- The much-anticipated XAODAO initiative is expected to encourage a decentralized decision-making process and enhance innovation on the XRPL.
- XAODAO is reportedly based on three key principles: decentralization, blockchain technology, and member participation.
Ripple has unveiled the launch of a decentralized organization, XAODAO, to usher in a new era of innovation on the XRP Ledger (XRPL). According to the post shared by its official X handle, it is expected to operate as a next-generation governance engine created to empower members on the XRPL to “participate, vote, build, and fund real innovation.”
Created to facilitate key decision-making processes, XAODAO is reported to thrive on three main principles: Decentralization, Blockchain Technology, and Member Participation.
Per the information, this decentralized organization empowers decision-making by ensuring that the power and control are shifted from a central authority to the community. Already, the decentralized nature of the network has been confirmed by Ripple CTO David Schwartz, who indicated that XRPL has no rivalrous feature, as outlined in our recent blog post.
Most importantly, XAODAO has been meticulously designed to ensure transparency, security, and reliable operations.
Meanwhile, a renowned crypto influencer identified as WrathofKahneman has pointed out that the operations of the XAODAO make it more than “just another Decentralized Finance (DeFi) project.” According to him, it is a community governance DAO for the XRPL to allocate development funding.
Also, his research shows that this initiative has legal accountability. As noted in our earlier post, the AMMClawback amendment was implemented in January to strengthen its regulatory compliance. However, it is currently not known whether it would use Flare, Xahau, Stellar, or even EVM.
XAODAO and the XRPLF
With voting and tooling expected to be seen in mid-2015, WrathofKahneman believes that XAODAO has already made a huge presence in the ecosystem as the new XRP Ledger Foundation (XRPLF) by-laws recognize it as a founding member. Meanwhile, it was being formed when the XRPLF was launched. Since its inception, XRPLF has undergone several updates to secure its operation, especially after a JavaScript security risk was flagged, as we covered in our latest report.
At the time of the XRPLF(2) launch, it was still being formed. How this XRPLF consideration occurred is not well attested in publicly available notes, but we do have the by-laws used as articles of incorporation in France and the XRPLF blog.
Earlier, the team behind this decentralized organization detailed that the decision-making under this formation would be conducted through four main phases – propose, vote, influence, and repeat. In this context, fresh ideas proposed by members would be subjected to voting with a “fair weight cap”. Voting would also be done during a fixed window. After this, results would be tallied and posted publicly.
According to another post, the team disclosed that this initiative was motivated by the need for XRPL to have community governance. With this, XAODAO makes the network more accessible, inclusive, and innovative.
Amid this, the native token of the ecosystem, XRP, is struggling to break through as it declines by 0.11% in the last 24 hours to trade at $2.1.
According to our recent analysis, XRP could stage a surprising breakout to $14 in the near term. As also mentioned in our previous publication, the asset could hit $100 in the long term, but this would depend on some factors.
