Decentralization is the critical innovation of the crypto and DeFi sector. Every benefit in the blockchain space ultimately derives from the ability to remove the middlemen and single points of failure that typify conventional online systems. As an AMM, Ruby.Exchange is a core piece of infrastructure for the DeFi sector and, by extension, for the emerging decentralized Web3 movement.
The only way Ruby can operate securely and effectively is as a decentralized autonomous organization (DAO). Ruby DAO will govern, maintain, and safeguard the Ruby Exchange Protocol to ensure the long-term sustainability of the AMM and other vital ecosystem components.
Ruby DAO: Pushing The Frontiers Of Decentralization
Ruby.Exchange is built on the Cypherpunk principle that a widely dispersed system can’t be shut down, taking into account the reality that this requires dispersal of governance and economic influence (token holdings) as well as dispersal of blockchain infrastructure. However, the functionality of a blockchain determines the nature of the services created upon it, and sends an implicit signal about the type of users for whom they are built.
To give a key example, high gas fees discourage all but the largest token holders from participating in on-chain governance on Ethereum L1. Ruby’s use of the SKALE network therefore has very real implications for decentralization, since zero-gas transactions help democratize access to governance.
On SKALE, even the smallest RUBY holders can make their voices heard without being economically disadvantaged, enabling a step-change in engagement and decentralization.
DAOs As A Building Block Of Web3
Decentralization is the core benefit of DeFi and the wider Web3 movement, because all of the properties embodied by Web3 derive from it: Security, transparency, resilience, efficiency, and data immutability and integrity, to name a few.
The only way that any DeFi or Web3 service can maintain these benefits is to eliminate centralization wherever possible, from both their infrastructure and their governance.
AMMs like Ruby.Exchange are the critical components of DeFi ecosystems, providing hubs for liquidity, users, and dapp developers. Their importance means that any AMM bears an especially high degree of responsibility to remain open, neutral, and secure. To compromise these values would be to compromise the very nature of decentralization itself.
An AMM built for the people must be run by the people. It follows that the governance structure for the Ruby Exchange Protocol must be accessible, inclusive, and decentralized, ensuring that every stakeholder — whether trader, LP, token holder, or developer — can make their voice heard. Ruby DAO is therefore the only acceptable means of organizing the human component of the Ruby ecosystem on SKALE.
Writing History Together
With awareness and adoption of crypto and DeFi soaring, online services, the financial sector, the nature of money, and even the concept of value itself are being redefined. No one involved in this space should overlook the fact that DeFi is at the forefront of immense social and political changes.
Ruby DAO exists to ensure that the protocol stays on the right side of the history that is unfolding before us. Community is crucial. Participation is vital. Decentralization is everything.