From institutional experimentation to real-world implementation, Master Liu elaborates on the significant upgrade of the HTX DAO white paper

On August 14, the 18th issue of "DAO Friends, Please Stay" by HTX DAO focused on the theme "Behind the Upgrade of the HTX DAO White Paper: How Institutional Experiments Evolve into Real Pathways?" It invited HTX DAO Core Builder Liu Ye, Helium, and other crypto KOLs to discuss key topics such as core adjustments to the HTX DAO white paper, challenges in implementing systems, enhancing community participation, and compliance responses, exploring the future of on-chain financial governance and the development direction of $HTX.

Behind the Update of the White Paper

The HTX DAO white paper has recently been updated, which is not just a textual update but a milestone declaration of direction—starting from the exchange, moving towards becoming the core force of on-chain financial governance, creating a user-driven financial free port where every participant has both decision-making and profit rights.

It is reported that the updated white paper refines the earlier abstract ideas into specific, actionable plans, clarifying the scope of governance authority and specific cases, allowing the community to better understand the practical path and development direction of the project.

The new HTX DAO white paper clarifies that the long-term momentum of the DAO comes from a clear governance incentive design, treating user behaviors such as voting, trading, staking, and content creation as governance contributions, and forming clear incentive feedback through points, airdrops, and profit returns. At the same time, ecological units like Huobi HTX and TRON are giving back to the community through mechanisms like burning, repurchasing, and airdrops, constructing a positive cycle of "participation—profit—re-participation," encouraging more users to engage in governance and continuously enhancing the vitality and ecological attractiveness of the DAO.

On this basis, the governance boundaries of HTX DAO will extend to a broader ecological field: including granting governance rights to modules such as Launchpad, Launchpool, and on-chain wealth management; exploring DAO control entrances for new financial sectors like RWA, LSD, stablecoins, and cross-chain bridges; promoting on-chain cooperative projects to gain traffic and distribution resources through HTX DAO governance. Ultimately, HTX DAO will gradually develop into a "financial sovereign haven" governed by global holders, enjoying real value, dividends, and belonging on-chain.

During the live broadcast, Liu Ye candidly stated that the direct reason for updating the white paper was the external review prompted by the application for compliance exchanges in Europe and the United States, which led the team to re-examine the white paper and find that the early content was somewhat vague regarding the integration of DAO and decentralized exchanges, lacking concrete and actionable explanations. On the other hand, the team has developed a clearer understanding of the governance mechanism, implementation path, and future planning of the DAO, necessitating an update to reflect these changes. For example, the economic model has been adjusted from the "liquidity donation" model to a "quarterly burn" mechanism in the third quarter of 2024—adopting a strong deflationary model, using 50% of platform revenue for repurchase and burning $HTX every quarter.

She emphasized that the white paper, as a standard for blockchain projects, should not only carry the team's latest thoughts, adjustments, and practical paths but also provide authoritative and comprehensive information sources, allowing users interested in the project to clearly understand its development direction and strategic adjustments.

In this regard, Helium believes that HTX DAO is a grown-up DAO, possessing the attributes of a "scales" tool, combined with a modular operational model, forming its core dimension. Bluebird Club member Jing Yi believes that the white paper embodies the concept that "users are participants, and participants are beneficiaries," effectively mobilizing the enthusiasm and initiative of community members.

Adhering to Long-Termism

During the live broadcast, Liu Ye discussed the development of the voting recommendation mechanism, pointing out that it is essential to first clarify what problems this mechanism is intended to solve and what actual benefits it can bring to users; secondly, a reasonable incentive system needs to be designed to attract and retain long-term participants.

She emphasized that the voting mechanism, similar to long-term projects, will inevitably go through periods of fluctuation—sometimes gaining popularity and sometimes hitting bottlenecks, but the key is to adhere to long-termism, continuously solving problems that arise in the process, and viewing the entire governance process with a developmental perspective.

Liu Ye further stated that allowing users to continuously benefit is not about gathering popularity through one or two phases but about perfecting the mechanism over one or two years to establish a successful governance system. In the next 6-12 months, the focus will be on three major areas: verifying the effectiveness of the voting mechanism; establishing a treasury and points system to visualize contribution benefits; and opening developer permissions on the official website, combining point incentives to form a DAO co-construction by all.

Seeking Balance Between Compliance and Decentralization

In response to media questions about "how HTX DAO seeks balance between compliance and decentralization," Liu Ye stated that since its inception, HTX DAO has regarded "long-termism" as its core philosophy, which has become particularly important in the context of the constantly changing global regulatory environment. She believes that when capital and regulatory forces simultaneously focus on the crypto industry, it signifies that the industry is moving towards broader social acceptance and inevitably towards compliance. Therefore, HTX DAO's attitude has always been to actively embrace and plan for compliant development.

She pointed out that many people have misunderstandings or even concerns about compliance, but essentially, laws and regulations are important mechanisms to protect the rights of the majority and maintain fairness and stability. For HTX DAO, this is not only a challenge but also an opportunity to develop in a healthier and more sustainable manner.

However, the ideal of decentralization is not achieved overnight. Liu Ye admitted, "The team's initial understanding of decentralization was a bit 'too loose,' thinking that DAO was just about letting everyone speak freely and vote on decisions. But practice has shown that most people's votes only represent their intentions, which may not be professional and can even be swayed by emotions, not aligning with long-term development rules."

To this end, HTX DAO has adopted a "pilot" strategy—first validating governance mechanisms and product solutions on a small scale before gradually expanding. This approach can both identify and correct potential issues while finding a balance between safety and efficiency. Liu Ye emphasized, "In the short term, certain phased decisions may not be completely decentralized, but as long as the direction is clear and we persist in the belief of ultimately achieving decentralization, we can have a clear conscience."

Liu Ye concluded that the DAO team possesses strong resources and experience reserves. The core builder Sun Yuchen's team has experience in global compliance, financial innovation, and the implementation of blockchain applications, providing solid support for HTX DAO to respond to international regulatory changes. In her view, compliance and decentralization are not opposites but two parallel paths for HTX DAO to mature and enhance its global competitiveness.

About HTX DAO

As a multi-chain deployed decentralized autonomous organization (DAO), HTX DAO showcases an innovative governance approach. Unlike traditional corporate structures, it adopts a decentralized governance structure composed of diverse groups, collectively committed to promoting the success of this organization. Its unique ecosystem advocates open values, encouraging all ecological participants to propose suggestions that can facilitate the development of HTX DAO.