User:MetaVerde/sandbox

Honeyswap
Honeyswap is a decentralized exchange, or dex, on the XDAI blockchain. It is uniquely conceived as a means to fund 1Hive DAO, which live-tests computer models of token distribution in a uniquely inclusive economic community.

An experiment in governance
Honeyswap is run by 1Hive, an Aragon DAO, in which decisions are made by the entire community. The conviction voting system is used, weighting both time and amount of stake to reach a threshold to pass proposals, which can be written by anyone in the community. The community participates in governance through the DAO’s cryptocurrency, Honey, and also provides opportunities for anyone participating in the community to be awarded Honey thus increasing their stake in participation.

An experiment in economics
Movements of tokens in a community, or “tokenomics” models on Ethereum are often swayed by the entry barrier of high transaction costs, even to claim “free” resources. Honeyswap mitigates this barrier by being on the Ethereum layer2 scaling solution, xdai chain. The  open-source software model allows many iterations to be simultaneously executed as software is often copied and run by many different groups, each with their own interpretations of the software. Honeyswap, “cloned” from another open-source decentralized exchange, Uniswap, then tied to a DAO, and xdai chain, a modification of Ethereum blockchain, as well as Uniswap, are examples of such iteration.

Other technology used
Vitalik Buterin, the founder of Ethereum, pointed to the possibility of projects being run completely  by contracts, without hierarchical systems for the people involved. Honeyswap, the first exchange run by an open DAO community, partners with many projects to attempt to model this ideal. Projects such as cadCAD computer model outcomes of different financial incentives, implementations such as Aragon Court work out decentralized dispute resolution ,  and apps like BrightID work to prevent non-humans from participating.