Community governance is a concept that dates back to the early days of cryptocurrency, when intrepid cypherpunks pooled resources and shared ideas and manipulated each other’s proposals. With everyone heading in the same direction, but each one bringing their own talents and theories to the table, the idea was that those most committed to the project were the best to influence its development.
This principle eventually led to the emergence of Decentralized Autonomous Organizations – or DAOs for short. These open source organizations consisted of developers, engineers, programmers, and lay community members, and were intended to automate decisions without the need for a traditional management structure or steering board.
Since Ethereum founder Vitalik Buterin described DAOs as the holy grail of organization types in a 2013 article, there have been dozens of DAOs deployed on the blockchain, and while each has a decision-making mechanism at its core, the overall projects have been very diverse. Unfortunately, many DAOs suffered from low voter turnout while some suffered reputation damage from the well-publicized hack.
Reimagining the DAO Model
Now, a completely new type of DAO is being developed by the Bribe defi protocol. In short, Bribe is a DAO tools platform that coordinates voters into massive alliances and allows “presenters” to borrow a larger share of the voting pool to influence proposals they feel most strongly about. In exchange for lending their voting share, each community member earns a percentage of the winning bid, denominated in the USDC stablecoin.
Bribe’s mind trust calls its concept the Extractable Value by Voter (VEV); In one fell swoop, the opportunity costs of voters are reduced, DAO participation enhanced, and voting use cases increased. It’s DAO 2.0, and the idea has caught the attention of several prominent DeFi investors.
In late 2021, the protocol raised $4 million in a funding round led by Spartan Group, after attracting investments from the likes of Hypersphere, Fundamental Labs, Dragonfly, Rarestone Capital, IOSG, Fenbushi Capital, and others. The protocol is incubated by Composable Labs and Advanced Blockchain AG.
Speaking about the increase, Condorcet, founder of Bribe, said: “Our early supporters have joined us in formalizing this fundamental mechanism by which DAOs make decisions and reach a quorum: voting markets.
“By bringing this activity to the chain, we are ensuring that users of the hash can also participate, in addition to providing the data and case studies needed to understand what is going on ‘under the hood’ in DAO ecosystems.”
Bribery Elimination Protocol
As with other DAO-based projects, Bribe has its own privately named original token that manages governance and revenue sharing. In this case, the $1 BRIBE token represents an individual voting stake in the BRIBE pool chosen by the owner.
It was recently announced that $BRIBE will be available for purchase via the Liquidity Bootstrapping Pool event in Copperlaunch scheduled for January 12, with a portion of any unsold tokens mapped into a liquidity pool on Uniswap or SushiSwap after LBP.
Of great interest is the upcoming release of Bribe’s first VEV product for governance tokens, the Aave Bribe suite, which is due to be released later this month. Soon, the Tokemak Bribe pool will be launched and more mergers are expected to be confirmed in the near future.
If Bribe achieves her lofty goal of stimulating participation in the protocol and helping DAOs to operate more effectively, expect her community to grow significantly in the coming months.