The crypto world is buzzing. XDAO, an emerging Telegram-first platform launched on the community-run TON blockchain, is shutting down $DAO farming. August 11th is the deadline. The question everyone is asking is this: are they crazy, or crazy smart?

End of Farming: A Necessary Evil?

Farming, staking – it’s the serum that fuels every early-stage crypto project, correct? It rewards early adopters, it more efficiently allocates tokens, and ideally, it fosters a community. Let's be honest, how much of that community is actually invested in the project's long-term success, and how much is just there for the yield?

XDAO's move is counterintuitive. They’re gambling that not having to farm will be a long-term advantage for them and the project. It's like ripping off the band-aid. The first shock of losing those enticing APYs is real. But what if that pain is not a debilitating threat, but rather evidence of positive development? Think of it like this: a child learning to ride a bike needs training wheels at first, but eventually, they have to come off to truly learn how to balance. In our analogy, farming are the training wheels of crypto.

Farming rewards often lead to inflation, diluting the value of the token over time. It warps the sector by attracting mercenary capital – the people who are only in it for the short-term gains. Once the spoils run out, they’ll be off to the next shiny object, abandoning the project in a lurch. This is not sustainable. It's crypto Darwinism at its finest.

XDAO is essentially saying, "We want investors who believe in our vision, not just our APY." They are convinced that the utility of the $DAO token will increase its long term value. This token not only powers DAOs on the platform, but creates a strong utility driver for future growth.

The TONXDAO app launch is key here. XDAO has a huge focus on ease of use, bringing all of the DAO functionalities you could need into Telegram itself. This is huge. Think of the average crypto user. Are they ready to dive into more complex DeFi protocols and wallets? Probably not. XDAO is shooting for the DAO creation to the masses, like composing a text message.

Telegram DAOs: Simplicity or Over-Simplification?

So is this simplicity a strength, or a weakness. Are they bringing DAOs to the lowest common denominator to the point that they lose their essential utility? After all, is it really a DAO if it literally only takes a few clicks from a Telegram chat? Others suggest that decentralization can’t be “real” when all it takes to use the technology is a friendly interface. It takes more than just a technical knowledge of blockchain technology, but a keen understanding of governance principles. Will XDAO’s approach attract the desirable type of users? Or will it just lead to a wave of performative DAOs with no substance to them.

  • Pros

    • Accessibility
    • Simplified UX.
    • Leveraging Telegram's Massive User Base

  • Cons

    • Potential Security Concerns.
    • Reliance on Telegram.
    • Limited Functionality (potentially).

It’s making me feel like it’s the early days of the internet again. Except this time, everyone was racing to create the next big portal, the one-stop shop for everything you’d ever want to do online. Yet allowing for that specialization arguably made the internet more valuable as a whole, decentralizing attention and allowing for unique voices to emerge. As XDAO announced its program, was it attempting to be a portal, when it should be looking to become a building block.

XDAO is betting on the power of scarcity to increase the value of the $DAO token. With a limit of 100,000 active DAOs and an ever-growing activation cost, they’re inducing a supply crunch. The logic here is that with the grassroots demand for DAOs increasing, the $DAO token will appreciate accordingly in value.

Tokenomics: Scarcity Breed Value?

Here's the gamble: Will the demand for DAOs on the XDAO platform be strong enough to offset the loss of farming rewards? Is the utility of the $DAO token sufficient to attract and keep investors?

This is really where the rubber meets the road though. XDAO is sure that their product is simply good enough to succeed on its own merits. They are making a big commitment by passing up farming bonuses. That’s a crazy thing to do, and it’s the kind of crazy that might pay off in a huge way. If they’re successful, they will have built an amazing ecosystem that has true utility and long-lasting value.

If they succeed, they will have, by design, excluded their early stage investors. They endanger themselves by ceding the advantage to other competitors who are still providing farming rewards. The crypto space is littered with failed projects. They sold the moon, but all they brought back was flim-flam. XDAO needs to prove that it's different.

Only time will tell if XDAO’s bold gamble proves to be a stroke of genius or a disastrous mistake. One thing is for sure: it's a move that deserves our attention, and a move that could reshape the future of DAOs. We’ll be watching every step of the way, and you should be as well.

Ultimately, only time will tell if XDAO's bold move is a genius strategy or a fatal error. But one thing is for sure: it's a move that deserves our attention, and a move that could reshape the future of DAOs. I'm watching closely, and you should be too.