jurors will be selected for a dispute. If there is any objection to the arbitration result, appeal, It is possible to involve more jurors.

It can be seen from the figure below that a total of 4.25 million ANT tokens have been mortgaged, and there are a total of 261 arbitration jurors.

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Aragon Chain

The third part of the Aragon ecosystem is Aragon Chain. Aragon Chain is based on Cosmos. It is a chain specially built for DAO. Compared with Ethereum, it will be faster, cheaper and fully compatible with Ethereum.

Aragon Chain's native token is ARA, but what is special is that ARA is also generated by staking ANT. Owners of ARA tokens can obtain network fee income through staking.

This adds another important usage scenario for ANT, which is not actually a new token issued and will not disperse the value of the Aragon network.

Currently Aragon Chain has not yet launched.

From the perspective of the basic services provided by Aragon, Aragon is more of a tool attribute, and it is more difficult to capture the value of open tool products.

The general value capture methods of tools are mainly paid functions and advertising monetization. And these are not applicable in the blockchain field, at least not on Aragon, so it is more difficult to capture the value of Aragon tool attributes.

Through the establishment of the arbitration court, Aragon actually created a value capture method for some users who hold ANT, because initiating arbitration requires payment of fees. Since the launch of the Arbitration Court in February, jurors have earned a total of about US$3,300 so far.

Secondly, the emergence of Aragon Chain has injected capital attributes into ANT. After obtaining ARA through ANT, it can obtain service fee income, and at the same time, it should also be able to participate in the governance of Aragon Chain.

The last one is the governance value of ANT itself. In the past, the governance value was not valued by people, but now we can find that the governance token is not worthless, but the governance value of different products is different.

Governance rights can be simply understood as company management. If you have a certain share of governance, plus influence, etc., it may affect the future development direction of the agreement. When the scale and influence of the agreement reach a certain level, the development direction of the agreement may involve very large interest disputes, and this is where the value of the so-called governance token lies.

As the leader of DAO, Aragon's governance token itself has value. As for its value, it is closely related to the prosperity of the Aragon system.

Disclaimer: This article is the author's independent opinion, and does not represent the position of the Blockchain Institute (public account), nor does it constitute any investment opinion or suggestion.

References:

https://scout.cool/aragon/mainnet

https://court.aragon.org/dashboard

https://help.aragon.org/article/48-aragon-court-faq

https://wiki.aragon.org/network/aragon_network_token

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Disclaimer: This article is the author's independent opinion, and does not represent the position of the Blockchain Institute (public account), nor does it constitute any investment opinion or suggestion.