Justin Sun backed crypto exchange unveils new DAO with HTX token used for governing

Crypto exchange HTX has unveiled the launch of a new decentralized autonomous organization, teasing a 30% yield for liquidity providers.

Backed by TRON founder Justin Sun, crypto exchange HTX (formerly Huobi) has unveiled the launch of a new decentralized autonomous organization (DAO) dubbed HTX DAO, which, according to its description, will serve as a platform where “pioneering concepts and transformative projects find realization.”

Congrats @HTX_DAO???? #HTXDAO is officially launched, revolutionizing decentralized governance in the #blockchain ecosystem!

— HTX (@HTX_Global) January 18, 2024

According to the DAOs whitepaper, governance will be conducted using HTX tokens. The DAO emphasizes that the HTX token is not intended exclusively for the exchange platform, adding that it has taken measures to reserve a portion of the HTX token for voluntary conversion to “further underscore the distinction.”

“To further underscore the distinction, the HTX DAO has taken measures to reserve a portion of the HTX token for voluntary conversion from the HT token by HT token holders.”

HTX DAO

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While the precise purpose of the DAO remains unclear, its description suggests that members can present preliminary proposals on the HTX DAO forum. However, it does not specify whether these proposals should be related to the HTX exchange or Huobi ECO Chain (HECO), a decentralized public chain developed by the Huobi Group.

The official HTX DAO website hints at a 30% APY for those contributing liquidity to the HTX/TRX pool on Sun.io, a TRON-powered platform for token swapping and liquidity mining. However, the website does not specify the timeframe or requirements for this APY.

While the HTX DAO website states that HTX holders can enjoy advantages from both the HTX DAO and various privileges on the HTX exchange, allowing them to fully engage in the decentralized finance and centralized finance ecosystems, it doesnt elaborate on the specific privileges associated with the exchange.