What You Need to Know About Panda Paradise NFT

First of all, Panda Paradise is home to randomly generated, non-fungible tokens (NFTs). There are 8,888 different pandas, each of them is completely unique. Besides, Panda Paradise was generated from a smart contract using more than 150 different hand-drawn traits. They are mined, stored, as well as traded on the Ethereum Blockchain.

Also, holding a Panda Paradise NFT is your access to our decentralized autonomous organization (DAO), which rewards members with a $BAMBOO utility token. However, do you know what DAO is?

What is DAO?

As stated earlier, DAO stands for a decentralized autonomous organization. It is an entity with no central leadership. More importantly, decisions get made from the bottom-up, governed by a community organized around a specific set of rules enforced by a blockchain.

DAOs are internet-native organizations collectively owned as well as managed by their members. Such organizations have built-in treasuries that are only accessible with the approval of their members. What you need to know is that decisions are made via proposals the group votes on during a specified period.

A decentralized autonomous organization works without hierarchical management and can have a large number of purposes. For instance, freelancer networks where contracts pool their funds to pay for software subscriptions, charitable organizations where members approve donations, as well as venture capital firms owned by a group, are all possible with these organizations.

It is very important to distinguish a DAO, an internet-native organization, from the DAO, one of the first such organizations ever created.

How does a decentralized autonomous organization (DAO) work?

Panda Paradise NFT: DAO — Source: blockchainhub.net

As previously mentioned, a DAO is an organization where decisions get made from the bottom-up; a collective of members owns the organization. Hopefully, there are various ways to participate in a DAO, typically through the ownership of a token.

Such organizations operate using smart contracts, which are basically chunks of code that automatically execute whenever a set of criteria are met. It is worth pointing out that smart contracts are deployed on numerous blockchains nowadays, even though Ethereum was the first to use them.

Also, these smart contracts establish the DAO’s rules. As a reminder, those with a stake in a decentralized autonomous organization (DAO) then get voting rights as well as may influence how the organization operates by deciding on or creating new governance proposals.

Besides, this model prevents DAOs from being spammed with proposals: A proposal will only pass once the majority of stakeholders approve it. How that majority is determined differs from DAO to DAO and is specified in the smart contracts.

Decentralized autonomous organizations are fully autonomous as well as transparent. As DAOs are built on open-source blockchains, anyone can view their code. It is noteworthy that anyone can also audit their built-in treasuries, as the blockchain records all financial transactions.

But why do we need DAOs?

Being internet-native organizations, DAOs have a number of advantages over traditional organizations. For example, one serious advantage of DAOs is the lack of trust required between two parties. While a traditional organization involves a lot of trust in the people behind it – especially on behalf of investors – in the case of DAOs, only the code needs to be trusted.

Trusting that code is easier because it is publicly available as well as can be rigorously tested before launch. More importantly, every action a DAO takes after being launched has to be approved by the community and is completely transparent as well as verifiable.

Such an organization has no hierarchical structure. Nevertheless, it can still accomplish tasks and grow while being controlled by stakeholders via its native token. The lack of hierarchy means any stakeholder can come up with an innovative idea that the entire group will consider and improve upon.

Moreover, internal disputes are often easily solved through the voting system, in line with the pre-written in the smart contract.

By allowing investors to pool funds, decentralized autonomous organizations also give them a chance to invest in early-stage startups as well as decentralized projects while sharing the risk or any profits that may come out of them.

The principal-agent dilemma and its importance

One of the most noticeable advantages of DAOs is that DAOs offer a solution to the principal-agent dilemma. This dilemma represents a conflict in priorities between a person or group (the principal) and those making decisions as well as acting on their behalf (the agent).

Problems can happen in some situations, with a common one being in the relationship between stakeholders and the CEO. The agent (the company’s CEO) may work in a way that is not in line with the priorities as well as goals determined by the principal (the stakeholders) and instead act in their own self-interest.

Another typical example of the principal-agent dilemma happens when the agent takes excessive risk because the principal bears the burden. For instance, a trader can use extreme leverage in order to chase a performance bonus, knowing the organization will cover any downside.

