0x Takes Steps Towards Decentralizing Governance: Report

0x takes steps towards decentralizing governance with the price of the token surges so let’s read more about it in the latest altcoin news today.

In a post today from the governance and research forums, the team of 0x takes steps towards decentralizing their governance by creating a “community-owned treasury” as the post reads:

 “As we continue our mission to create a tokenized world where all value can flow freely, 0x Labs intends to experiment with seed-funding a community treasury managed by a DAO. To establish the DAO, 0x Labs will identify a set of bootstrap delegates that will shepherd the initial steps of governance decentralization.”

Remember the “Comprehensive DEX aggregator performance analysis” @0xProject shared last October?

This👇🏻 is the “test in prod” versionhttps://t.co/aRFknBKwlB#DeFi https://t.co/f9tHbrEeSI

— Theo Gonella 🍵 (@theogonella) February 12, 2021

According to the platform’s product manager at 0x Labs Theo Gonella, the longtime community members should not be caught off guard by the move to initiate the decentralization:

 “We originally shared our vision around the protocol’s progressive decentralization in 2017, when we introduced ZRX, 0x’s governance token. We have always envisioned that ZRX holders would one day be in full control of all aspects of the project – from managing the Community Treasury to driving protocol upgrades.”

The move came in a very productive and important period for the project. The v4 update to their mainnet led to a rally in the price of the native ZRX token in the past month and about 7 days ago, 0x Labs closed a $15 million fundraising round that was led by Pantera Capital. ZRX is now at $1.81 which marks a 300% increase per month. The governance isn’t taking the backseat in the protocol development by Gonella says that the fully open governance could be in place as the year ends:

 “Managing a community treasury is the natural first step. It will enable ZRX holders to get familiar with the governance system and fully experiment while still having some safe boundaries in place. The next step is to expand the system’s reach to all aspects of the protocol, including upgrades that have just been made easier with the recent 0x v4 launch.”

 

In moving to establish the DAO structure, 0x joins an industry-wide effort to decentralized governance, and also the rival aggregator 1inch moved to DAO governance in 2020 so it also announced a second round of airdropped governance tokens as an attack on Uniswap. Balancer Labs as well opened up a new discussion on the AMM v2 yield farming plans to the community which is a part of the goal to establish better-decentralized governance through the governance token distribution.