Steemit Upgrading With New DAO

August 15, 2019 / by Crypto.IQ

Steemit, a project that set out to build a social-focused blockchain network, has announced a code upgrade that will bring major changes to the network’s development funding.

This will be Steem blockchain’s 21st hard fork and is set to be activated on August 27. This latest upgrade aims to address the platform’s system to fund its own development.

Steem is set to implement the new system via a decentralized autonomous organization (DAO), coupled with a worker proposal system that will enable Steem users to publish proposals and vote on which ones should receive funding. Voting on proposals is weighted according to the stake of each user.

The winning proposals will then receive funding directly from the DAO itself, creating a decentralized system which will distribute an estimated $1.5 million to $2 million annually, according to Steem developers.

While Steem’s DAO is similar to the Ethereum DAO, which infamously was hacked for $60 million in 2016 due to a code bug, the developers claim it is free of any security vulnerabilities of the original DAO.

Michael Vandeberg, senior blockchain engineer at Steemit, hopes the new funding system will attract more developers and entrepreneurs to start building on the platform:

“The Steem Proposal System is the best way to support entrepreneurs and Steem users who want to build projects on the Steem blockchain. This is a big step forward in the development of Steem. We look forward to more partnerships between Steemit and our community. The Steem Proposal System will help make that a reality.”

The project had a bright start, distributing over $100 million in Steem Dollars to users of the platform since its inception in 2016. With the ensuing bear market in 2018, Steemit has had its issues as well, with the firm laying off almost 70 percent of its staff, in order to sustain operational activities.

With the code upgrade, the project is set to refresh its funding system and hopefully continue to attract new users to its platform.