DeXe Protocol represents an innovative infrastructure for crafting and managing DAOs. The protocol aims to eliminate the weaknesses of the existing DAO ecosystems and develop an infrastructure that covers all the DAO needs.
In an exclusive interview with LetsExchange, Serhii Kravchenko, the CEO of DeXe, shares their vision of a DAO, highlights the benefits of their solutions compared to those already available in the market, and explains why AI may become the tool that streamlines decentralized governance.
LetsExchange: Why DAO infrastructure? What drove you to build a DAO creation platform, and what was missing from the current solutions?
DeXe: Our mission was to build a DAO that truly embodies decentralization, autonomy, and genuine self-governance. We wanted participants to have the power to govern without reliance on a central team or individuals.
When we began our journey, we noticed that the existing tools for building and managing DAOs were fragmented and incomplete. To create a fully functional DAO, teams had to use multiple independent platforms – some for discussions, others for voting and asset management. This setup added complexity and demotivated the teams and communities trying to manage their DAOs. On top of that, even all these fragmented tools combined couldn't deliver the level of transparency, autonomy, and complete decentralization that a genuine DAO requires.
With DeXe, we set out to offer a comprehensive solution – an all-in-one platform where every tool needed to create and manage a DAO is seamlessly integrated, streamlining the process and making governance accessible and efficient for all participants.
LetsExchange: What's the issue with leading DAO projects like Uniswap or Shiba Inu?
DeXe: Centralization. Many current DAOs face fundamental challenges, casting doubt on their decentralization and effectiveness. They're often still influenced by founding teams or large token holders. For example, whales or the team itself can hold enough votes to dominate decision-making, undermining the essence of distributed governance. This creates a "plutocracy," where decisions favor the few instead of the entire community.
This practice discourages active participation from smaller token holders, who may feel their voice needs to carry more weight. As a result, community engagement suffers because they lack any motivation, rewards, or understanding of what their vote truly means.
LetsExchange: How does DeXe's approach differ?
DeXe: We implemented a non-linear meritocratic voting system that reduces influence as a single holder's token count increases while experts are granted higher voting power. We also prioritize participant motivation by introducing reward mechanisms and vote delegation, allowing every DAO member to contribute without excessive time or financial commitments.
We aim for DAOs to be automated and transparent, with members using their expertise and creativity for decision-making.
LetsExchange: What problem does DeXe's platform solve, and what makes it unique?
DeXe: DeXe allows for the creation of DAOs of any complexity and anything you need to create programmable economies: meritocratic-based governance systems, delegation, reward systems, and meta-governance. These unique tools address the abovementioned issues: centralization, lack of motivation to participate in governance, and incentive imbalance.
We've integrated all necessary tools to eliminate reliance on multiple third-party solutions. Previously, you needed separate tools for discussion management, treasury, and smart contracts to build a full-fledged DAO. DeXe unified them in one place, offering an intuitive interface that lets you launch a DAO with just a few clicks.
LetsExchange: Can you elaborate on the meritocracy and programmable economy concepts?
DeXe: A meritocratic approach values participants' expertise over mere token ownership, fostering fairer governance and empowering active members to have a meaningful impact on decisions rather than favoring large token holders alone.
A built-in automated rewards system rewards members for participating in decision-making processes, including delegated voting rights. Members can delegate their voting rights to qualified experts or expert groups. Experts who receive delegated votes also earn rewards for their contributions, fostering strong incentives for effective governance.
This creates a closed triangle of efficiency, representing one possible variant of the Programmable Economy in which community members, experts, and the organization benefit.
Meta-governance facilitates the creation of sub-DAOs for specific tasks, effectively distributing responsibilities, which is especially important for large communities that require efficient coordination.
LetsExchange: The core idea behind DAOs is efficient people unification, right? This allows individuals from all over the world to organize on a more equitable basis. How do you see DAOs addressing uniquely human problems?
DeXe: Absolutely! DAOs are about automation, trust, and transparency. They enable us to ensure effective cooperation between people. Of course, some sectors, like the military or force-based management structures, may not be well-suited for full decentralization. However, for technology or processes that demand complete transparency, DAOs are ideal.
Take AI development, for instance. Many people today fear that centralized companies might manipulate this technology. DAOs can serve as a tool for AI governance, ensuring transparent control through consensus.
As Descartes once noted, many problems stem from the inability to find common ground. DAOs address this issue by resolving all matters exclusively through consensus, with majority votes counted and recorded on the blockchain. In the future, we will likely witness a convergence of AI and DAOs, forming automated governance systems where trust and transparency are paramount.
LetsExchange: AI and DAOs. How is it incorporated into DAO development on the DeXe platform?
DeXe: We're creating a system where AI can act as "delegates," trained to analyze data in specific areas like finance or marketing. These AI agents will handle routine decisions, following the organization's mission and keeping up with global trends. While humans will retain control over key decisions, these technologies will help automate DAO management, saving time, simplifying processes, and providing innovative ideas for consideration.
LetsExchange: Who would benefit from creating a DAO on your platform? What issues can DeXe help projects address?
DeXe: DeXe functions as account abstraction at its core, making it a versatile solution for practically any cryptocurrency project, from meme coins to complex DeFi setups. Anyone can leverage DeXe for a wide range of purposes – whether it's simple token creation and distribution, running airdrops, managing assets, or constructing intricate meta-governance structures.
LetsExchange: You mentioned meme coins. Are memes and DAOs a serious combination?
DeXe: Absolutely! Memes and DAOs are a natural fit, as memes are built on community and engagement. For example, look at major meme coins like Shiba Inu. Even after the founders stepped away, the community maintained the project, held the token, and even established a DAO to guide its future development.
With GraFun, we developed an innovative launch model based on the Fair Curve, which creates equitable token distribution conditions. In this model, a portion of token sales is allocated to a DAO treasury managed by the community, reducing manipulation risks and sudden price drops while protecting users. On GraFun's first day launch, over 30 DAOs for various meme coins were launched – and this is just the beginning!
LetsExchange: What's your take on the current meme coin market? Is there still potential for meme assets within the crypto community?
DeXe: At their core, meme coins, like the broader crypto space, are fundamentally driven by communities. A defining feature is that the community controls 100% of their supply, making them transparent and ideal candidates for decentralized governance through DAOs.
Meme coins are a unique phenomenon combining high risk with immense community engagement and fun. While they often lack fundamental value, their resilience and market presence demonstrate their potential. To support this evolution, we're developing tools that mitigate risks and enable communities to manage better and maximize their resources.
LetsExchange: What's your vision for the future of DAOs?
DeXe: DAOs represent a technological evolution in how people and collectives interact. While collectives have always existed and will continue to, DAOs are the next step – a logical innovation for enhancing collaboration between individuals, organizations, and even AI through transparent and efficient governance systems. We believe DAOs will be key in managing new technologies and assets and integrating them into everyday life and business. In the future, they will serve as a strong foundation for overseeing essential sectors such as artificial intelligence and large ecosystems. We are actively working on building the infrastructure needed to foster a future of decentralized collaboration. Whether you're launching a meme coin, tokenizing assets, or exploring the frontiers of DeSci, DeXe empowers communities to achieve their vision with unparalleled ease and efficiency.