Many have come to recognize the value of governance in the gradual progression of many popular DeFi projects shifting major protocol decisions into the hands of the community.
As we begin to see the intersection of DeFi and DAOs with new initiatives like Kyber DAO, Synthetix DAO and PieDAO – just to name a few – it’s clear that more and more projects will look to leverage popular frameworks in the coming months.
Earlier this year, we covered the launch of Aragon Court – a distributed governance systems for DAOs built on Aragon.
Today the world's first digital jurisdiction opens its doors.
— Aragon 🦅 (@AragonProject) February 10, 2020
To summarize, users stake ANJ tokens for the opportunity to be drafted into dispute resolution on various inter-DAO issues. Since it’s launch, Aragon Court has largely used mock trials in order to test the interworking of the system.
However, what many may not have realized is jurors stand to be rewarded for simply keeping ANJ active throughout the life of the governance cycles.
Today, Aragon Court paid out its first subscription rewards to users who staked ANJ throughout the first Court Period.
Now while the size of these rewards is nothing to ride home about, the important thing to recognize is that a) Staking in the Aragon Court bears rewards outside of active participation and b) rewards will maintain a stable value for those who are not diligent in claiming them.
More so, the issuance of rewards in Dai further mitigates sell pressure against ANJ, making a strong value appreciation narrative for the bonding curve-based token.
What to Expect
With the first rewards being distributed, we can only assume that Aragon Court is gearing up for full usage in the coming weeks.
While we expect the number of court cases to be quite small, the uniqueness of governing distributed systems in a completely remote and permissionless fashion is quite interesting.
What would a court system look like on the internet?
2020 is the year of DAO experimentation. pic.twitter.com/2M3aISlnKB
— Brayton Williams (@BraytonKey) February 6, 2020
To stay up on all things Aragon Court, we recommend following the official Aragon Twitter here.
Cooper is the Editor of DeFi Rate and an active contributor to leading DeFi media outlets like The Defiant, DeFi Pulse, and Bankless. He works with early-stage teams through Fire Eyes DAO to incubate governance models and grassroots community development. He is an ambassador to Set Protocol and an author of a weekly publication called Token Tuesdays. To stay up with Cooper, follow him on Twitter.