The XRP Ledger (XRPL) has announced that XAO DAO, the first decentralized autonomous organization, will launch soon. The company’s shift from centralized authority to a community-driven model has given XRP holders unprecedented control over the network’s future expansion, funding, and policy direction.
The XAO DAO intends to empower the XRPL community by providing users direct control over resource allocation and decision-making, with a full launch scheduled for late summer. Unlike many DAOs that start with new governance tokens and airdrops, XAO DAO will utilize XRP exclusively for voting and governance purposes.
This approach aims to prevent the volatility and ambiguity that sometimes accompany new tokens while maintaining the focus on usefulness, transparency, and genuine community interaction.
The Operation Of XAO DAO
Any XRP holder can now vote on projects, submit ideas, and influence the XRPL’s direction thanks to this change. Voting power during specified snapshot periods is up to XRP holdings. This cap is in place to prevent large holders (sometimes referred to as “whales”) from controlling the results. The modification ensures a more equitable and democratic process that considers the interests of the broader community.
XAO DAO will operate on a cyclical model. This means the community joins, proposals go live, votes are cast, grants are distributed, and projects are built. This creates a self-sustaining “governance flywheel,” designed to keep the ecosystem evolving without centralized control.
XAO DAO’s primary goal is to spur innovation on XRPL. The DAO will oversee a grant program to assist various contributors. These include early-stage XRPL companies, validators and node operators, as well as developers creating decentralized applications (dApps).
The funding structure ensures that resources are allocated by consensus, rather than driven by corporate interests. This is by providing a defined, open mechanism for the community to choose which activities receive support.
As the waitlist for XAO DAO opens and the community prepares for launch, XRP holders and builders now have a direct seat at the table. The XRP Ledger is no longer just a payment protocol—it’s an evolving ecosystem shaped by those who use and believe in it.
READ MORE: Spark Crypto Price Crashes After Airdrop as Bitcoin Pepe Surges
