Nowadays, there are many decentralized platforms to launch a DAO. However, now we will talk about one of them where anyone can create your DAO within 90 seconds.
Colony is an Ethereum-based protocol that facilitates the creation and operation of DAOs. In this article, you will learn how to build a DAO in Colony.
What is a DAO?
Decentralized Autonomous Organizations (DAOs) are one of the top emerging technologies in the crypto space. DAOs have attracted the attention of enthusiasts worldwide as a unique and reliable way of governance. This is because DAOs are designed to have no central authority. Instead, governance is based on the decision of community members and token holders.
Since we went gasless earlier this week we've seen a HUGE increase in the number of new colonies. We're very happy that our new Metatransactions feature has finally reduced one of the last barriers of creating a DAO on Colony.
Start your colony today 👉https://t.co/acLrgJg3Ov
— Colony (@joincolony) July 15, 2022
The DAO ecosystem is still pretty much nascent and can be fairly difficult to navigate. However, Colony is out to change this narrative with its easy-to-use DAO framework. Furthermore, making it possible to create a DAO in less than two minutes.
What is Colony?
Colony has been around since 2014. Building and gathering resources for a truly effective infrastructure in a bid to usher in the future of human organizations. Colony introduces a unique and comprehensive framework for DAOs. Therefore, making it possible for interested persons to create a truly decentralized, trustless, and open-source DAO framework.
Also, Colony focuses on helping organizations operate as a network with increased autonomy as opposed to coordinating operations by a Manager. Therefore, users can easily issue ERC-20 tokens or link up their pre-existing token, hence providing it with governance properties. This DAO framework platform also helps redirect focus from endless community voting processes.
Moreover, Colony is connected with Coin Machine. Therefore, making it possible for users to easily sell their tokens at zero (0) transaction fees.
Starting on Wednesday 20th July, for 10 days, we’ll launch a new daily challenge that aims to spark brilliant and innovative web3 business ideas.
This is where we invite you to get creative and submit your own web3 unicorn ideas.
— Colony (@joincolony) July 18, 2022
How to Launch a DAO with Colony
1. Download and Set Up a Wallet
The first step to launching a DAO on Colony is to get an Ethereum (ETH) compatible wallet like Metamask. This is because it is impossible to log into Colony without an Ethereum wallet. The ETH wallet is free and easy to use. To enjoy better security it is advisable to also include a hardware wallet like Ledger or Trezor.
2. Get xDai Tokens
Colony operates on the xDAI network. This, in turn, means that xDai tokens currently power the Colony ecosystem. Therefore, users need to hold xDai tokens to be able to use Colony. xDai tokens are basically used to cover transaction fees on Colony. The fees are also relatively cheap. 0.1 XDAI is enough to cover the transaction costs of creating a DAO.
You can get a small amount of xDai token from faucets. However, to purchase larger amounts, you will need to bridge xDai tokens across different blockchains. xDai tokens can also be purchased directly with fiat currencies on platforms like Ramp, AscendEX, etc.
3. Connect The Wallet to xDai
The next step is to connect the Metamask wallet to the xDai network. The wallet will provide a notification prompting you to connect to the xDai network. If this notification doesn’t appear, you will need to manually connect the wallet to xDai. To manually connect your wallet, you need to:
- Open the browser extension
- Click on the ‘Profile’ icon and select ‘Add Network’. You will then be redirected to the wallet settings.
- Once there add in the xDai network details below;
– Network Name: xDai
– New RPC URL: https://rpc.xdaichain.com
– Chain ID: 100
– Symbol: xDai
– Block Explorer URL: https://blockscout.com/poa/xdai
- Click on the ‘Save’ icon and your wallet is now connected to the xDai network.
4. Create and Customize Your Account in Colony
Once the above steps have been completed, you can then easily create your account. You don’t need an email address or password. You just need to click on the ‘Connect’ icon, Choose your unique username and confirm the transaction. Here is a video about it:
5. Create Your Native Token
Every colony needs a native token. On this DAO platform, you can either create a new native token or connect an already existing ERC-20 token.
Note: It is impossible to change your colony’s native token. This means that it is imperative to choose your colony’s native token carefully.
6. Review and Sign Your Transactions
Once you’ve confirmed the details of your transactions as accurate, the next step is to sign and launch your colony on the blockchain. To do this, you only need to click on the ‘Continue’ Icon and then sign all the transactions to launch your colony.
XDAI Price Outlook
At the time of writing, xDai token was trading at $0.994950 with a 24-hour trading volume of $123,093. The token price is also down by 0.2% in the last 24 hours.
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