As Lëtzblock welcomes a new board of directors, it announces an ambitious new project: transforming the community hub into a Decentralised Autonomous Organisation.
If successful, Lëtzblock says it will be a “groundbreaking achievement” for an association in the EU.
Since Lëtzblock was created by the Luxembourg Blockchain and DLT Association in 2018, blockchain has captured the public’s imagination. However, its potential for security, transparency and traceability of data across a business network has yet to be fully exploited in the business world.
Lëtzblock hopes to change that by taking the first steps to becoming a Decentralised Autonomous Organisation or DAO.
Homsy believes that as a crypto blockchain association, it’s crucial to “walk the walk” by testing new technologies like decentralised autonomous organisations (DAOs), which utilize blockchain, digital assets, and smart contracts to allocate resources, manage activities, and make decisions without a central governing body. However, Homsy clarified that Lëtzblock is still in the testing phase and won’t implement a DAO immediately.
A DAO is a legal structure that has no central governing body and uses blockchains, digital assets and other technologies to allocate resources, manage activities and make decisions.
It does this using logically-coded agreements known as smart contracts and by “automatically executing software code, DAOs can immutably implement predetermined functions,” The World Economic Forum (WEF) explains on its website.
DAOs are already bringing advantages to sectors as diverse as investment and philanthropy. And, thanks to open-source software, “blockchains, and programmable economic incentives, DAOs may be able to offer greater accountability and adaptability compared to traditional organizations […] DAOs may also be able to enhance equity by broadening governance participation to a variety of stakeholders and aligning incentives to effort and participation,” WEF writes.
Ensuring proper voting systems & follow-up
The specifics of how the DAO will operate within Lëtzblock have yet to be determined, however, the new committee will examine its use in meetings, where establishing a quorum would enable certain decisions to be taken. Additionally, when a membership fee is paid, access rights will be automated.
According to Homsy, the blockchain’s non-tempered intelligence would ensure all decisions are immutable, which could benefit companies seeking transparency, while also providing potential for carbon credits that can be fully audited.
Homsy adds that the potential for carbon credits is vast as it will make ESG claims fully auditable.
Head of the Lëtzblock executive committee Arnaud Wenger sees the association as a good fit to ensure proper voting systems and decisions are followed up. He says: “An association is a group of people who want to work together and to develop views and ideas and take actions. It is by the members and for the members.”
Anyone interested in participating in the DAO test is invited to reach out to the new committee. Head of communications Rushank Bardolia says: “The more the merrier because the more people there are in the chain, the more decentralised becomes autonomous.”
The current Lëtzblock board includes Biba Homsy as chair of the board, Arnaud Wenger, Rushank Bardolia, Romain Swertvaeger, Emilie Allaert, Alexis Prunier, Diego Ofano and Jérôme Sonnet.
