Build-on-Bitcoin Trend Imports Another Concept from Ethereum: the DAO

As a seasoned crypto investor with roots deeply entrenched in the blockchain landscape since the early days of Bitcoin, I must admit that the emergence of RootstockCollective as the first DAO on Bitcoin layer-2 Rootstock has left me both exhilarated and intrigued. The trend of Ethereum-like concepts finding their way to the world’s oldest blockchain is a testament to the evolving nature of this fascinating industry.Last year, NFTs were introduced onto the Bitcoin platform. Shortly after, fungible tokens joined Ethereum, the original and most extensive blockchain, accompanied by numerous layer-2 networks and staking initiatives as well.

A new type of organization called a Decentralized Autonomous Organization (DAO) has recently emerged on the Bitcoin layer 2 network, RSK. This development continues the pattern of innovations typically linked with Ethereum being adopted by the longest-standing blockchain.

RootstockCollective, the pioneering Decentralized Autonomous Organization (DAO) operating within the Bitcoin layer 2, has been created to motivate developers and users of Rootstock, as per an announcement sent to CoinDesk and received on Thursday.

DAOs, or Decentralized Autonomous Organizations, are virtual organizations built on blockchain technology. Instead of being controlled by a central authority, decisions within these organizations are made by the holders of its underlying tokens. They operate on networks such as Ethereum and Solana, but due to limitations in programming, they have not been incorporated into Bitcoin yet.

Through the process of staking, holders of the Rootstock token RIF can acquire voting privileges within the RootstockCollective DAO. Staking essentially involves keeping one’s tokens securely stored for taking part in the validation procedures on a blockchain network, and it often results in additional tokens being awarded as compensation.