It would help if you remembered that DAOs solve the principal-agent dilemma through community governance. Notably, stakeholders aren’t forced to join a DAO and only do so after understanding the rules that govern a DAO.

Stakeholders don’t need to trust any agent (the CEO) acting on stakeholders’ behalf and instead work as part of a group whose incentives are aligned.

Besides, token holders’ interests align as the nature of a DAO motivates them not to be hostile. Since holders have a stake in the network, they will want to see it succeed. So, acting against it would be acting against their self-interests.

As you already know, the article’s title is “What you need to know about Panda Paradise NFT.” However, we must cover two important topics before discussing Panda Paradise NFT.

Disadvantages of decentralized autonomous organizations

DAOs have their advantages and disadvantages. Decentralized autonomous organizations are an extremely new technology that has attracted criticism due to lingering concerns regarding their legality, security, as well as structure.

Unfortunately, the DAO hack also raised security concerns, as flaws in smart contracts can be hard to fix even after flaws are spotted.

Decentralized autonomous organizations can be distributed across multiple jurisdictions, and there is no legal framework for them. Thus, any legal issues that may arise will likely require those involved to deal with numerous regional laws in a complicated legal battle.

The United States Securities and Exchange Commission (SEC)published an interesting report. According to the SEC, the DAO sold securities in the form of tokens on the Ethereum blockchain without authorization, breaching portions of securities law in the United States.

Examples of DAOs

DAOs gained popularity over the last several years and are now completely integrated into many blockchain projects. Moreover, the decentralized finance (DeFi) space uses DAOs to allow applications to become fully decentralized, for instance.

To some people, the Bitcoin network is the earliest example of a DAO there is. It is worth noting that the network scales via community agreement, even though most network participants have never met each other. The network also doesn’t have an organized governance mechanism, and instead, miners and nodes have to signal support.

Nevertheless, Bitcoin is not seen as a DAO by today’s standards. By current standards, Dash would be the first true DAO, as Dash has a governance mechanism that enables stakeholders to vote on the use of its treasury.

Importantly, other, more advanced DAOs, including decentralized networks built on top of the Ethereum blockchain, are responsible for launching cryptocurrency-backed stablecoins. In certain cases, the organizations that initially launched these DAOs slowly give away control of the project to one day become unimportant. Interestingly, token holders can actively vote on governance proposals to hire new contributors, etc.

One old but interesting fact, in 2020, a DeFi lending protocol launched its own governance token as well as distributed its token through a liquidity mining process. Basically, anyone who interacted with the protocol would receive tokens as a reward. Other projects have since replicated as well as adapted the model.

As of 2022, the list of DAOs is extensive. We should mention that some projects are still looking to achieve complete decentralization through the DAO model; however, it is worth noting that they are only a few years old and have yet to achieve their final goals as well as objectives.

Interesting details about Panda Paradise NFT

It is quite easy to purchase a panda. You may buy a Panda Paradise NFT from Panda Paradise’s collection on the OpenSea collection.

Do you know what is $BAMBOO and what staking means?

$BAMBOO will be an ERC-20 utility token airdropped to staked Panda NFTs. It is very important to understand that $BAMBOO=1 $BAMBOO. And that has no value.

Interestingly, as a symbol of gratitude, 50% of the mint funds will be used to buy bluechip NFTs for the DAO vault.

Furthermore, the Panda Paradise DAO vault will be fractionalized on Fractional Art as well as distributed daily to Panda Paradise NFT holders.

Some people might also ask, “Are some Pandas rarer than others?”

Every Panda has unique traits as well as attributes, but some traits are more rare and special than others. For example, many Pandas may have a basketball cap; however, only a limited number of Pandas may have a Crown. Also, you may view all possible traits for Panda Paradise under “properties” on OpenSea (the largest NFT marketplace). You can also use a third-party tool known as Rarity Tools, which helps calculate how rare the combination of attributes on Panda Paradise are, as well as assign them a “Rarity Score.”

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