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Polygon plans to introduce\u00a0a Decentralized Autonomous Organization (DAO) for ether’s DeFi ecosystem. According to an announcement, incorporating a DAO mechanism should add 100 million more users into the network. Moreover, a $100 million fund may help bring the blockchain’s DAO concept to light.\u00a0<\/strong><\/p>\n A DAO describes an ecosystem whereby users enforce governance actions without oversight from any central authority. Polygon’s goal is to incorporate such a system, allowing users to pitch their opinions on Ethereum’s DeFi industry.\u00a0<\/span><\/p>\n Thus, developers and users can share a common platform and discuss ideas that will lead to a stronger community. Moreover, launching a DAO feature facilitates better interoperability between crypto projects.\u00a0<\/span><\/p>\n Besides improving the connection between DeFi platforms, Polygon’s DAO funding hopes to develop on-ramps to digital wallets and institutions. Examples of crypto projects recently approved into the DAO concept include Quickswap, SushiSwap, Aave, and <\/span>Chainlink<\/span>.\u00a0<\/span><\/p>\n A further DeFi adoption rate may also occur as Polygon mergers with <\/span>0x protocol<\/span>. The partnership aims to use the $10 million DAO to fund projects leveraging the 0x APIs.\u00a0<\/span><\/p>\n Polygon conducted an in-depth evaluation on how it can approach the DAO concept. In the first method, token holders representing the DeFi community vote on various ideas driving the ecosystem.\u00a0<\/span><\/p>\n This approach is common on platforms such as BarnBridge, <\/span>Compound<\/span>, and many more. Furthermore, the DAO concept involves electing representatives from the network to work in groups or committees after their appointment.\u00a0<\/span><\/p>\n Remember, the community chooses these representatives. What’s more, Polygon admits that members may not have similar ideas or goals in most instances.\u00a0<\/span><\/p>\n So, the scaling solution hopes to kick-start the DAO idea by enabling committee members to campaign for their proposal. Council members are also given a three-month tenure duration to campaign and can face cancellation from the council if they fail to vocalize their proposal.\u00a0<\/span><\/p>\n<\/span>Improving DeFi’s Adoption Levels<\/b><\/span><\/h2>\n
<\/span>Criteria to Follow?<\/b><\/span><\/h2>\n