Bitomni DAO

The Bitomni DAO forms the governance framework of Bitomni, functioning as a decentralized autonomous organization (DAO) that operates and steers the direction of Bitomni’s products and services. As a public good owned by no one, the Bitomni DAO exemplifies a decentralized governance model where control and decision-making are distributed across stakeholders.

Creation and Configuration of the DAO

The Bitomni DAO is a Service Nervous System (SNS) that will be established using the latest Network Nervous System (NNS)-approved SNS canisters. The DAO’s initial configuration, permanently held and publicly inspectable within the SNS, sets the foundation for transferring control from the founding developers to the DAO. Upon creation, the SNS will take over the existing Bitomni operations, ensuring that all modifications to the protocol are governed through DAO proposals.

The formation of the Bitomni DAO begins with a proposal to the NNS detailing the parameters for a decentralization sale and initial token distribution. Approval of this proposal triggers the sale of BITO tokens, decentralizing governance and securing funds for ongoing development and growth. Post-sale, the DAO assumes complete control over Bitomni’s services, products, and treasury, managing upgrades and financial resources through the SNS.

Voting Mechanism and Rewards

The DAO operates on a proposal-based system. Any member can submit proposals, and BITO neuron holders vote on them. Voting power within the DAO is enhanced by neurons’ dissolve delay—the time required to liquidate a neuron into tokens. Longer dissolve delays yield higher voting power, aligning long-term interests with Bitomni’s strategic goals.

Neuron Voting and Rewards System

Voting rewards are distributed based on the voting power of neurons, encouraging active participation in governance. The rewards, calculated daily, are proportional to the individual voting power of participating neurons against the total for that day. Neurons can accumulate rewards as maturity, which can be disbursed or reinvested into further voting power. The annual distribution of voting rewards is initially set at 2.5% of the total token supply.

Strategic Importance of the DAO

The DAO’s role extends beyond governance; it is pivotal in fostering community engagement and growth. Bitomni incentivizes usage and network expansion by rewarding users with BITO tokens for positive engagement and referrals. This approach enhances the user experience and cultivates a robust community of advocates essential for Bitomni’s market penetration.

Trust and Security

Trust is foundational to the DAO’s operations. Hosted on the Internet Computer, known for its unstoppable and decentralized nature, the DAO leverages the platform’s robust security features to ensure the integrity and reliability of its governance processes. The NNS's transparent and automatic initiation of the DAO further solidifies trust among token holders, securing their investment and participation in a truly decentralized ecosystem.

The Bitomni DAO is crucial for navigating the competitive landscape of BTCFi applications. With its innovative governance model, incentivization strategies, and robust security measures, the DAO is not just governing Bitomni’s operations—it’s driving its success and adoption in the BTCFi marketplace and Web3 space.