Community Update #05 - The Era of DAOs

Exploring the Impact of DAOs and the Meaning of Habitat

Habitat Community Metrics 💚

  • ≈ 1200 Twitter Followers

  • ≈ 400 Email Subscribers

  • + 550 Members in Telegram & Discord

  • + 750 $HBT Tokenholders

Community Proposal - Reminder

This proposal is 2 weeks old and still up for signaling:

“Allow HBT-ETH LP tokenholders to vote.”

The proposal aims to enable LP Token holders to participate in voting. Right now, LP Tokenholders have no mechanism to use their balance as a voting share. The proposal needs more total votes and a higher quorum.

Liquidity in the Pool

  • The first 6 weeks of our LP Rewards will conclude this Wednesday

  • You still have another 6 weeks of farming HBT

  • Current yield you can earn: 42.32%

No Staking is required, simply add liquidity and hold.
Check your possible rewards and add liquidity here:

Liquidity in the Pool

The Era of DAOs

A new paradigm shift has started. Organisations are not owned and guided by a handful of big investors or C-Level employees but by a community of people. DAO structures are starting to become the center of progress and success in crypto. Simple ideas from the crowd can have a big impact on the direction and survival of a project. Just as in nature - a forest is not grown by a single tree but by many.

This post explores the revolutionizing effect of DAOs for crypto and online communities and how Habitat helps to scale & unite DAO power for a new Era.

Bottom-Up Organisation

Traditional top-down decision-making styles have flourished. Based on a pyramid scheme of power and control the people at the top make the calls. As a command base these undisclosed processes are intransparent but efficient.

With decentralized protocols and no real ownership in an open-source environment, these organizational structures and their shortcomings are being questioned. With the rise of DeFi, innovative DAO mechanics become the go-to solution for finding decision-making consensus among people with different interests and standings inside a big project. But DAOs are so much more.

Collective Ownership (Freedom)

No single entity or natural person is being responsible for the success of the organization. The community is.

The genesis team is mostly the caller of a project. Over time, the community takes over and fills roles on its own. As an example no one from the original team at is working on the project anymore - the community took over. Decentralized Autonomous Organisations act as a fluid and ever-changing organization which is only living in cyberspace itself, controlled through on-chain governance and smart-contracts.

Wisdom of the Crowd (Signaling)

At the traditional level feedback from users and participants is hard and costly to collect. Early adopters are requested for reviews and surveys
(A/B testing or user research). Always separate the organization from the user.

In DAOs token holders are also users. They have an incentive to govern and propose subjects that improve the product and their holdings in a very organic way. Their voice and competencies are being heard and eventually implemented.

DAOs Evolve to Global Coops (Funding)

Organizational power comes in hand with control over budget and its allocation. Cooperations/DAOs make funding decisions collectively which are transparent and open for everyone to discuss.

DAO Challenges

Currently, there are many challenges to overcome if a project wants to be managed like a DAO. Especially when used via the Ethereum Mainnet:

  • high gas fees decrease vote participation

  • plutocracy affects the legitimacy of an outcome

  • stopgap solutions making it complicated (switching from one tool to another)

  • prisoner’s dilemma - communities have to build the solution they need while others may benefit afterward (fork)

  • investing resources and time to further develop governance

Benefits of Habitat

Habitat is building a scalable governance layer based on an optimistic rollup. Meaning, instead of doing everything on the Ethereum Mainnet - Habitat builds a secure and fast layer to coordinate on. This layer is built as a people-owned ecosystem allowing to vote for new features, modules or parameter changes the entire rollup itself.


  • low gas fees (96% cheaper) with almost instant tx’n speed

  • allowing multiple voting modules and tools to prevent plutocracy and incentivize smaller holders

  • all-in-one solution platform that grows with the projects and their needs

  • crowdfunding new features and modules so everyone benefits

  • full community ownership - all rewards and fees are distributed to Habitat Stakeholders

  • increasing participation by utilizing incentive tools

  • testing new features and sharing best cases, every community can find their best workflow for governance

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