A major milestone in the 3 year journey of Nectar: the token can now only be upgraded by a DAO.
Over December and January the bootstrap phase (initial distribution of reputation) took place for the necDAO - a decentralised autonomous organisation which will decide the future of the Nectar token and control a pool of funds (17,000+ ETH) that were pledged to the Nectar token via Ethfinex's fees.
From day 1 the DAO will now have 95 new members, however the initial distribution is just the start of the journey, with 150k reputation distribution, out of a theoretical 1 million cap which will be distributed over the next 2 years. From this solid base the DAO can now grow, with new members earning reputation by staking Nectar tokens into the DAO or by actively participating in making new proposals.
The launch of the necDAO allows the Nectar token to now take the next step in its evolution. A final ‘centralised’ upgrade was made to the Nectar ‘Controller’ contract this morning. This Controller contract is able to make upgrades to the logic of the Nectar ERC20 token, and historically also controlled transfers of NEC via a whitelist, and the monthly issuances of NEC to market makers on Ethfinex.
Whilst the technical component of the upgrade was simple, it represents something much greater. At the same time as removing legacy functionality, we have now transferred the ownership of this Controller to the nascent DAO. This is a symbolic step showing trust in the community of members who participated in the launch of the DAO, and means that:
- All future upgrades to the Nectar token and its Controller smart-contract must be submitted as proposals and accepted by the DAO before they are executed.
- All functionality of the Nectar token is now controlled by its holders.
- Supply policy (via minting and burning) could now theoretically be changed by proposals to the DAO.
The code for the upgrade can be found on the DeversiFi github, and the contract is deployed here. The updated Controller removes legacy whitelist and Ethfinex functionality, and prepares Nectar for its next steps.
This includes making it compatible with the planned DeversiFi fee auctions, through which DeversiFi will burn Nectar tokens in an increasing ratio, according to trading volume, kick-starting an exponential feedback loop creating value for Nectar token holders and traders on DeversiFi.
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