Relcko Governance DAO

Voting for Relcko:

RLKO with a unique smart contract works as a decentralized governance platform dedicated to Relcko. It makes it easy for the Relcko community to create and vote on proposals, with veRel, the governance token of Relcko.

About Relcko veRL DAO?​

Relcko DAO (veRel) is a community-led grants program that fosters community growth and innovation in the Relcko ecosystem by serving as a gateway for teams building on top of RLKO

Use of Relcko veRel:

Relcko veRL DAO is a community-led grants program to fund ideas submitted by Relcko’s community, with a focus on empowering a wider network of community and Real estate developers.

What are governance tokens?:

Governance tokens are cryptocurrencies that are the key to on-chain decision-making. Unlike crypto assets such as Bitcoin which are used only as a means of payment, governance tokens incentivize community participation by giving holders voting powers for the future direction of the crypto project.

Specifically, these tokens give holders the right to vote on specific decisions made by the network, such as changes to the software code, protocol upgrades, bug fixes, feature implementation, and more. All of this gives governance token holders real power, allowing them to directly influence the development, operation, and future direction of a Defi protocol or blockchain network.

The aim of governance tokens is to create a more decentralized system that reduces risk and increases trust for all participants. They also provide an incentive for people to participate in the network and contribute towards its growth, which can lead to greater adoption of the protocol itself. This, in turn, would strengthen the network and increase its value over time.

How do governance tokens work?:

Governance tokens work by providing holders with a certain weight in the voting system, depending on the number of coins they hold. Those who hold more tokens have greater governance power and more influence on how the network operates, meaning their votes are weighted more heavily than those who hold fewer coins.

This is in contrast to a democratic system, where everyone has an equal vote regardless of how many assets they own.

Once users cast their votes, a consensus mechanism is used to assess the collective opinion of all token holders and decide which changes should be implemented. This means that any proposed changes to the network must receive approval from a certain percentage of token holders before it is approved. Votes are tallied and enacted automatically via smart contracts so that no tampering by malicious actors can occur.

This system ensures that no single user or entity has too much control over the network and its operations, encouraging an increased level of decentralization.

Here's what a typical on-chain governance system with a governance token may look like:

One token = one vote The proposal is accepted if at least 51% of participating tokens vote in favor Funds from the community treasury are allocated to the proposal's implementation if passed

• Note that such a setup is not universal. Instead, each protocol is free to use its own tokenomics and voting process.

Advantages of governance tokens:

Decentralized decision-making: Allow users to make decisions pertaining to a protocol or blockchain network without having to rely on centralized entities. By protecting from centralized governance, they help prevent any one entity from gaining too much control over the ecosystem.

Decentralized funding: Token holders can use their governance tokens to vote on proposals for the development of the underlying protocol, and these funds are then allocated directly from the token holders themselves. This helps ensure that projects are funded by those who actually use and benefit from them.

Community engagement: Incentivize community engagement and participation. Community members are more likely to take an active interest in the network and its success if they have voting rights and a direct say in the project's future.

Transparent governance: Governance tokens can provide a transparent and auditable record of decisions within a network. This helps to increase trust and accountability with community members.

Flexibility and agility: Allow for more flexibility and agility in the decision-making process. The decentralized nature of governance protocols means that decisions can be made quickly and efficiently without the need for bureaucratic processes.

Incentivizing contributions: Governance tokens can also be used to incentivize contributions to the network. For example, community members may be rewarded for providing liquidity or contributing to the development of the ecosystem.