The Nervos DAO is an entirely permissionless, decentralized, and trustless feature of the CKB economic model that enables users to secure idle CKBytes from secondary issuance and earn rewards similar to staking (without having to trust a third party outside of Nervos).
Secondary issuance, as defined in our positioning paper, is designed to impose an opportunity cost for state storage occupation. This is because CKB is a deflationary asset, similar to Bitcoin. By design, Nervos CKB's token economics have been developed to offer long-term CKByte holders with a supply-limited cryptocurrency, comparable to Bitcoin's token economics. Therefore, the Nervos DAO acts as an ‘inflation shelter’ against the effects of the secondary issuance, retaining the value of your CKB over time (while earning rewards).
The CKB explorer provides a comprehensive view of Nervos DAO's on-chain information.
Further Reading & Guides:
- What is the purpose of the CKByte Token Issuance (Base vs. Secondary)?
CKB Official Docs: Deposit and Withdraw in Nervos DAO