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- Since its inception, Cardano’s native decentralized exchange (DEX), SundaeSwap, has been under the sea of issues. Despite that, the platform has decided to become fully decentralized.
- In a blog post published on 28 February, the exchange revealed its plan to transfer the protocol management control to the community.
- The blog post also stated that in the meantime, the SundaeSwap development team created a governance category called “SundaeSwap” on the SundaeSwap discord to discuss future projects.
The launch of SundawSwap, Cardano’s native decentralized exchange (DEX), didn’t go smoothly, and since then, it has experienced one issue or another. Despite those hardships, the DEX continues to move forward. Now, it is planning to become a fully decentralized platform through community governance. This, it decided to implement after its Initial Stake Pool Offering created devastation on the decentralization of Cardano’s native token, ADA.
In a blog post published on 28 February, the exchange noted its plans to transfer the management of the protocol to the community, explaining the importance of this structure to attain complete decentralization.
One essential step towards a marketplace that is not centrally owned and facilitates a trustless engagement among community members is community guidance through smart contract controlled voting and governance.
Once the Babbage HFC upgrades come into force by IOG later in 2022, the exchange believes then the smart contract-controlled governance could be fully implemented.
What is SundaeDAO?
Meanwhile, the SundaeSwap development team created a governance category called “Sundae DAO” in the SundaeSwap discord for discussing governance proposals and temperature checks on upcoming future proposals, as per the blog post.
The team believes it will act as a starting kick towards complete DAO independence and will essentially be used for conducting community voting for light protocol proposals. Nonetheless, proposals that include significant protocol parameter changes will be required to go through the formal SundaeSwap Governance Interface.
Recalling previous community voting experiences of SundaeSwap, they were all disastrous. The initial Stake Pool Offering (ISPO) resulted in few stake pool operators getting control of billions of ADA. However, it quickly did a reverse ISPO to alter these changes. It did teach the lesson that the consequence could be far-reaching for the whole network.
Despite that, SundaeSwap is still the supremo of the Cardano network. SundaeSwap is the most popular decentralized exchange and dominates over 98% of the total number of ADA locked in its smart contract. $114.06m has been locked in SundaeSwap, out of Cardano’s $116.07 million DeFi Total Value Locked.
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Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
