DAO Takes Time and Opens New Chapters in Crypto History

In April 2016, crowdfunding reached $150 million and the first decentralized organization in history, DAO, emerged as an open source distribution software for venture capital growth. But two months later, the business was robbed and looted.

This failure did not lead to the exploration of the interest of future generations, and in recent years the organization of foreign DAOs began to form. With innovation in the form of business organizations, DAOs have received a lot of attention.

DAO stands for Decentralized Autonomous Organization. Understanding this concept requires three tests.

1. Decentralization

Compared with the current management system, DAO has the characteristics of classification. However, centralization and decentralization were not one, and many DAO organizations also relied on the support to a certain degree of openness or control, and did not complete the entire distribution.

Therefore, it is more correct to understand it in terms of democracy, for example, as a decentralized scale organization.

2. Autonomy

Unlike "top-down" management models, DAO's "management" and "autonomy" products stand out more. All token holders can participate in voting and voting decisions.

From a strategic point of view, DAOs engage with all stakeholders: investors, developers, consumers, suppliers, partners. From this perspective, independence means that DAOs belong to anyone who can create value.

3. Organisation

In general, DAOs are considered part of decentralized enterprises. Of course, this is more commercial and understandable for enterprise DAOs, but one must ensure that the DAOs are a broad organization and not a specialized entity.xeeb.

The DAO can be not only a business, but also an organization that needs the participation of people, such as partnerships, online platforms and communities.

DAO marks a new chapter in the history of cryptography. As for how this will affect organizations in their old form, we don't know, but the DAO governance model has proven itself in crypto-based communities.

It should go beyond traditional organizations because internet users can collect, exchange and reward the value created in an environment of trust. This new management model will be successful, even if it encounters problems such as poor quality.