ShapeShift comes under the control of DAO under the control of FOX token holders

ShapeShift cryptocurrency exchange ceases to operate as an official company and comes under the control of a Decentralized Autonomous Organization (DAO) controlled by FOX token holders.

ShapeShift, founded in 2014 by Erik Voorhees, has announced that it will soon be discontinuing its business as an official company. ShapeShift currently employs 65 people, but in 4-12 months it will have no employees, bank accounts, and a CEO, Voorhees said.

“This is definitely radical,” Voorhees said. “A year ago I thought that such an initiative was in the realm of fantasy. But now I know how this tool is created and I have seen how these communities are built around a token rather than a capital structure. The fact that ShapeShift is indeed closing its legal entity makes us stand out from the crowd. ”

To attract more people to the new version of ShapeShift, the exchange will distribute 340 million FOX tokens for free to all former users of the exchange, of which there are about 900,000, as well as to the owners of 120,000 addresses interacting with major DeFi protocols. The FOX is now worth around $ 0.92 after hitting an all-time high of $ 1.65 in April.

The total supply of tokens is limited to 1,000,001,337 FOX without inflation. Of these, 34% are distributed among the project community and other cryptocurrency communities, 32% – among ShapeShift employees, 24% – ShapeShift DAO, 7.5% – for a fund that will manage everything that cannot be decentralized at once, and 1.3% – for companies for use as it closes.

About 10 million FOX tokens are already in circulation. First of all, the free distribution of tokens will affect everyone who has used ShapeShift at least once. The exchange will also be hosting a small giveaway to users of various DeFi protocols, including Gitcoin, Uniswap, Yearn, and a few others. In addition, the giveaway will affect Thorchain users.

Voorhees explained that FOXs are not required to use ShapeShift, but holders can generate income. FOX holders will be able to participate in liquidity mining – ShapeShift will reward users who become liquidity providers to key Uniswap pools, helping to increase the depth of liquidity for the FOX token.

Voorhees is not worried about the end of the era of the exchange as an official company. He said he hoped to get rid of all the bureaucracy he was burdened with. The move could improve relationships with users and developers, he said.

“The most significant part of the company is its people. I hope this will improve our relationship. Nothing will change much for me – I’m going to stay part of ShapeShift and be one of its many leaders. ”

As a reminder, at the beginning of the year, ShapeShift announced the integration of Uniswap, Balancer, Curve, Bancor, Kyber, 0x, and mStable DeFi applications. This allowed ShapeShift clients to avoid the KYC procedure. In April, cryptocurrency exchange researchers said that decentralized insurance protocols could eliminate the risks that DeFi projects face.

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