On August 14, the latest edition of “DAO Friends, Please Stay,” the 18th installment by HTX DAO, centered on the topic “Behind the Upgrade of the HTX DAO White Paper: How Institutional Experiments Evolve into Real Pathways?” The event featured insights from HTX DAO Core Builder Liu Ye, along with notable figures from Helium and other cryptocurrency experts. Discussions revolved around crucial subjects such as modifications to the HTX DAO white paper, challenges in system implementations, fostering community engagement, and compliance strategies. The dialogue also aimed to explore future prospects for on-chain financial governance and the trajectory of $HTX.
Understanding the White Paper Update
The recent revision of the HTX DAO white paper signifies more than just an update to the text; it represents a pivotal shift in direction. The organization is transitioning from a traditional exchange model to becoming a leading force in on-chain financial governance. The goal is to establish a user-centric financial ecosystem where every participant has both decision-making power and the right to profits. The updated document translates previously vague concepts into concrete, actionable strategies, detailing the governance scope and specific instances that enhance community comprehension of the project’s trajectory and operational plans.
The new version of the HTX DAO white paper emphasizes that the long-term vitality of the DAO is rooted in a well-defined governance incentive structure. It recognizes user activities—such as voting, trading, staking, and content creation—as contributions to governance. This results in tangible rewards through mechanisms like points, airdrops, and profit distributions. Additionally, ecosystem partners like Huobi HTX and TRON are reinforcing community ties through practices such as token burns, repurchases, and airdrops, thus creating a positive feedback loop of “participation—profit—re-participation” that encourages users to take an active role in governance and enhances the DAO’s overall vitality and appeal.
Furthermore, the governance capabilities of HTX DAO are set to expand into a wider ecological arena. This includes granting governance rights to modules like Launchpad, Launchpool, and on-chain asset management, as well as exploring governance frameworks for emerging financial sectors such as real-world assets (RWA), liquid staking derivatives (LSD), stablecoins, and cross-chain solutions. The ultimate aim is for HTX DAO to evolve into a “financial sovereign haven,” managed by global stakeholders, offering them real value and participatory dividends on-chain.
During the live session, Liu Ye openly shared that the impetus for the white paper’s revision stemmed from an external audit associated with compliance applications in Europe and the United States. This prompted the team to reevaluate the white paper, revealing that previous content lacked clarity on the integration of DAO principles with decentralized exchanges. The team has since gained a deeper understanding of governance mechanisms, implementation strategies, and future planning, necessitating adjustments to reflect these insights. For instance, the economic model has shifted from a “liquidity donation” approach to a “quarterly burn” mechanism, set to be implemented in the third quarter of 2024. This model incorporates a strong deflationary strategy, allocating 50% of platform revenues for the repurchase and burning of $HTX every quarter.
Liu Ye stressed that the white paper should not only represent the team’s latest insights and adjustments but also serve as a comprehensive and authoritative resource that allows interested users to grasp the project’s development and strategic shifts clearly. Helium views HTX DAO as a mature organization, equipped with the characteristics of a “scales” tool, enhanced by a modular operational framework that forms its foundational aspect. Jing Yi, a member of Bluebird Club, commented that the white paper encapsulates the philosophy of “users as participants and participants as beneficiaries,” effectively rallying the community’s enthusiasm and initiative.
Commitment to Long-Term Goals
During the live broadcast, Liu Ye elaborated on the evolution of the voting recommendation system. She emphasized the importance of first understanding the issues this mechanism aims to address and the real benefits it can deliver to users. Moreover, a well-structured incentive system is crucial for attracting and retaining long-term participants. Liu Ye pointed out that, similar to long-term projects, the voting mechanism will encounter fluctuations—experiencing both peaks and plateaus. The focus should be on maintaining a long-term perspective, addressing challenges as they arise, and viewing the governance journey as a continuous development process.
She further articulated that ensuring ongoing user benefits is not about gaining popularity in the short term but about refining the governance mechanism over a period of one or two years to establish a robust system. In the next 6 to 12 months, the priorities will include validating the voting mechanism’s effectiveness, establishing a treasury and points system to visualize contributions, and granting developer permissions on the official website, thereby enabling collaborative DAO construction.
Striving for Compliance and Decentralization
In response to inquiries about how HTX DAO balances compliance with decentralization, Liu Ye asserted that since its inception, the organization has regarded “long-termism” as its guiding principle, especially in the context of an evolving regulatory landscape. She believes that the simultaneous focus of capital and regulatory bodies on the crypto industry indicates a shift towards broader societal acceptance and a move toward compliance. Consequently, HTX DAO aims to embrace compliant development proactively.
Liu Ye acknowledged common misconceptions and concerns regarding compliance, clarifying that laws and regulations serve to protect the rights of the majority and ensure fairness and stability. For HTX DAO, navigating compliance presents both a challenge and an opportunity for healthier, more sustainable growth. However, she noted that achieving true decentralization is a gradual process. Liu Ye admitted that the team’s initial interpretation of decentralization was somewhat simplistic, assuming it merely involved allowing everyone a voice in decision-making. Experiential learning has shown that many votes may reflect personal biases rather than informed decisions aligned with long-term development goals.
To address this, HTX DAO has implemented a “pilot” strategy—testing governance mechanisms and product solutions on a smaller scale before broadening their application. This method allows for the identification and rectification of potential issues while balancing safety and efficiency. Liu Ye reiterated that while some immediate decisions may not be fully decentralized, maintaining a clear direction and commitment to ultimate decentralization is essential for accountability.
In conclusion, Liu Ye emphasized that the DAO team possesses considerable resources and expertise. The core builder, Sun Yuchen, brings experience in global compliance, financial innovation, and blockchain application implementation, providing a robust foundation for HTX DAO to navigate international regulatory shifts. She believes that compliance and decentralization should not be seen as opposing forces but rather as two parallel paths that will enhance HTX DAO’s maturation and global competitiveness.
About HTX DAO
HTX DAO operates as a multi-chain decentralized autonomous organization, showcasing a novel approach to governance. Unlike conventional corporate structures, it employs a decentralized governance model comprising diverse groups dedicated to fostering the organization’s success. HTX DAO’s ecosystem promotes open values, encouraging all participants to contribute suggestions that facilitate the organization’s development. ChainCatcher advises readers to approach blockchain with a rational mindset, enhance risk awareness, and exercise caution regarding various virtual token offerings and speculative activities. All content provided is strictly market-related information or opinions, and does not constitute any form of investment advice. If any sensitive information is identified within the content, please report it for prompt attention.
