RootstockCollective has introduced the very first true decentralized autonomous organization (DAO) on Bitcoin Layer-2, Rootstock, and redefined the beneficiaries of the success of the network growth. As per the original design of Bitcoin, the only users that benefited from the growth were miners and people who held coins; this Bitcoin DAO rewards the builders creating applications and the backers who support them. Essentially, it is changing Bitcoin from being an asset that is only an inert form of digital gold to one that is actively governed and can be programmed as part of a governed economy.
The Bitcoin DAO Mechanism
The mechanics are quite simple. To participate, the key is the Rootstock Infrastructure Framework token (RIF). Backers stake their RIF to mint the stRIF tokens, which gives the voting power (1 RIF = 1 vote). In order to submit a funding proposal to the community for consideration, builders are required to stake at least 1,000 RIF tokens, thus ensuring serious applications. Once the community approves one or more builders’ project proposals, builders receive grants and must allocate a percentage of their funding to be distributed back to their supporters. This creates a virtuous circle of reciprocity between builder and backer.
To this point, statistics show surprising movement. In the first 24 hours after launch, 4.5 million RIF were staked to the DAO. As of today, there are over 34 million RIF staked to the DAO, as well as over 3.1 BTC have been issued to backers as Collective Rewards. The treasury that supports the DAO is sustainably funded because the DAO will receive around 19% of all Rootstock transaction fees; therefore, the DAO will continue to support the builders for at least the next several years.
Over 15 projects have already been backed, including Asami Club (social empowerment), Memora (blockchain time capsules), and Boltz (non-custodial Bitcoin bridging). Each represents a new use case on Bitcoin, from social media to asset inheritance.
What Comes Next
The Bitcoin DAO has made great improvements with an easy-to-use Reown AppKit for integrating into many wallets, such as MetaMask, Bitget Wallet, and Rabby. This will now lower the barrier to entry. With the new technologically built-in Collective SDK, where developers can leverage DAO governance and reward systems for creating new technology solutions: social login, gamified rewards for community engagement, NFT rewards, etc.
What’s with the RIF Token Price
The RIF token has been ranging between USD 0,028 and USD 0,044 since last December, signaling a steady accumulation phase. Trading at USD 0,034 at the time of writing, a 3.41% up in the last 24 hours, in line with the market trend.
