MonkeDAO: The NFT DAO that is innovating Solana
But… I think it’s Solana’s turn this time since there are also great NFT innovative teams in the Solana ecosystem, and I’m here to write about them (;
Let’s start with: MonkeDAO
To understand this, we have to first understand the Solana Monkey Business NFT collection. SMB launched in 2021, and it’s a 5K NFT collection that has positioned itself very well in the Solana space since its launch. It’s commonly referred to as a “blue-chip” (meaning a well-established collection in the space).
The DAO was formed in August 25th, 2021. MonkeDAO is a community-run initiative and is not directly affiliated with nor under the management of SMB. This DAO has been the first on:
— Creating a NFT DAO
— Creating a DAO staking pool
— The first DAO to launch a Solana validator.
Let’s analyze this!
But uhh… What exactly is a Solana validator?
The Proof of History (PoH) protocol used by Solana is a cryptographic method for correctly ordering transactions and events recorded on the chain. Because of its architecture, transactions are ordered as they enter the network rather than by block. This overcomes the difficulty of agreeing on a time frame while ensuring instant finality for millions of transactions per second.
However, PoH is not Solana’s consensus process. It’s simply how the network increases Solana’s Proof of Stake (PoS) consensus mechanism’s speed. Solana’s Proof of Stake is intended for rapid confirmation of the current transaction sequence generated by the PoH generator, as well as voting and selecting the next PoH generator.
In Solana, a block is merely the word for the sequence of entries that validators vote on in order to obtain confirmation. Validators are the entities responsible for certifying the validity of these entries under Solana’s PoS consensus model.
Validators are extremely helpful for the chain, every action we take on the Solana blockchain (minting a NFT, transactions, etc) has been successfully recorded by a validator before. If you remember (or not), there was a Solana chain congestion not too long ago and it could quickly get solved because of the validators!
Validators are given Solana’s native token SOL by Stakers to help enhance their voting weight. Such behavior demonstrates a level of trust and confidence in the validators. Stakers delegate to ensure that validators cast honest votes, ensuring the network’s security.
And MonkeDAO set up their own validator.
Each $SOL staked in the pool is distributed to the Solana communities’ validators, with the goal of further decentralizing the network while also supporting all DAOs. As DAOPool continues to expand, it will also be looking to supply $SOL to more and more validators, further growing Solana as a whole
In short, their DAOpool that has the daoSOL token:
a) Helps the Solana ecosystem
b) Supports all DAOS.
c) Supports a network of community-run validators with the goal of helping others contribute to Solana.
d) Everyone is open to stake on it
I also highlight the effort taken on all of this, since there are two common issues when setting up a validator:
- The technical aspect of it can be challenging for groups that don't have that knowledge yet
- A lot of SOL needs to be staked in order to make the venture financially able
For the first problem, they first partnered up with GenesysGo by assisting in the initial setup and implementation, but now the DAO fully owns their validator and hardware!
And for the second, the DAO has thousands of supportive members that decided to stake with their validator. So far over $2M in USD is staked, as you can see below.
In summary, daoSOL lets users and DAO’s:
1) Earn staking rewards immediately upon depositing, without maintaining complex infrastructure or waiting periods
2) Unstake at any time by swapping on the secondary market (initially at Saber.so)
3) Stake with a diverse set of DAO managed validators
4) Put a DAO’s SOL-denominated treasury to work, by staking the SOL in a pool and earning APY, instead of it just sitting idle in the treasury wallet.
5) Increases the decentralization of the Solana network by putting more SOL to work for voting consensus.
Many NFT projects bring amazing things to the space, and I know we’ll keep seeing more and more innovative teams as the ecosystem grows. Thanks for reading, you can connect with me on Twitter (for helpful threads):
Don’t forget to support my thread on this topic! (:
- Blockdaemon, How Solana Validator Staking Works. https://blockdaemon.com/platform/validator-node/how-solana-staking-works/
- Cye Mouri, CryptoG, Primitive Money (2021). daoSOL — The Next Step in Decentralizing Solana. MonkeDAO. https://monkedao.medium.com/daosol-the-next-step-in-decentralizing-solana-7519e3b2bded
- SMB 681, (2022). DAOPool: DeFi for DAOs. MonkeDAO. https://monkedao.medium.com/daopool-defi-for-daos-3fac5868dde4
- MonkeDAO, https://monkedao.io/.
- Solana Monkey Business, https://solanamonkey.business/.