Cryptocurrency exchange Ethfinex, the sister exchange of Bitfinex, has launched a test decentralized autonomous organization (DAO), the company confirmed in a blog post on June 12.
Ethfinex — which earlier this month launched a decentralized over-the-counter (OTC) trading platform — said it wants to decentralize control of its operations.
The DAO was built by DAOstack and is known as efxDAO, with an initial funding budget of $5,000.
“Today we reach an important milestone in our path to decentralised governance of Ethfinex,” the exchange’s community lead, Ben Wilson, wrote in the blog post. Wilson added:
“We have collaborated with decentralisation protocol experts DAOstack to create an experimental funding Decentralised Autonomous Organisation (DAO), efxDAO.”
EfxDAO has a preliminary membership of 23 people, with plans to expand rapidly in the future. Those members have the power to decide how exchange funds are used in a decentralized manner.
Speaking to cryptocurrency industry news outlet Decrypt, however, Ethfinex’s co-founder, Will Harborne, said that the decision to reimagine governance went beyond ideology.
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