ShapeShift started transition to an open source DAO

Key facts:
  • 75% of your supply will be in the hands of employees, shareholders and users.

  • With the decentralization of the platform there will be no Know Your Customer (KYC) rules.

Cryptocurrency exchange ShapeShift began this Wednesday, September 1, to dissolve its corporate structure to evolve into a decentralized platform, where governance will be in the hands of the community. As part of that process, the code for ShapeShift version 2 will be taken to open source in the coming months.

ShapeShift founder Erik Voorhees made theannouncement Aug. 31 on Twitter. “The dawn of an open source ShapeShift begins tomorrow. An increasingly immutable, multi-chain, self-custodial cryptocurrency platform for all people to use and no one person to control.”

Already in early January this year, Voorhees had announced that the company would phase out its trading activity to transition to a fully decentralized organization, a fact reported by CryptoNews. This conversion to a decentralized autonomous organization (DAO) is accompanied by an elimination of Know Your Customer (KYC) procedures, which the firm applies on the centralized exchange.

As an initial step in opening up the ShapeShift code, the version 2 repository is available to developers on Github. Engineering workstream lead for ShapeShift DAO, Josh Foreman, noted that it’s “a big step in our efforts to open source and engage the community in iterating the first complete, multi-chain, community-built interface.”

ShapeShift is inviting developers interested in reviewing and contributing code to download it from the repository. It also recommends attending bi-weekly community calls on the firm’s Discord channel on the first and third Wednesday of every month.

There they can watch demos, discuss enhancements, or join discussions on product engineering topics. “In the future, the engineers currently employed at ShapeShift will shift their focus to include assisting community developers, answering questions, and building an open source culture,” the firm notes.

Governance through the FOX token

In an interview with Blockchain.com’s Jason Carsh and Nicolas Cary, Eric Voorhees said Thursday, the strategy for ShapeShift’s evolution is now in the hands of the holders of the FOX token, its native token. Those who until Wednesday

were directors, employees and shareholders of ShapeShift will receive 32% of the supply, about 320 million tokens, Voorhees said. The total FOX supply is 1,000,001 million.

ShapeShift started transition to an open source DAO ShapeShift started transition to an open source DAO Distribution of FOX tokens in the ShapeShift DAO. Source: ShapeShift.

About 242 million tokens, or 24%, of the supply will go to the ShapeShift DAO treasury, while 340 million tokens (34%) will be distributed to ShapeShift customers, via airdrop.

The ShapeShift Foundation received 7.5% of the supply, about 75 million tokens, while about 13 million tokens (1.3%) are retained by ShapeShift for the duration of the decentralization process.