Have you ever struggled to understand why providing liquidity to your favorite crypto project’s token doesn’t give you a direct voice in governance?
Many Cosmos-based projects have tokens that do function primarily in a governance and/or gas fee role, but thin liquidity has plagued the Web3 space in general and the Cosmos corner of Web3 in particular.
With a new development from the team at DAODAO (https://daodao.zone), the advent of staking rewards payable to DAO members via onchain smart contract, we’re looking at a technical landscape that is rapidly changing. New capabilities baked into the DAODAO application enable users to create DAOs with staking rewards that pay out at customizable intervals. You used to have to build a whole blockchain or write a high complexity Solidity smart contract to achieve this result, and now you can do it for free via audited cosmwasm smart contract on Osmosis, the financial hub of the IBC community.
Better still, you don't even have to know what any of those words mean to get access to this highly functional piece of open source technology and use it to build an onchain community with properties the members agree upon.
I’m writing this short piece to share with you the vision behind one such new DAO today.
Meet the Osmosis Pool 1344 ($PAGE/$OSMO) Liquidity Provider’s DAO:
Governance, Meet Liquidity Mining Incentives
PageDAO has had an interesting time of things ever since the launch of the Page token in 2021. Back then, even basic staking rewards in the EVM environment were a substantial technical challenge. We launched on Ethereum Mainnet, bridged to Polygon soon thereafter, and the next year we entered the Interchain ecosystem using Gravity Bridge.
Ever since 2022, $PAGE has been a multichain token with a base smart contract controlled by a multisignature wallet on Ethereum Mainnet. PageDAO team members control this multisig, and its contract address is: 0xeEFe148D85Ef37Ec79ac62AD3c96A50411770a25.
This structure gives PageDAO a solid foundation for the token and ensures that $PAGE is able to flow freely throughout the Ethereum ecosystem as well as the Cosmos ecosystem where so many cool new tools are being built.
In our situation at PageDAO, it makes a lot of sense to use DAODAO because the control you get is so granular. The Osmosis blockchain is very reliable, and also very fast and very inexpensive, making it a great platform for important business such as governance of an early stage crypto project.
For us, the onchain functionality of the governance structures at DAODAO have been wonderful. Staking rewards have launched, two or three months back, giving PageDAO the general token structure we had been struggling to find our way to since 2021. But what if there was an even better innovation available, now that periodic reward issuance to stakers in an arbitrary DAO is possible?
The Big Idea
As Head of Governance at PageDAO, I deal with the token and the DAO structure constantly. And I will certainly say that the market response to staking rewards on the low-liquidity Page Token has been lackluster thus far. Perhaps people don’t know about it yet, or perhaps they’re waiting for something more.
I have an idea for this.
In January of 2024, PageDAO launched a limited liquidity mining experiment that successfully increased the liquidity of the token. At one point, there was over $1M in value in the pool.
The problem was that we, the DAO and its team, had very little contact with the market participants who found the project via Osmosis. This meant that we weren’t able to find out what these backers were hoping for, and almost as soon as the liquidity mining incentive period ended, the pool drained.
Governance is the means by which the members of the DAO communicate with each other about important DAO-related issues. Perhaps, if we were to direct liquidity mining incentives to a platform such as DAODAO, where locking liquidity in return for a streamed reward could be paired with a voice in governance, maybe then alignment could be reached between the various parties who come together to have an interest in the project and to support it.
That’s why I’ve founded the Pool 1344 DAO. In the fullness of time, this DAO may gain significant recognition within PageDAO’s growing ecosystem. One mechanism to be evaluated might be a liquidity mining incentive to make it more profitable to provide liquidity to the Page token. Integrating an incentive for locking liquidity into a governance framework could provide the same basic user experience that Cosmos powerusers have come to expect from the coins they have been watching, but with more granular control over the specifics than the typical Osmosis gauge. And without that hefty 400-$OSMO fee!
If you’re providing liquidity against $PAGE/$OSMO on Osmosis, (here: https://app.osmosis.zone/pool/1344), you can stake your tokens into this new DAO (it’s set to only 1-day unbonding while we work out some of the details!) to join our experiment here and put the work in to become officially recognized by PageDAO.
It won’t necessarily be an easy journey - but for literature and crypto lovers, few projects combine the values of both spaces the way PageDAO does. Our values at PageDAO are the real mission. We’re building technology, community, and honestly doing a lot of writing these days as well, but the goal is to make it better for everyone to read and write using free, open source software and distributed ledger technology because we firmly believe that access to the technology people need to share literature with one another should be a public good.
If you’re not already providing liquidity in this pool, you can do so and then stake your tokens to the Pool 1344 DAO to join it. Then, you’ll be able to submit proposals and get to know your fellow DAO members in our dedicated Telegram channel. We are working on a way to provide liquidity mining incentives through DAODAO’s staking mechanism, alongside governance and community for LPers, for the Pool 1344 DAO. Got questions? Join the new Telegram channel and ask away: https://t.me/+UHnvylyLiqJkNDYx
PageDAO is an open source collective working to build culture & community online in a new, decentralized way. Head to https://pagedao.org for more information or to join the DAO!
