What problems do difficult DAOs still have to solve?

DAO has grown steadily this quarter and since early October DAO's TVL has increased 90% to $ 15.2 billion.

Messari analyst Roberto Talamas, recently citing data from DeepDao on Twitter, said DAO's membership had increased 133% since August to more than 1.6 million companies in 164 organizations.

This year, the number of DAOs with 7 or more numbers increased by 400%, from 12 to 58, and the number of DAOs with 100 or more increased by 73%, from 41 to 71.

A new development in cryptography is the reorganization of the DAO organization. For example, the DAO represents the decentralized self-organization, which adopts a flat, water-based structure instead of the hierarchical and rigid standards whereby society decides on the organization by vote. All community members have the right to vote, and any changes / modifications will be applied after approval.

The DAO adopts the concept of membership. Basically, if everyone at DAO is involved, everyone's passion must be for the organization to thrive. At the start of most projects, this method is very effective. The community is made up of hundreds of passionate and passionate people, who bring all their energy to the project and to work in harmony. However, as DAOs reach tens or hundreds of thousands of members, many problems begin to arise. We will discuss these issues in more detail below.

Before I address these issues, I want to stress that this article does not mean that DAOs should be eliminated completely. Rearrange it only to perform better when it measures. Cryptocurrencies embrace the concept of membership business, where participants and users of processes and products in today's market can have and benefit from them instead of spending more money on marketing. So, for some, the concept of DAO allows humans to create an environment around it.

Incentives for members

As mentioned earlier, DAOs are great fun and work well when they are small. But as they become a larger community, there will ultimately be more people who are less concerned with supporting contract prices. Major DAO Discord, Telegram, and Community Meetings include "Token Economic Upgrade", "Why the Count Won't Go Up", "Token Release", "Token Airdrop", "When Developers Sleep?" It's full of words like comment. A lot of people want to get the most out of their contracts. Few people study the rules, report improvements, or support the development of advertising or other aspects of the project. This is the essence of the situation. 10% -15% of members want to work profitably with a long-term view, while 85% -90% of members want to make the most money and get out.

The greed of the participants often leads to problems in driving the free car. Few people are truly valuable and put all of their effort into it, while most people do anything other than sit down in a conversation and sometimes watch and talk and make memes. Site developer Andre Cronje (Andre Cronje) says "DAO" is the best. There are thousands of people with no long-term vision or intelligence.

Management / voting system

There are two main issues in this case, the first concerns general and minor sieges. The DAO administration thinks the reforms are good because most people vote for them. However, as in most cases, conflicting members often do not make the right decisions. The decision of an unsuspecting member is influenced by thoughts, shared thoughts, and certain personal desires, so the first change can often lead to bad results. Eventually, DAOs will return to where they are today. Terrorists will begin to pressure non-participants and those unwilling to make more effective decisions than consensus itself, and DAOs will eventually merge into the same sheep pot of politics, drama and drama. the bureaucracy that we are trying to avoid.

The second problem is that token vote 1, or energy vote, is equivalent to the token holder system. This is a major problem in CAD design. Just because a person has common chips doesn't mean their opinions are the best and the most useful. Usually, people with a lot of money can buy most of the tokens, which always affects the vote. If the DAO is big enough, someone can buy the tokens and use the policy to harm the organization. Above all, it is very good for sports. Unfortunately, this is not a widespread practice, as not everyone in the world we live in is kindhearted.

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An important factor as the organization begins to grow is the need for change. Because sometimes you have to react quickly when you have a problem or need a big decision. This is not possible with DAO. When dealing with people all over the world, it can be difficult to get a response within 24 hours, making it almost impossible to stay calm. In addition, since it is decentralized, the more participants there are, the more chaotic and disorganized it is. There are many people with different skills, knowledge and experience, all with similar or similar powers. As a result, DAO will end up having more members who do not join or members offering lower rates. Organizations can always have thousands of employees because they have a hierarchical process and a few people decide to prepare everyone. In the long run, DAO is simply weakened by design. Because everyone does their thing differently. She is confused.

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The ultimate goal is to work effectively in a distributed environment so that everyone in the organization can speak without interfering with the overall performance of the organization. It is still an early idea and we will continue to improve it. It will be very interesting to see the differences between CAD and how people optimize the design for different industries. The future is bright.