$CHEESE
Cat DAO will gradually become the biggest incubator on Optimism while the holders of $CHEESE will the beneficiaries of the thriving Optimism Layer2 ecosystem.
The Optimism layer2
Vitalik Buterin says Layer 2s are the future of Ethereum Scaling.
Ethereum’s woesEthereum is still the undisputed GOAT regarding usage rates, decentralized applications, and developer activity. Unfortunately, it’s also a victim of it’s own success, with said activity rendering it virtually unusable for retail users, as gas fees can exceed $50 for a simple transaction. None of that is news, and Ethereum has been working on its Ethereum 2 update for years. It’s supposed to make the blockchain more scalable, secure, and sustainable and early phases of the Eth2 roadmap are to start soon.
However, Vitalik Buterin somewhat dampened hopes that the base layer of Ethereum would see a quick upgrade, saying that scalability of the so-called Beacon Chain would only come in the last major phase of Eth2, which is still years away. As Ethereum prepares to switch to proof-of-stake, swapping it for its electricity-intensive proof-of-work consensus mechanism, Eth2 is also going to add more blockchains to its ecosystem to become more scalable. The current Ethereum blockchain will become the Beacon Chain and will be one of 64 chains, as Ethereum implements sharding, a scaling solution native to Ethereum.
Yet, users and developers are calling for more scalability now, and “The Merge,” as the switch to sharding is called, will be a multi-year process. Aware of Ethereum’s shortcomings, Buterin addressed these issues in Shanghai, stating that there was an urgent need for scaling solutions and that layer two blockchains would be the only feasible way for now.
How layer 2’s can help Ethereum scaleLayer two blockchains are blockchains that are built on top of Ethereum. Several have already been launched, and solutions like Polygon and Arbitrum are quite popular among users and developers alike. Other promising candidates include Optimism, Loopring, ZKSync, and Hermez. Layer two blockchains provide a significant increase in scalability for Ethereum, as they handle transactions outside the main chain but post transactions on Ethereum. For users, this means reduced gas fees and a much smoother user experience.
Buterin underscored one particular layer two scaling solution, saying that ZK-rollups would be Ethereum’s go-to strategy for the near and mid-term future. ZK-rollups run computation off-chain and submit validity proof to the main chain, providing a complex but highly secure solution. Optimistic rollups, their main competitor, take a week for withdrawals, which does not make for a great user experience. Buterin also said that enterprise applications could use ZK-rollups when the technology was ready, making private blockchains unnecessary.
Particularly non-financial applications will be looking to switch to or launch on rollups. Buterin suggested that NFTs, Ethereum Name Service (ENS), and decentralized autonomous organizations (DAOs) would stand to gain the most from moving to rollups. With its competitors trying to chip away at Ethereum’s lead in users and decentralized applications, the market leader is well-advised on resolving its scaling woes as soon as possible.
As a result, the layer 2 ecosystem will definitely grow and become the best solution to ETH. What’s more, in 2022, the layer2 ecosystem will become more people’s choices.
Cat DAO
As stated above, layer2 will eventually boom, but as an average investor, when faced with a sea of new projects, there is a high risk resulting in a loss of money. So what can be done to ensure that an average investor can capture the value of the booming Layer2 ecosystem?
It is by following someone who is familiar with Optimism and investing in early-stage projects to reap the dividends whenever possible.
But it's difficult for an individual to invest in many projects while the person does not have the resources to negotiate with project owners and developers. Thus, Cat DAO was born.
Cat DAO is a fair launch, fully governed by the people, all capital from Cat DAO Treasury will be employed to build and benefit the Optimism ecosystem, such as investing, incubating early-stage projects, and harvesting dividends from projects through the name of Cat DAO.
As the Optimism ecosystem thrives, participating in numerous early-stage projects will bring huge revenue to Cat DAO (think about the benefits project traderjoe brought to early Avax users). Meanwhile, Cat DAO will obtain a large number of tokens from Optimism projects and give back all the revenue to its members. At present, when we recognize whether a person is a DAO member, we will check whether the person owns a membership NFT of Cat DAO. Members’ voting power will be determined by identity verified by NFT + $CHEESE lock volume (tentative) to maintain a good decision-making process for Cat DAO.
$CHEESE
$CHEESE is Cat DAO's native governance token, so how does $CHEESE capture value?
Cat DAO acts as an incubator will assist in fundraising for projects (remember our IGO?). Early shares for projects can only be purchased by holding $CHEESE.
$CHEESE is an important voting medium for Cat DAO. In order to prevent voters from doing evil, CAT DAO needs DAO members to stake $CHEESE. Staking $CHEESE itself is essential to Cat DAO and therefore revenue will be generated.
Cat DAO invests in a large number of projects in the Optimism ecosystem, and the tokens obtained are essentially owned by $CHEESE holders, so the proceeds from the sale will go to the Treasury which is owned proportionally by everyone.
Most importantly, as long as Cat DAO incubates enough projects, holders of membership NFT and $CHEESE are like aristocrats on the Optimism ecosystem and have many privileges. For example, early projects will consider Cat DAO NFT and $CHEESE holders to be OG of Optimism and will even make a specific airdrop.
In conclusion, Cat DAO, as a fair launch DAO with only 4.6% tokens held by the team, will begin to incubate more and more early-stage projects on the Optimism ecosystem and contribute all revenue to the DAO, so let's work together to incubate the Optimism ecosystem and enjoy the dividends that arrive when the ecosystem thrives!
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