Count this as another sign that the scrappy market for decentralized finance is growing up.
Boardroom, a company developing a platform for DeFi governance, has completed a $2.2 million raise. The round was led by Standard Crypto, which was joined by a slew of digital asset investors including Slow Ventures, CoinFund, and Framework. The firm says it will use the fresh cash to build a suite of tools for DeFi power-users and protocols delegates to more seamlessly participate in governance decisions across projects.
Despite the breakneck growth of the DeFi market in recent months, governance has been fragmented and clunky. Stakeholders are forced to navigate disparate channels to access information about governance decisions and then vote, says Boardroom founder Kevin Nielson.
For instance, users who want to delegate their voting power to a third-party have to jump through a number of hoops to do so. In some cases token holders even have to self-delegate to vote on a given proposal (such as a change to interest rates offered on a DeFi lending platform).
In DeFi, users can offload their voting power to third-party delegates, but the process isn’t always straight forward and varies from protocol to protocol. In addition to simplifying delegation, Boardroom looks standardize the way in which protocol decisions are communicated to stakeholders. “We provide a standardization on top of the protocol,” said Nielson.
Part of that means moving projects from Discord channels and Twitter to the platform where they can more efficiently target stakeholders. In a sense, the platform resembles a DeFi-twist on Wall Street’s corporate governance platforms such as Nasdaq Boardvantage, which connects public company leadership with its board members.
In the future, the firm will offer a white-label service for DeFi projects as well, Nielson said.
“Think of it as governance as a service,” Nielson
Dfinity, the much-hyped and long-anticipated blockchain-based cloud computing project, today unveiled a token-based governance system that will be used to control its “internet computer.”
It’s the final milestone before the network’s public launch, which will occur later this year, according to a press statement.
Dfinity, which launched in 2018 and has raised more than $160 million in venture capital, aims to establish the basis for a new decentralized internet. In June, the network opened its doors to third-party developers. The newest piece, which it calls the “Network Nervous System” (NNS) is an “algorithmic governance system that onboards independent data centers to the network.”
At the center of the new governance system will be a token, called ICP (formerly called DFN). According to the release, ICP token holders will be able to lock their tokens within the NNS to create “neurons” that allow them to vote on new proposals.
The ICP tokens can also be used to power decentralized applications, similar to the way Ethereum gas works. Specifically, the tokens can be burned to create new “cycles,” which the company calls “the fuel” to run software on Dfinity.
Since the cycles will have a stable value, they will also function as a stablecoin for use in decentralized finance (DeFi) applications on the network, according to the release.
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