Intro

Decentralizing Ecosystem Development on the XDC Network

Overview

The XDC Network stands as a beacon of decentralization, supported by a global network of validators. In its early stages, ecosystem development was guided by a coalition of key stakeholders and community leaders. This phase was crucial to distribute voting power broadly and prepare the community for a future of democratic governance. It ensured that the XDC tokens circulated widely to dilute centralized power, fostering a community ripe with maturity, loyalty, and the necessary knowledge to take on greater responsibilities.

Transition to a Community-led DAO

Recognizing the growth and readiness of our community, we are excited to announce a significant shift towards decentralized ecosystem development through a newly devised, sophisticated hybrid DAO model. This model is specifically designed for the XDC community, aiming to eliminate common pitfalls of traditional DAOs.

Funding Model Evolution

The XDC ecosystem development fund, initially endowed with 10B XDC, unlocks 250M XDC annually to support the network. Moving forward, this allocation will be governed increasingly by community consensus, marking a shift from centralized decision-making to a more democratic, decentralized approach. Starting in 2023, a portion of these funds will specifically support core protocol development, with the remainder available for community-supported projects. By 2024, the community will assume full responsibility for the allocation of the entire annual fund, distributed quarterly.

Leveraging AI for Enhanced Proposal Quality

Understanding the pivotal role of AI in technology evolution, we have integrated AI tools into the DaoFin framework to enhance the quality of proposals. This innovative approach assists in creating more effective proposals, increasing their likelihood of approval and driving meaningful progress, Increasing On-chain activities within the XDC Network.