Paytomat DAO
By: Dmytro Baimuratov
Tags: Decentralization, Cryptocurrency, Blockchain, Bitcoin

Blockchain governance is a crucial issue which researchers have recently started to address. People build decentralized systems, yet these systems are still running under centralized management. Nevertheless, years ago the blockchain community came up with a concept of Decentralized Autonomous Organization (DAO)

Let’s walk through the key features DAO has in comparison to other governance models:

Immutable programmable contracts . Instead of relying on people and the risk of human error or malicious intent, each DAO has built-in smart contracts, which are pieces of code that you can execute on a blockchain. This mechanism eliminates the human factor, automates various processes and makes permanent record in immutable database, that is blockchain.

. Instead of relying on people and the risk of human error or malicious intent, each DAO has built-in smart contracts, which are pieces of code that you can execute on a blockchain. This mechanism eliminates the human factor, automates various processes and makes permanent record in immutable database, that is blockchain. Incentivized stakeholders . This one is similar to how typical corporations work. However, instead of several individuals there are thousands of people who can become stakeholders, that is masternodes, and receive the rights to vote on proposals. Most of the time, it requires acquiring a collateral of specific number of coins produced by this blockchain. In this case, the decisions a masternode makes directly impact the price of the coin and overall future of the project, which is why there’s no point of cheating the network by voting for unreliable or doubtful projects.

. This one is similar to how typical corporations work. However, instead of several individuals there are thousands of people who can become stakeholders, that is masternodes, and receive the rights to vote on proposals. Most of the time, it requires acquiring a collateral of specific number of coins produced by this blockchain. In this case, the decisions a masternode makes directly impact the price of the coin and overall future of the project, which is why there’s no point of cheating the network by voting for unreliable or doubtful projects. Decentralized voting . Unlike an ordinary company, anybody with an awesome idea or skill can apply for a proposal that can benefit the DAO over the long term. To receive the funds needed to accomplish the work, a proposal has to pass a percentage of votes by stakeholders of the network. That can stimulate an ongoing flow of talented entrepreneurs who are interested in the future of this particular project.

. Unlike an ordinary company, anybody with an awesome idea or skill can apply for a proposal that can benefit the DAO over the long term. To receive the funds needed to accomplish the work, a proposal has to pass a percentage of votes by stakeholders of the network. That can stimulate an ongoing flow of talented entrepreneurs who are interested in the future of this particular project. Blockchain-based budgeting system. Lastly, there is a budgeting mechanism that releases the exact amount of money requested by the community to accomplish the work they applied for.

Paytomat DAO

Paytomat DAO is similar to how a typical DAO works but it has some major improvements.

It consists of a community, a board of trustees and masternodes. Each plays a crucial role in our ecosystem and serves an appropriate function.

Paytomat community includes every individual who can help the network to accomplish its main goal of being the best system for processing cryptocurrency payments.

Paytomat masternodes are the full nodes of PTM blockchain. Their main responsibility is to vote on proposals that community pitches to them. However mastenodes also help operating the network by providing various services, such as storing and processing of transactions, merchants and franchise data.

Paytomat board of trustees represents the core teams of cryptocurrencies, which helps masternodes to choose the most interesting projects to vote on. The board also takes care of an escrow and reporting system, both of which are dedicated towards attracting proposals with higher expertise, intent, reputation and quality.

The most significant difference between existing DAOs and the Paytomat DAO, is a built-in escrow service. It helps to make sure that the pitchers who requested large sums of money deliver the work they promised. By working tightly with Dash, we found that this is a big issue and we would like to address it upfront. Moreover, the escrow will split the funds into calendar periods and allocate them after the pitchers accomplish an agreed part of their work.

The other major improvement to the DAO model is the concept of board of trustees. In Paytomat we believe decentralization is key, however, we can’t achieve the results we want without external help.

That’s why we are giving the rights to make the decisions related to cryptocurrency payments to people who originally created such systems — core teams of cryptocurrencies and the founders of blockchain projects. Those people have the biggest experience and knowledge of the industry and therefore we can trust them to make a direct impact on the future of payments in a completely transparent and decentralized way.

Here’s a few examples of proposals that the community might come up with:

establishing a Paytomat franchise in South Korea;

a strategic partnership with a payment broker or partner in Singapore;

creation of a custom hardware for accelerated transaction processing;

development of a module for augmented reality payments via contact lenses;

conference sponsorship for presenting Paytomat in front of major leaders in the e-commerce industry;

establishment of a relationship with a small Point of Sale provider;

a modification of agreement for Paytomat franchisees on Chinese market;

3 month customer acquisition action plan for the food truck industry.

As you can see, each proposal can benefit the network significantly, which creates a continuous and never ending improvement process of our product.

We scheduled a Testnet for both PTM blockchain and Paytomat DAO, for the end of this calendar year. Stay tuned!