According to CoinDesk, RootstockCollective has been introduced as the first decentralized autonomous organization (DAO) on Bitcoin layer-2 Rootstock. This new DAO will enable holders of the Rootstock token RIF to earn voting rights by staking their tokens. The launch signifies a continuation of concepts typically associated with Ethereum making their way to Bitcoin, the world's oldest blockchain.
DAOs are blockchain-based organizations where decisions are made by token holders rather than a central authority. While DAOs are prevalent on networks like Ethereum and Solana, they have been largely absent from Bitcoin due to its programmability constraints. Rootstock, a layer-2 network, aims to enhance Bitcoin's utility and is compatible with Ethereum's EVM programming standard for smart contracts. This compatibility allows applications originally built on Ethereum or related chains to be easily transferred to Rootstock.
The trend of building on Bitcoin gained traction in early 2023 with the Ordinals protocol, which introduced a Bitcoin version of non-fungible tokens (NFTs). This trend has continued with the introduction of memecoins and other fungible tokens on the Runes protocol, and the BitVM computing paradigm, which facilitates smart contracts on Bitcoin. The RootstockCollective DAO aims to encourage builders and users of Rootstock by allowing RIF token holders to stake their tokens and earn voting rights. Staking involves users locking away their tokens to participate in the blockchain's verification process and receiving additional tokens as a reward.
