Budget? Voting? How DAO works in JanuszCoin

 

To better understand what the budget in JanuszCoin is, let’s first look at where the budget comes from in most democratic countries.

 

In order for the state to have funds for the further development of infrastructure, education, defense, security and medical care for citizens, the government adopts a budget every year. In addition to the most necessary things, millions if not billions of dollars will be spent, among others on subsidizing unprofitable industries to artificially maintain jobs, on social programs or payments for the army of officials. Where did the money come from? Of course, from the taxpayer’s pocket … It is not difficult to say that this system is far from ideal. The deputies deciding on the budget, having it at their disposal, apart from making the right decisions, take into account what will be best for themselves and will ensure their next election success. In other words, they buy their votes for themselves, either through a social program or through salary increases for a specific group of public sector employees. The good of the state as an enterprise, i.e. the good of the economy or the good of citizens in general, often lies in the background. The state budget consists of what the government takes away from citizens in taxes, plus how much it will borrow.

 

Where does the budget in JanuszCoin come from?

If you know something about cryptocurrencies, you know that they are “mined” and therefore new units are generated. Simply put, it could be said that the newly generated coins constitute the budget of a given project, which in the traditional model, such as bitcoin, goes 100% to miners. However, there is no room for making decisions here, all the cash is really just for strengthening the network.

In JanuszCoin newly generated Janusz  do not go only to the validators of newly generated blocks. One-third of Janusz goes to a special pool, which is the budget for the further development of the project . Each month its shape is chosen by the community. On the one hand, each user can write his own budget proposal, in which he will put information on how he will contribute to the development of the project and what remuneration he expects in return. On the other hand, the owners of existing JanuszCoins decide with their votes which proposals will be accepted and paid for by the blockchain. Each user with at least 5,000 Janus can vote on the budget. For this purpose, it is necessary to have the so-called a masternode that gives voting rights. Instructions on how to set up a masternode can be found in our tutorials section. In our  economy, we also call masternodes as stools.

DAO, i.e. the Decentralized Autonomous Organization

Decentralized Autonomous Organization – this is what is hidden under the mysterious slogan DAO, well known in the blockchain industry. JanuszCoin’s budget management mechanism is based on the DAO structure. But how is DAO different from traditional organizations, and what are its benefits? First, the DAO does not have a central headquarters or centralized management and therefore is not registered in any jurisdiction. Users from all over the world can actively decide or apply for budget allocations and do not need anyone’s permission to do so. Comparing this system to the aforementioned democracy in the state apparatus, the holders of stools, by casting their votes for individual proposals, do not do it “as the leader ordered”. Nobody has to worry about their stool, because as long as they have the coins they will stay on the stool. Everyone votes for the proposals they think will bring the most value to the organization. If they do, the greater the value of each stool will be.

 

What does the budget give us?

First of all, projects that do not have a continuous stream of money allocated to development are in a much more difficult situation. Often their development ends with the last money spent from the ICO, or coin presale. At JanuszCoin, we reversed this pattern. We did not raise money at the beginning of the project, we want it to develop organically, and as its popularity grows, we hope that the value of Janusz will increase. The greater the value of coins means a greater budget for development, and a larger budget should translate into a further increase in popularity … The budget gives a financial incentive not only to users who want to mine cryptocurrency and thus strengthen the network. The budget allows you to reward users for activities in the spheres of building a wider infrastructure for the project, applications, plugins, payment gateways, etc. It allows stores that decide to accept Janusz to apply for subsidies. It even allows you to go out with advertising and promotion on the street if the community decides it’s a good idea. Finally, the budget can also be partially donated to charity. If you have any interesting idea for Janusz’s promotion and would like to win some coins, write to our forum and check what people think about it.

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