Duet will be governed by DAO(Decentralised Autonomous Organisation), the DUET token holders will be able to vote using Duet Protocol’s on-chain governance system, this proves to be a safe way to collaborate with strangers online.
The vote will cover every aspect of Duet’s ecosystem — such as approval of the listing of assets, acceptable collateral varieties, liquidation parameter adjustment, etc. In order to realize the smooth start of the DAO system, Duet will first get funding from qualified investors, develop core components, issue governance tokens, and carry out global promotion activities.
Users will have 2 major ways to get DUET token:
1. Support liquidity to the system or contribute to DUET rewards or;
2. Directly purchase on the secondary market.
Gradually, the Duet system will become more robust, and token holders will be rewarded for their contributions. By holding DUET tokens the user gets voting rights and subsequently the ability to influence the way it operates.
With the gradual maturity of each functional module and the distribution of tokens, Duet will become fully autonomous and completely independent from its original creators as well as anyone else for that matter, transparent, immutable, and incorruptible.
DAO operation is derived from the development of a traditional company mode. Many start-ups, especially platform-based, gain funds through selling equity to institutional investors, then the money is utilized to subsidize the platform service providers and consumers. Subsequently, the platforms get started smoothly and form a positive cycle.
Compared with the traditional way, the DAO platform on the blockchain simplifies the first financing step. The core mechanism of blockchain-based DAO is that it directly issues tokens with governance rights & dividend sharing, which will be given to platform contributors and users during daily operation. In theory, this could be a more efficient model, but it requires the core team to give up absolute control of the project.
In fact, this is exactly what the Duet project team did. In terms of token allocation, the founding team only kept 10% of the token allocation and keeping it unlocked for over two years while providing up to 40% of the token allocation for liquidity providers and governance participants. The shares acquired by early private investors are also extremely restrained, only about 5%. At the same time, the system plans to allocate 10% of tokens to community contributors; 4% of the tokens will be used to support Muse Museum, an international DAO research institute, to keep the project at the leading edge of the technical research, making it transparent and innovative. Stabilization Reserve will account for 30%, which will be used to stabilize the balance of supply and demand in the synthetic asset market and ensure the long-term sound development of the project.
Duet DAO Governance — Let’s form a band!
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