A deep dive into DeXe’s partnership with HOT
We previously talked here about how DeXe’s partnership with HOT is turning the latter’s 300k+ “villages” into subDAOs. Yet, the implications of the partnership run so deep, that it’s worth taking a closer look and breaking it down into what the partnership means for each of DeXe, HOT, and their communities.
To really understand the significance of bringing DeXe Protocol to HOT, it’s first important to understand the history of HOT. It started as a Telegram-based self-custody wallet and soon became an entire ecosystem, integrating a number of bridges and containing many apps inside. In short, the HOT Wallet is a hub for its massive user community to interact with the wider Web3 universe without leaving Telegram. This is significant because Telegram has recently emerged as a leading place for communities, trading, news consumption, and more. So the HOT Wallet is meeting the communities where they are, making the adoption of DAOs and Web3 easier.
To mine the $HOT, the user joins a “village” (in effect, a Telegram group), and 5% of his mining proceeds go to this village. But then what? How can a Telegram group manage a joint treasury or agree on contentious governance decisions without total chaos? This is where DeXe Protocol comes in.
DeXe is itself already one of the biggest DAO infrastructures on the BNB Chain. And at its core is DeXe Protocol, an open-source solution for building and governing any kind of a DAO. However flexible, however complex, or however simple the community wants to make it. Already, the dexe.io interface is making it easy for communities to create and govern their DAOs based on DeXe Protocol. HOT Wallet’s massive, 16 million user community has a need to create not just a highly flexible DAO but also at least 300,000 subDAOs, each with its own governance structure.
This is easy to do with DeXe Protocol, where each subDAO’s creator can specify quorum, voting length, and other rules specifically for that subDAO. It’s also easy to define how each subDAO interacts with the overall HOT DAO. Using proposals, subDAOs can make sure that the voices of each member and of each subDAO are heard. It’s an incredibly effective way to manage their treasuries and for each subDAO to organize in a way that fits them best. There are also mechanisms for the DAO to reward subDAO members for beneficial behavior (and vice versa). DeXe Protocol uses custom smart contracts that can interact with each other and any outside protocol. But for the user, this can all be abstracted away into simple UX clicking and filling in the desired information (like which wallet addresses to include in governance or which ones to send a particular reward to).
As a result of the partnership, DeXe gives HOT DAO the multi-layer governance it seeks, where the villages are on-chain subDAOs and can interact via on-chain, transparent transactions in a meta governance/meta transactional manner. To understand how it works in practice, look at the recent example where HOT held a trading contest where 15 villages won various prizes. Now that villages will be on-chain subDAOs powered by DeXe Protocol, these winnings could be distributed much more easily, automatically even. More complex competitions can be implemented. Villages can coordinate better for higher chances of winning the contest. Villagers can manage the winnings with more ease and openness, giving each villager more confidence that the contest is worth participating in on an individual level and mobilizing more villagers to participate actively.
Moreover, DeXe and HOT are together creating a programmable economy where, for example, outside projects can do product placement within HOT DAO quests, with the villages directly financially benefiting. Or you can look at how many transactions — and, therefore, gas fees — a contest for a 16-million-strong community can generate. Some blockchains could offer very lucrative rewards and incentives to be chosen for such activities, with the villages again benefitting. It’s a programmable economy at its best: decentralized, automated, transparent, with many sides benefitting. The DeXe Protocol infrastructure as the backbone makes it not only possible but easy.
Previously, interactions in Telegram were pretty much stuck there, providing little value. But with DeXe, HOT DAO can now extract much more value, transparency, and functionality from those interactions. By moving the villages on-chain, DeXe literally creates a mechanic for any Telegram chat to easily create a DAO within a Telegram application. Telegram users don’t need to leave Telegram, but rather can join or create a DAO in a few clicks in that very Telegram application. Under the hood, they’ll be using the HOT MPC Wallet and natively integrated DeXe Protocol smart contracts. But, of course, most of that is abstracted away. So for the user, it’s just a simple use of Telegram that they know well and are very comfortable with. As a bonus, these users are getting comfortable with Web3 without Web3 being pushed on them, so this is very beneficial to adoption.
And adoption is the theme here with the DeXe x HOT partnership: DeXe is bringing 16 million new users onto its tooling, creating a use case of a multi-layer governance with one DAO and 300k+ subDAOs; HOT is getting a mechanism for dramatically expanding on what it can do with its community, empowering the villages to make more decisions and participate even more actively in HOT’s programmable economy model. Of course, the big winners are Web3 and communities, which work better together thanks to such drivers of innovation as DeXe and HOT.
Stay tuned!
