How IQ Protocol Can Empower DAO Tokenomics

As the blockchain industry grows, more and more sectors are being transformed on a technical and organizational level. One novel sector that is currently changing the world is decentralized autonomous organizations (DAOs). DAOs have the goal of operating in a decentralized fashion contrary to the corporate structure. It is an internet-native collective owned and managed by the DAO community, with built-in financial governance models that typically require the DAO’s collective approval. Every decision is governed by voting and proposals, ensuring everyone has a voice in the organization.

Although not all DAOs work exactly the same, we can think of DAOs offering two types of memberships: Token-based membership and shared-based membership. These membership types can determine the intricacies of how voting works and other essential parts of the DAO.

Token-based membership is usually permissionless with governance tokens that can be traded freely on exchanges. This type of membership allows token holders to gain access to voting. On the other hand, share-based DAOs are more permissioned but still quite open. Any interested member can submit a proposal to join them by offering some tribute or work. Shares directly represent the voting power, and members can exit any time by taking their shares.

Even though DAOs offer two types of membership, these aren’t enough to attract new members. In addition, the value of DAO tokens are usually strongly correlated with features or product offerings related to the DAO itself. Hence many DAOs with poor tokenomics suffer from lackluster value creation and transfer within the DAO ecosystem. These are some reasons as to why it is difficult for DAOs to grow in today’s highly competitive landscape.

IQ Protocol, developed by PARSIQ, is a risk-free lending and borrowing protocol that can help create robust circular tokenomics for DAOs

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https://blog.iq.space/how-iq-protocol-can-empower-dao-tokenomics-c3501e6f0b14