Staking-as-a-Service startup Stake Capital plans to DAO-ify its business

Staking-as-a-Service provider Stake Capital announced the startup would transition to a revenue-sharing Decentralized Autonomous Organization (DAO). The new business model enables anyone to claim a portion of Stake Capital’s income, collected in the form of staking fees, by holding the newly minted Stake Capital Token (SCT). SCT holders will eventually be granted pro-rata voting rights over the digital organization to influence its future direction. The token-friendly model also includes the launch of a second token called LTtokens (Liquid Tokens). These ERC-20 tokens act as deposit slips pegged 1:1 to the amount of collateral a user stakes, unlocking the potential for holders to exchange staked assets on “secondary markets as derivatives.”

Why it matters:

• DAOs are continuing to surge in relevance, a remarkable rise from despair following the collapse of The DAO. The infiltration of DAOs into staking providers comes at a time when staking services are gobbling up the delegated tokens and voting rights for Proof-of-Stake (PoS) networks. Stake Capital’s transition could spark a movement among Staking-as-a-Service companies to decentralized their efforts even further.
• The opportunity cost of staking capital is the inability to use those funds for other income-producing interests, such as lending it on Compound. The introduction of LTokens enables users to keep their stake while realizing alternative gains through their corresponding LTokens if (and a big if) a market develops for these new assets.