Solana Blockchain Is Paving Way For Decentralized DAO Chess
In February 2021, @chess_dao was created as a result of an idea to move chess games to the blockchain using decentralized autonomous organizations (DAOs). The idea originated at an Ethereum Denver meeting, and members later played the first ever blockchain DAO chess game. Since then, the project has faded, but it represented a novel idea to merge the blockchain, DAOs, and chess.
What are DAOs?
DAOs are a new type of organizational structure that uses blockchain technology to govern a decentralized organization. DAOs are often referred to as a type of “crypto co-op”. In their purest form, DAOs are groups that form for a common purpose where DAO members can vote on proposals that govern the group. DAO members can hold equal votes, or they can hold disproportionate votes based on the number of DAO crypto tokens they own. Similar to most democratic functions, votes are tallied for proposals and the proposal passes if it has generated enough support by the DAO members.
DAOs can be used to invest in start-ups, manage crypto stablecoins, as well as manage decentralized finance (DeFi) projects. DAOs are essentially governing bodies that oversee the allocation of resources tied to the projects they are associated with and are also tasked with ensuring the long term success of the project they support.
One of the most famous DAOs is ConstitutionDAO, a group of thousands of crypto fans who raised more than $40 million to bid on a rare copy of the US Constitution that was being auctioned by Sotheby’s. ConstitutionDAO ended up losing the auction to a billionaire from Chicago, and ConstitutionDAO disbanded and returned most of the capital to its DAO members. ConstitutionDAO’s move sparked global headlines and interest in DAOs. Since then, a flurry of other creative DAOs have been born for various initiatives.
How Do Chess DAOs Work?
Chess DAOs can consist of two different DAOs playing each other in a game of chess. Each DAO can include a group of members who vote on the next chess move and strategy. The number of players could range from two to two million - there is really no limit. The collective outcome of each vote proposal is then used to move the chess piece. Chess DAOs function similar to a team sport in a way.
While the first-ever blockchain chess DAO was started on Ethereum, more users and gamers are migrating to lower-cost solutions like Solana and Polygon because Ethereum gas costs became cost prohibitive. DAOs that vote on-chain must spend transaction fees each time they cast a vote - on Ethereum this can become expensive quickly when each vote could cost $20 or more. On Ethereum, a 40-move chess game with 100 DAO participants on each side could result in transaction fees of $80,000 when gas fees are $20. The same game on the Solana would cost less than $2.
The growing Solana gaming ecosystem is attracting gamers from traditional online gaming. Blockchain games are executed entirely on-chain using cryptocurrency wallets. Chess blockchain gaming could operate the same way, where chess tournaments, moves, DAO votes, and more are all recorded the Solana blockchain. These gaming systems can operate in a decentralized structure, which eliminates the need for centralized gaming companies to host tournaments.
Blockchain and web3 are changing the way that organizations and games function. In the future we could see more initiatives such as @chess_dao popup and gain traction among the chess and crypto community.
