VPN (Virtual Private Networking) services are becoming increasingly popular. They have many use cases, ranging from unblocking streaming service content to avoiding unwanted data collection to bypassing internet throttling and more. Their usefulness explains why 68 percent of all adult internet users subscribe to some kind of free or paid VPN service, according to security.org.
A project called SpiderDAO combines the utility of VPN of services with a new kind of decentralized business model that only blockchain technology can facilitate. In traditional companies, executive officers make all the big financial and managerial decisions. In other words, they determine how much everyone gets paid and how much money goes back into the company.
Since SpiderDAO is a DAO (Decentralized Autonomous Organization), it is organized in a totally different way. Cryptographically secure algorithms ensure security and transparency, while SpiderDAO’s stakeholders vote to decide how the company’s resources are shared out.
Learning from the mistakes of other DAOs
The very first DAO to hit the market came out in 2016. Named simply “The DAO,” its main purpose was to act as a venture capital fund for the cryptocurrency space. Though The DAO managed to raise the equivalent of $120 million in cryptos and became the most successful crowdfunding campaigns in history, it collapsed shortly after its launch in the aftermath of a devastating hack.
Aside from security concerns, another problem with DAOs is the risk of plutocracy. Big-money investors can easily acquire too much influence within the DAO, and bad or corrupt decision making can come as a result. According to data from crypto analytics firm CoinMetrics, three of the most popular DAOs– Tezos, Maker and Decred– are all showing signs that decision making power is concentrated in the hands of just a few stakeholders.
Here’s how SpiderDAO addresses both of these concerns:
Guarding against hacks. As a safeguard against hacks, all SpiderDAO voters must not only purchase a stake of SPDR token but also buy a special SpiderVPN router. This router serves as the voter’s “ticket,” enabling him or her to cast votes.
Each voter can only buy one ticket. Specialized software monitors all the SpiderDAO routers on the network to make sure that nobody tries to orchestrate a scam by purchasing multiple ones.
Limiting the power of whales. To prevent big investors from having too much influence, SpiderDAO’s creators have implemented a unique governance system called Polkadot.
In the Polkadot system, the size of your stake is one of a variety of factors that can influence one’s voting power. For example, anyone who votes must lock up their tokens until the proposal is enacted. If you want to multiply the influence of your vote, you can choose to lock up your tokens for a longer period of time. This allows investors with small stakes and strong opinions to have their say.
Providing multiple ways to earn passive income
Anyone who buys a stake of SpiderDAO will be able to not only earn passive income, but also enjoy free VPN service. All the stake money will go into a pool of capital, which is then used to provide loans and other financial services. The profits from fees will get sent to the stakeholders, who will earn interest on whatever they put down. The more stakeholders invest, the more they’ll earn. SpiderVPN has dubbed this concept “Liquidity as Utility,” or LAU.
SpiderVPN participants will also be able to earn side income by monetizing their spare bandwidth. Contributors will gain the opportunity to use their extra bandwidth from their home networks to power the dVPN system. Currently, SpiderVPN is operating under a centralized model. However, SpiderVPN has joined forces with the decentralized VPN provider Sentinel to shift toward a decentralized structure. Once the transition is complete, anyone who lends their bandwidth to the dVPN will be able to get paid in $SENT for their contributions.
The side benefit of earning passive income is significant. Instead of paying for VPN service, all the SpiderDAO stakeholders will be getting paid for providing liquidity to SpiderDAO and/or contributing bandwidth to the decentralized VPN network. As a side bonus, all LAU providers that contribute more than a certain minimum threshold of liquidity will be able to enjoy free complimentary VPN services.
Other similar blockchain projects
Since SpiderDAO lets investors earn passive income, it is in some ways similar to DeFi projects that started a trend in 2020. One reason that projects like Compound, Maker and Save have become popular is because they all offer yield farming. DeFi projects that support yield farming give their stakeholders the ability to earn interest as a reward for contributing liquidity.
SpiderDAO is also similar to Brave Browser. Brave Browser is a privacy-focused web browser that bills itself as “three times faster than Google Chrome.” Brave Browser users can opt in to see officially approved ads and earn BAT (Basic Attention Token) as a reward. Brave and SpiderDAO both solve issues related to privacy while providing a means for ecosystem participants to earn income as they use the web.
Conclusion
SpiderVPN could very well shake up the VPN industry once it transitions to a decentralized model and goes live with SpiderDAO. If the system lives up to its potential, it could change the way we think about not only VPNs but also all kinds of other kinds of similar internet-based subscription services.
Social Links
Medium: http://medium.com/@spiderdao
Telegram: https://t.me/SpiderDAO
Twitter: https://twitter.com/spiderdao
Further Details
Company Name – SpiderDAO
Contact: Nathan Varty
Support E-mail: [email protected]
Website: https://spiderdao.io/
Address: C/o Silverside Management Ltd, of Whitehall Chambers, Grand Cayman, Cayman Islands
(Syndicated press content is neither written, edited or endorsed by ED Times)
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