Blockchain technology had led to immense innovations in the financial sector since its inception a decade ago. Developers and teams have built and operated decentralized applications (DApps) on blockchains leading to major products that focus on decentralized finance (DeFi).
Despite the gains achieved so far, there are still significant problems limiting developers' scope to build and launch decentralized apps. This includes a functional organization structure within blockchains that enable the easy launch of dApp products.
The problems of scalability within most public blockchains also pose limitations as it becomes a bottleneck when trying to expand services on DApps. The use of a Decentralized Autonomous Organization (DAO) was believed to be the solution, but so far no decentralized gig economy has prevailed over giants like Uber and Fiverr.
DAO's main issue is that now it can only act as a voting machine, a shell structure, it cannot convey business operations. .However, several projects are now showing more than potential and today we want to show you how you can leverage these to launch your own decentralized gig economy platform today! For this example, we’ll use Metis Dao, a layer 2 open framework for the creation, management, and scale of DACs (Decentralized Autonomous Companies) intended to resolve these problems.
What is Metis DAO?
Metis Dao is a layer 2 open framework for creating, managing and scaling DACs (Decentralized Autonomous Companies). Metis aims to build a highly scalable, low-cost, and easy-to-use management mechanism for blockchain platforms.
Unlike other popular decentralized autonomous organizations (DAOs) that focus on voting functions, Metis focuses on building sustainable, decentralized companies on its Layer 2 blockchain via its DAC Framework.
Metis also improves on the existing Governance DAO used by regular DAO platforms to a new management DAO.
What is a Layer 2 Protocol?
Metis is able to achieve its goals by building a unique Layer 2 protocol. The Metis Layer 2 protocol is based on the Optimistic Rollup (OR) side chain. The protocol also integrates an Optimistic Governance (OG) to create a trustless and permissionless protocol.
To create a fully scalable decentralized framework, Metis has hard-forked the optimistic rollup, built its custom virtual machine, and deployed the ComCo framework. This enables the Layer 2 protocol to handle the complex management and computation of data from decentralized companies built on it.
Metis also uses a unique management DAO different from the traditional DAO system. In this DAO structure, every DApp created follows the rules constituted by its community members and stakeholders.
The management DAO implemented by Metis ensures that all community members can not only have a say in the governance of the DApp, but also participate in the business operation via machine-ruled rules and earn token incentives based on their contributions.
Ecosystem Ideal for DApps Building
Metis DAO offers a framework that is easy to use for DApp enthusiasts with no technical background to launch their decentralized company. All that is required is to take a few steps, and it generates a comprehensive environment for builders to manage community operation without worrying about complex deployment phases.
Metis has enough APIs and templates for developers to manipulate and add extra capabilities to their DApps. It offers a simplified way to use its tools and ensures that users can use DApps without the common complications of traditional blockchain platforms.
The Layer 2 protocol also ensures that scalability is achieved with the hard-forking of its Optimistic Rollup (OR) sidechain. This ensures that most transactions are performed solely on the Layer 2 network and rolled-up to the mainchain in batches to save the cost.
Furthermore, Metis supports multiple blockchain networks, and is scalable enough to support the adoption of DApps. Without further ado, let’s see how we can launch a Decentralized Gig Economy platform in 3 easy steps:
Step 1 – Create a Decentralized Autonomous Company (DAC)
A Decentralized Autonomous Company (DAC) is a subclass of a DAO, and could be seen as an evolved company in a traditional business scenario. As previously mentioned, it can be created using MetisDAO’s Metis Protocol, born to enrich DAO’s and expand on their use cases.
Let’s imagine an internet community collaborating on a project. They could easily create a DAC using the Metis Protocol. An Ethereum address would be assigned to the DAC, and would be used by the community to connect.
A DAC differs from a DAO through a “bond” staking mechanism. Members would need to stake “bonds” using a Meta Staking Contract to join the DAC. The staking mechanism serves as a commitment from each community member, ensuring their performance follows their promises.
A “pullback” mechanism would then be created to reward community members who did do what they said they would, and to punish away those who did not by taking away their staked bonds. Metis Protocol’s bond-staking system allows for the creation of a fair, transparent mechanism that empowers community members who actually contribute.
Step 2 – Create engagement in the community
After community members join the DAC and have staked their bonds, they can then use microservice tools to start collaborating on their project. These tools are backboned by the ComCo Framework, curatored by the community and include Task Management, Knowledge Management, and Event Management tools, for example.
These allow for the organization of new tasks and grants, for training new members. And for the organization of events such as hackathons. All collaborations would be recorded on a time-stamped Wiki, encrypted and stored on a sidechain for future validation.
Complex communities can be broken down into numerous Meta Collaborations. Every Meta Collaboration would be different and, as such, Metis leaves collaborators to negotiate on what they should collaborate on and on how to measure their results. Once consensus is reached, a Transaction Statement Contract is created and deployed on the sidechain.
Progress is then recorded on the Wiki and store for future governance purposes. Once collaborators are done and no one disagrees with the results, the sidechain’s state is changed to complete and the Meta Staking Contract is triggered, allocating the budget and its incentives.
In case there are disputes, an Arbitration service may be activated to freeze accounts and collect the staked bonds of community members who did not perform their duties.
Step 3 – Use Reputation Power
The incentives for gig economy workers would be centered around Reputation Power (RP). While staking represents a member’s commitment and willingness, the use of blockchain technology contains a worker’s collaboration history.
This history can be used to check his credentials. A gig economy worker who performs his duties as necessary and maintains staked bonds would accumulate RP in a decentralized business credential system, solving trust issues – future clients would prefer to work with gig economy workers with higher RP.
The Metis Protocol allows for the creation of such an executable environment for communities to facilitate distributed collaborations and one day compete with the likes of Fiverr and Uber. Incentives would ensure gig economy workers are properly rewarded, instead of increasing the profits of shareholders.