The topic of whales, large cryptocurrency holders, continues to be an issue for new investors in blockchain and cryptocurrency technologies.
Only a small number of users tend to hold a disproportionate amount of funds in most blockchain networks.
This creates a situation where ordinary users are affected by their influence when it comes to governance, technical details, and even price considerations.
SpiderDAO is a decentralized VPN service provider and blockchain platform focused on building a whale-resistant blockchain network as well as bringing online privacy to the end-user.
As a Decentralized Autonomous Organization (DAO), it implements a multi-layered governance setup based on hardware and software tools on top of a fair and resilient hardware-based DAO built on Polkadot.
The SpiderDAO Dashboard, SPDR Token, and SpiderConnect Router come together to create a robust, scalable, and community-driven ecosystem that is whale resistant. Finance Magnates sat down with CEO Nathan Varty for a chat.
Hi Nathan, thank you for sitting down with us. Online privacy is obviously a big deal these days. Where do you think the space is going in this sense?
Every day we hear about another sophisticated hack or scam that has breached our data at some level, it seems to be part of our everyday news. We feel that this is only going to get worse as time goes on.
We believe that the future of the internet depends on decentralised companies’ innovations and collaborations and these will be a huge part of the future of the Web 3.0.
These initiatives advocate the possibility of the end users gaining back control over their data and privacy.
What about blockchain technology convinced you to move from a VPN company to Decentralized Autonomous Organization (DAO)? What is it about DAO that you find most appealing?
We believe that the future of the internet is in blockchain. Seeing the possibilities of blockchain technology was a real eye opener for us when working in the VPN Industry, it made us realise the shortcomings of centralised services.
SpiderDAO sets a new standard in the framework of DAOs making them much less likely to be controlled by malcius actors or wealthy whales. Having one SpiderConnect Router equal one vote will stop this new kind of problem.
We know SPDR token was the first ever token launched on Polkastarter. Give us the basics about SpiderDAO. Why should one use SpiderDAO and what is SPDR token?
SpiderDAO is a next-generation hardware-based DAO governance model that aims to bring a new standard of fairness to existing DAO frameworks. Traditional DAO models are subject to attack and takeover by plutocracies controlled by wealthy whales.
Our vision is about protecting your internet privacy while browsing the internet and getting paid for selling your bandwidth.
The SPDR token brings together several other components to provide the building blocks for growing and sustaining a dynamic ecosystem.
These will include SpiderDAO – the first hardware-governed DAO with a self-maintaining and self-improving robust hardware and software governance control mechanism; SpiderConnect Routers, which offer multiple roles as a high-speed VPN tunnel, a DAO voting ticket, and a node in a fully autonomous decentralised VPN; SpiderVPN – a virtual private network interlinking all the elements of the DAO and offering a complimentary dVPN service for qualifying users; SpiderToken (SPDR) with various use cases including: eligibility for voting rights as a SpiderDAO participant, liquidity mining and Liquidity as Utility (LAU), and a substitute payment for SpiderVPN services.
Additionally, SpiderMarket will be an easy way to sell and buy bandwidth for SPDR rewards based on the rules in the Service Level Agreement (SLA).
SpiderVault will be created to accumulate two percent of crypto proceeds generated by services utilizing the SpiderDAO which can be redistributed for future propositions. And SpiderDashboard will provide an end-user access point to all the features of the SpiderEcosystem.
You’re known for being “whale-resistant.” Can you explain what this means and how it benefits SPDR token holders?
Traditional DAO models are subject to attack and takeover by plutocracies controlled by wealthy whales, they can easily takeover a DAO by acquiring the majority of the tokens and skewing votes to meet the malicious actors’ needs, whether it was to move the token price in their favour or change a company policy to meet the sinister needs.
The SpiderDAO dual governance model will negate this problem and bring with it a fair and resilient governance foundation on which the SpiderDAO ecosystem can thrive and drive forward the vision of the well-needed Web 3.0.
SpiderDAO has been collaborating a lot lately. Please tell us about some of these partnerships and how they are valuable.
The team has forged partnerships with other tech entrepreneurs who share our vision, wasting no time in building cross-platform solutions.
SpiderDAO has partnered with Exeedme to offer fast bandwidth and privacy solutions for Exeedme gamers while creating a dedicated gaming community for their end-users and $SPDR holders.
Securing and sponsoring the future gaming competitions, hosting online events and securing the network on LAN events creating a real exciting challenge for both partners.
One of SpiderDAO’s first collaborations was with Fire Protocol, a decentralised protocol exchange benefiting from high scalability and multi-asset exposure.
Fire Protocol also offers liquidity mining, enabling users to liquidate assets while shuffling between them freely. Both companies plan to make any and every asset tradable with Fire Protocol’s cross-chain wrapping hub.
While SpiderDAO will uphold the precedents required for utmost privacy for its end-users and for Fire Protocol DEX, the latter will create the demand for the SPDR token by listing it in its domain.
Fire Protocol is the first project to take advantage of the Liquidity as Utility (LAU) SpiderDAO program offering free VPN rewards to all the liquidity providers that stake in Fire’s liquidity pools.
This enables all users to claim rewards as well as attractive APY that are already on offer. This is the first of its kind and now that the LAU program is scalable we will see many more projects in the DeFi space taking advantage of this opportunity.
The fact that liquidity providers can get a real-life, tangible product in addition to a return in APY on their stake is a real game changer. We are the world’s first network to offer this benefit to not only SPDR holders but any project that we partner with. A prime example of this being fire protocol.
We will be rolling out many more partnerships with the exact same benefits to their communities.
You’ve integrated popular DeFi concepts into your service such as liquidity mining. Tell us about the Liquidity as Utility program and how it helps SPDR token holders.
Acting as a liquidity provider (LP) is an act whereby an individual benefits the entire community. We believe that LP tokens should have the same utility as the underlying SPDR token, namely giving LPs access to free VPN.
We call this mechanism “Liquidity as Utility” or LAU. By centering utility around LP tokens, we want to encourage broad participation in the SpiderDAO distribution program, rewarding LPs through a combination of LP profits and token utility.
All LP’s providing $500 worth of liquidity will receive a complementary SpiderVPN for a fully-fledged optimal online privacy setup.
The LAU Program is now a scalable plugin which can be offered to many other like-minded projects who can offer the LAU program to their existing Liquidity pools, this will help create awareness for SpiderDAO and Free VPN rewards for many other LP providers around the DeFi space.
You have also announced something called Spider Nests. Can you talk a little bit about that?
Spider Nests, a staking program aimed at non-LP SPDR holders who wish to access free VPN services. Spider Nests will be funded by the APY Scaling Mechanism, enabling price stabilization to coincide with the growth in demand for SPDR linked to SpiderConnect Router and VPN adoption.
Spider Nests will enable SPDR token holders to lock-up their SPDR token in a “Nest” for either 1, 3, 6, or 12 months, receiving increased rewards and free VPN routers based on the length of the lock-up.
What else can we expect from SpiderDAO in the near future?
We can’t say too much as we are under NDA for many of our upcoming announcements. However, we are in talks with some major brands and centralised exchanges and we will reveal any news in good time. Follow us on the announcements channel for the most up to date reliable news.