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Syncra: A Modern Approach to DAO Building. Podcast Key Takeaways. 

Mar 1, 2024

Decentralized autonomous organizations (DAOs) are the subject of the latest Aleph Zero Podcast Episode as we meet up with Syncra, who will give us a crash course on what DAOs are, their role in decentralizing Web3, and how Syncra aims to leverage Aleph Zero’s privacy-enhancing features to permit anonymous voting. 

Listen to the full episode on the platform of your choice

TL;DR

Too Long; Didn’t Read

  • Syncra is building a no-code solution for DAO building on the Aleph Zero network. 
  • They are a member of the Ecosystem Funding Program. 
  • DAOs are online communities that leverage the immutable and privacy-preserving capabilities of blockchain technology with smart contracts to allow for new forms of democracy to flourish. 
  • Most commonly, token holders are eligible to vote on propositions, with voting power being proportional to their holding. 
  • Accepted proposals trigger actions defined within the proposal, facilitated by smart contracts.
  • Syncra offers a problem-free solution for building DAOs, reducing the need for extensive resources allowing users to construct a DAO in minutes with full ownership and modular features.
  • Aleph Zero’s unique combination of speed, performance, and privacy-enhancing features have been leveraged by Syncra to allow for the creation of transparent systems that preserve the voters’ identity. 
  • As smart contract vulnerabilities pose the greatest threat to protocol safety, the project is going to great lengths to ensure the security of the smart contracts that will be the backbone of the system. 
  • One of the challenges facing DAOs is the need for regulatory clarity from governing bodies. Steps are being made in this direction as certain states in the U.S.A., as well as entire countries such as Estonia, have been making strides in this area. 

The Ins and Outs of DAOs

Taking us through the world of DAOs is Przemek, the CEO of Syncra, affectionately known as Kodziak. He began by explaining the origins of the project, which was initiated during a hackathon in Berlin, and resulted in them winning first prize and joining the Aleph Zero Ecosystem. Syncra was conceived as a no-code solution for building DAOs that, once finished, will allow users to set up their very own online community in a matter of minutes. 

Kodziak sees these forms of communities as the next evolution of online life that will permit new kinds of interactions to be created with transparent and private voting. He specifies two types of these systems during the podcast, namely: 

  • Investment DAOs, where investors collectively make decisions, based on shared interests.
  • Participation DAOs : Typically token-based, where token holders have voting power proportional to their holdings.

These organizations are safeguarded by the immutable and transparent nature of blockchain technology that registers every cast vote on the blockchain, helping to prevent voter fraud and manipulation. Additionally, Syncra aims to leverage Aleph Zero’s privacy-preserving features to ensure the anonymity of voters. Once a proposal is accepted by DAO members, its execution is ensured by smart contracts. 

Syncra’s Dedication to Building a Friendly User Experience

As mentioned by Kodziak, Syncra aims to offer a simple way for users to create their own DAOs and even facilitate proposals within the platform. Offering an easy-to-use experience has been at the forefront of the team’s efforts as they believe that for Web3 to move forward, radical steps should be conducted to offer modern, user-friendly interfaces that will make it easier to transition We2 users to Web3. 

Users can create, vote on, and customize proposals within Syncra while also allowing for the integration of features such as subdomains and visibility options. Worth mentioning is that the team is researching subscription-based pricing for their services, prioritizing user experience and affordability. Also in the works is a collaboration with fellow Aleph Zero Ecosystem Funding Member Kintsu to provide liquid staking to the project. 

DAOs and Regulatory Compliance 

One of the greatest challenges facing most Web3 endeavors is the possibility of smart contract vulnerabilities. To ensure the safety of the project and users, Syncra has been investing time and effort into auditing the codebase to prevent any bugs from seeping in. The team has also been involved in the development of governance smart contract standards akin to OpenZeppelin. 

The legal framework governing DAOs is also something that needs to undergo change as currently, DAOs are not regulated and to fulfill their potential will need clear signals from decision-makers on the way forward. For example, Kodziak mentions how many Web3 companies operating as DAOs are put in a grey zone tax-wise which makes it difficult for them to flourish. However there is light in the tunnel as Estonia and select U.S states have been pioneering regulations that are friendly towards these new online communities. 

Another challenge facing Web3 organizations is balancing the privacy-preserving capabilities of the technology with accountability and compliance. These worries stem from the technology’s ability to make prosecuting and identifying bad actors difficult. Fortunately, Aleph Zero’s privacy-enhancing solutions that Syncra employs have been designed from the get-go with compliance in mind, ensuring the projects building as part of the Aleph Zero Ecosystem are always in line with Web3 regulations. 

To learn more about Syncra, Aleph Zero, and the privacy-preserving properties that underpin the project, be sure to check out both the Aleph Zero Podcast and Blog.