PhoenixDAO: Nurturing Rebirth of Digital Identity through Decentralization

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by Benjamin Godfrey · 4 min read
PhoenixDAO: Nurturing Rebirth of Digital Identity through Decentralization
Photo: Phoenix DAO / Facebook

PhoenixDAO aims to have five flagship products in the near term, with each product at different stages of incubation.

PhoenixDAO is a community-based decentralized platform that was established with the mantra of rebirthing digital identity in our world. The startup was created to cater to the needs of businesses and institutions while powering the next generation of DeFi apps.

Innovation rules the blockchain ecosystem and advances in DeFi, a unique offshoot of the emerging technology is growing by the day. With custom-made solutions to real-world challenges, projects like PhoenixDAO are leveling the playing field with their offerings.

The organization plans to operate primarily through two basic community-driven projects. A Decentralized Autonomous Organization (DAO) and dApps. While the former enables the community to take part in the governance and incubation of any proposed projects, the latter is the creative front through which innovations are bred and released to serve the crypto space.

PhoenixDAO has a lot of developmental works in progress but a highlight of its strides thus far is its solution development and the move to further develop a selection of the open-source Layer 1 protocols to be Layer 2 technologies. At the forefront of this is the Phoenix Identity powered by the ERC-1484 standard. This technology helps to create and link digital identities across different DeFi based dApps, apps, and APIs within the ecosystem.

Another functional protocol launched by the ecosystem is the Phoenix Authentication, a Blockchain-based 2-factor authentication tool to verify DeFi app logins and approve transactions using your digital identity. Additionally, the platform also boasts of Phoenix Payments, a smart contract-based solution to facilitate transactions without a third-party escrow service.

Projects in the Pipeline for PhoenixDAO

Per a press release shared with Coinspeaker, PhoenixDAO aims to have five (5) flagship products in the near term, with each product at different stages of incubation.

Staking dApp is the only product amongst the proposed five that has been launched. The decentralized application makes it possible for users to earn immediate interest on staked PHNX (up to 20% APY). The team at PhoenixDAO are working on the v2 version of the staking dApp with advanced features like liquidity farming. The updated version of the dApp will allow users to participate on the DAO platform, through the native PHNX token.

Following the company’s roadmap, an Events dApp is expected to be launched toward the end of the first quarter of 2021. This unique product is a decentralized Eventbrite-styled marketplace where users can go to sell or find listings for event tickets, both free and paid. Payments on the platform will be facilitated using the PHNX tokens. However, developers are encouraged to build free services for users to get acquainted with the entire ecosystem at no cost.

Towards the end of the year, a Non-fungible token (NFT) marketplace is set to go live, and the last two products according to the shared release will be determined by the community in due course.

The role of the aforementioned PHNX token is vital to the smooth functioning of the ecosystem. Besides its role in staking and the Event dApp marketplace, sales on all applications associated with PhoenixDAO will be priced in the platform’s digital asset. They can be purchased on Uniswap, Bittrex, and other partner exchanges listed by the startup.

Over time a newer version of all the PhoenixDAO products will be built to accommodate multi-chain and Layer 2 scaling solutions.

Earmarking the Uniqueness of the Digital Identity Offerings of PhoenixDAO

A major uniqueness of the platform is its self-sustaining model. While anyone anywhere will be able to bid for the funding of dApps to be launched on the ecosystem, the liquidity to back these projects will be obtained from the pool of funds generated by the system and from the generation of ticket sales and ads on the Events dApp after its launch and future updates. This must be preceded by the vote on the proposals by the $PHNX token holders.

Owners of dApps can charge users additional fees in $PHNX, $ETH, & $DAI, and 2% of the sales of these transactions go to the DAO smart contracts, additionally to support the market partners are already offering use cases such as token buybacks and more.

A partnership with the cryptocurrency payment app Numio has created many use cases for the $PHNX token. One of those use cases includes 10% of the profits generated from their identity management solution to buy $PHNX from the secondary markets (e.g. Uniswap), then stake the purchased $PHNX into the PhoenixDAO staking dApp.

The interest earned from staking will then be sent to a pool where the community members will decide on whether to burn the tokens, allocate them for community rewards, or something entirely different. These are some of the ways the PhoenixDAO’s ambitious innovations will be bankrolled.

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Benjamin Godfrey

Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.

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