Shiba Inu’s First DAO Election Aims to Reshape SHIB’s Future

• Shiba Inu’s first DAO election could shift control from devs to community whales.
• The interim president will manage the treasury, councils, and the Shiba Inu strategic plan.
• RSI at 48.50 signals mild bearish momentum, while MACD near zero reflects market indecision.

Shiba Inu is preparing for its first interim presidential election as part of a shift toward decentralized governance. The election will introduce a token-weighted voting process where each SHIB token represents one vote. This structure effectively gives the largest holders, or whales, significant influence over the outcome. Project lead Shytoshi Kusama has expressed that a whale candidate would have a strong vested interest in the ecosystem’s success.

The issue has raised concerns because power lies with a small number of big holders. The system in place may not have as much weight in terms of voting for smaller members of the community. The election process will be done in three stages, starting with the nomination stage. The top ten nominees will advance to a debate stage, followed by a vote to select three finalists. There will be a final vote where the core team keeps veto power over the candidates.

Responsibilities of the Interim President

The temporary president will be in charge of the execution of the Constitution of the Hounds and the creation of the DAO congress and councils. The major responsibilities will be taking care of the ecosystem’s treasury and providing direction for infrastructural development. The role also involves implementing the strategic roadmap outlined in the Shib Paper. These roles will result in operational control being progressively moved away from core developers to a community-led system.

This governance change comes as Shiba Inu enters its fifth “Shib Year.” The timing coincides with a period of significant market volatility for SHIB. The token has declined by nearly 44% since the beginning of the year. Leadership changes are being positioned as a step toward increasing long-term network stability and participation.

The Technical and Historical Context

At press time, Shiba Inu recorded a 2.21% gain over the past 24 hours, with the price reaching $0.00001294. Signs of investor activity were evident as trading volume increased by 116.18% to 321.4 million. It increased the market capitalization to $7.62 billion, which is backed up by a circulating supply of 589.24 trillion SHIB.

The Relative Strength Index (RSI) is positioned at 48.50, suggesting a mild bearish momentum, while the MACD (Moving Average Convergence Divergence) continues to hover around 0, indicating indecisiveness in momentum. After a significant spike earlier in the year, SHIB has seen a series of fluctuating price movements, with recent action showing consolidation. Investors are likely awaiting a clearer signal, as the market remains uncertain, and momentum indicators signal a balanced risk for potential traders.

In the past, other cryptocurrency projects that purported to be decentralized through governance mechanisms, such as MakerDAO and Uniswap, experienced heightened network activity after being decentralized. Such examples suggest that effective governance design can help provide long-term structural stability of tokens. Nevertheless, the high amount of circulating supply of SHIB poses a problem in reaching high prices without additional tokenomics changes.

Related: Shiba Inu Price Forecast: Is SHIB Ready for $0.000045? 

It is the first experiment of its kind, a major meme token to be governed by an election. Should it be successful, this may shift SHIB away to be a latticework in which it was conceived as a speculative asset. This transition could bring the accumulation of more whales and contribute to more sustainable demand increases in the market.

The post Shiba Inu’s First DAO Election Aims to Reshape SHIB’s Future appeared first on Cryptotale.