How Kadena can benefit from DAOs

How Kadena can benefit from DAOs

DAOs offer a new governance model that helps increase community engagement and respond to research of common interest. Appearing on the Ethereum network, they have gradually developed across the industry.

The Kadena network is in a transition phase. After the launch of the mainnet and then the first applications (wallet, DEX, NFT, launchpad), the community is awaiting the arrival of new types of applications and to have their voices heard.

By applying decentralized governance, the eckoDAO team is developing the framework and modular tooling to empowering builders in setting up DAOs, build DApps and fostering new projects from the ground up.

Why did eckoDEX choose decentralized governance?

eckoDEX is the most important decentralized exchange of the Kadena network since it has the largest TVL. Therefore has a responsibility for the future of the network.

This is why the eckoDAO team integrated the decentralized spirit which is the essence of Kadena's philosophy and POW chains. No part of the $KDX tokenomics was planned for the VCs and only a small part for the team. Most of the tokens have been provided for the community and development (IDO, liquidity mining, DAO treasury).

KDX Distribution - eckoDEX

The last six months have allowed the tokens distribution to continue and this has contributed to the increase in TVL. The token dispersion has enabled a new phase of decentralization since users can stake and lock their tokens to accrue governance voting power and receive part of the swap fees to incentivise long-term lockup. But thanks to this Governance Mining initiative, users are able to participate in an interactive roadmap, the next stage of eckoDEX.

The calculation of the voting power mitigates the domination of the DAO by whales, favouring decentralization. The latter is important in a decentralized finance protocol because this decentralized governance will avoid both the pursuit of short-term profit and the commitment of the entire community.

The Kadena ideology is supported by DAOs

The Kadena cryptocurrency tokenomics was built to foster network decentralization. 70% of the KDA token are reserved for mining and only 6% for investors. This means that the investors weighted distribution will gradually decrease. Thus the KDA will be increasingly in the hands of the community over time subject to the prevalence of mining pools such as NoPool (A Kadena Eco grantee).

Decentralized pooled cryptomining • NoPool
A Stratum mining pool with Kadena support and the goals of no centralization, no emission footprint or conventional fees for low-emission miners, and no performance compromise

In addition, the PACT programming language, which makes it possible to code smart-contracts on the network, directly integrates a governance configuration. The smart-contracts on Kadena are upgradeable and it is possible to choose who can modify them, meaning we can decide on collective governance of these upgrades and foster a collaborative and innovative roadmap for DApps.

Decentralization in its entirety has therefore always been favoured by the Kadena team. The implementation of DAOs is therefore only a logical step in this path and only in optimising its iterative structure to each purpose will they become successful.

We can't state enough the value PACT has in blockchain DApp development and at eckoDAO we're committed to providing open-source repos that strive for its adoption.

NFTs, a testing ground for DAOs

Finally, the DAO implementation will support the growth of the NFT market that has started to emerge on the Kadena network. Indeed, apart from the NFTs which will be useful in an application (for example the NFTs for games like Miners of Kadenia), the NFT collections serve above all as a right of entry into their community.

To cite some of these early collections - Blocks, KDA Mining club, KDA punks which have already succeeded in building a community around their collection, it is clear that there is a real expectation vis-à-vis this kind of project to deliver on content and sound governance.


Large collections of NFTs on Ethereum networks have benefited from the use of DAOs to engage the community in a real project. The best known example is the DAO around Apecoin which is linked to the Bored Apes Yacht Club collection which gradually leads to the establishment of the Otherside metaverse. It is therefore incentivised for the long-term commitment of the NFT communities of Kadena to utilise DAO framework and empower the user.


Throughout its infancy, the DApps on Kadena built the first applications with centralized governance by necessity to optimize their operations. Indeed, the implementation of a PACT, a relatively new language, forces developers to create all the tools they need without being able to rely on pre-existing libraries.

Supported by the PACT lang team and the recent direction towards empowering the developer - led by Kadena's dev experience lead, Randy, it is now more than ever desirable to build pioneering tech. The bear market has shown that in taking a step back and getting the foundations right, Kadena is here for the long-term.

eckoDAOs empowerment of decentralized governance is built increase community engagement and meet a clearly visible expectation. Thus, aiding Kadena to fulfil its destiny and become one of the driving ecosystems of web3.