Translating CAD trends in 2022: correct CAD

Since the publication of the free form Bitcoin in 2008, blockchain technology and the liberal cypherpunk ideas it conveys have evolved unstoppably.

The concept of stages in building smart contracts is incomplete with the concept of decentralization and lack of trust.

DeFi absorbs and innovates the tools of the traditional financial industry, laying the foundations for future seedlings.

NFTs use continuous encryption to connect the virtual and the real.

Different Dapps have different concepts and play a role in the application layer.

Their concept does not limit Satoshi Nakamoto's primary idea to set up a peer-to-peer electronic payment system, but to continuously infiltrate economic / cultural / political and organizational information of human life.

Of course, from the nomadic life of the primitive age to the colonization of the agricultural age, the development of the social structure of the feudal city and the hierarchical system to the modern The system of state and enterprise are inextricably linked to the conception and development of the feudal system. organizations. The DAO model and strategy seem to answer this question. This concept was first mentioned by Vitalik when he published his Ethereum white paper in 2014, referring to a decentralized blockchain-based autonomous organization.It was seen as a spark that interferes with and normalizes the production process and even the relations between manufacturing.

If blockchains, smart contracts, NFTs, DeFi protocols, and DApps are all tools, how would DAOs use them to develop new products and create scripts? Why does this happen and how does it grow? If we feel like it, what will we do with the time and come together? These are the questions we want to answer one by one in this sentence.

Know DAO

In addition to the terms mentioned in this introduction, [Web3.0] and [Meta Universe] are essential terms to better understand what a DAO is. Web3.0 and Metaverse are accelerating the process of digitization / virtualization and globalization of today's world. It is necessary to determine it and explain it in order to try to answer the question of how / what role we play in this process.

What is DAO?

Linda Xie of Scalar Capital Investment Association gave a positive response in her article “A Beginner's Guide to DAOs”.Decentralized Autonomous Organization (DAO) is a group of organizations that work together on integrated systems used in blockchain.Indeed, by the term "decentralized" we mean protectionism and governance, and "autonomy" is based on smart contracts, which are the very essence of the application or programs running on an open platform. “Chain” is about transparency and openness, and “environmental work” means that members of an organization are committed to achieving specific goals.

Coopahtroopa defines DAO more broadly.DAO is a commitment to share benefits with communities.. DAO is looking for:

1. Allow members to express themselves through management.

2. Flat organization for smooth operation.

3. Appropriate allocation of resources to achieve objectives.

Other general comments:

1. DAO is an online community that shares activities / goals / strategies and financial resources.

2. The central organ of the DAO is the authority to submit to the public account, not the article sent to the judges.

3. DAO distributes funds according to group priorities, promotes cooperation and punishes behavior in community, under, change and loose organizations.

all,DAO is definitely a blockchain-based internet organization that takes into account all aspects of blockchain including transparency / decentralization / reliability. At the same time there are also issues of organization, structure / culture and management / structure with the characteristics of the relationship with the product and the relationship. It is always useful with certain goals or objectives and is supported by an endorsement based on production data.

After all, whether it's a 10-member, 1 ETH trust group, or a DeFi deal with over 10,000 token owners managing over $ 1 billion in assets on the chain, the problem is that DAO is trying to fix this problem:

Many proponents believe DAOs can change the way we work, make decisions together, allocate resources and wealth, and solve some of the world's biggest problems.

a similar concept

Vitalik Buterin describes DAO and other confusions [incomplete information], including Decentralized Autonomous Organizations (DAO) / Decentralized Autonomous Enterprises (DAC) / Decentralized Applications (DA) / Decentralized Organizations (DO) / Autonomous Agents (AA ). on]. As the figure shows, these ideas are divided into quadrants in terms of the degree and extent of automation and the presence or absence of internal finance.

DAO = Internal financing, heart of automation, human methodology.

Ethereum et DAO

Not many people know that DAOs are the real reason Ethereum was created in the beginning. Earlier, Ethereum co-founder Vitalik Buterin mentioned self-regulatory organizations in parables for his 2013 [Ethereum White Paper].

Dao

DAO was launched on April 30, 2016. It is one of the first DAO (decentralized autonomous organization) and venture capital companies. 11,000 people invested 11.5 million ETH, or roughly $ 150 million, or 14% of total assets at the time, and plan to participate in the cryptocurrency project.

Two weeks after the fundraising campaign, TechCrunch announced "."

However, within two months hackers attacked DAO and stole 3.6 million ETH. At the time, that amount was approximately $ 50 million. Today, without a fork, the value of ETH stolen by DAO hackers could reach $ 14.4 billion, making it one of the costliest hacking attacks in history. Since then, the Ethereum core team has handled situations that could lead to Ethereum's collapse using a difficult platform that still has issues today. This keeps Ethereum's pockets and fundraising constant, but most people's perception of DAO strategy is killed by it.

Vim li cas DAO

The DAO event enters the Ice Age for DAO development. But due to her own description and attitude, her values ​​always explode new sparks.

The differences between DAOs and operating agencies are common

In a typical business enterprise, the decision of the organization depends on the number of people. Companies have owners, executives, executives, CEOs and other executives, and often have an interest in these responsibilities. Members of the organization have not been involved in important decisions and development processes, and integration is still essential in good organizations today that oppose persistent and open democracy.

As mentioned in the Understanding DAOs section, the Decentralized Autonomous Organization (DAO) is a decentralized autonomous organization that is not affected by a central authority. Open source code programs are used for decision making, and an organization's financial information and resources are stored on a blockchain. An important advantage is that it is more transparent than traditional businesses because anyone can see all operations and finances in DAO. This greatly reduces the risk of corruption and censorship. Owners of venture capital firms can understand the day-to-day finances of the organization. Because the DAO balance sheet depends on the public blockchain, it is always transparent, including all exchanges.

The need for CAD

DAO and Blockchain

While the shadow emerging from the challenges posed by the DAO situation still exists, blockchain technology has always had an impact, but there are descriptions and highlights. As more and more ecology and projects have been developed in recent years, more and more open source and transparent code is available. Many skills have been regularly assessed and honed and have already established a good foundation for the above models.

DAO and DeFi (Decentralized Finance)

DeFi appears to function as the channel's business base. There are also many interactions between DAO and DeFi.

1) Establish a business base

In recent years, the rise of DeFi (decentralized finance) has provided the superstructure with more open financial options and more financial tools. At the same time, DeFi does not depend on banks or other existing systems, which makes the chain operation easier and more secure. This infrastructure allows community members to derive significant benefits from their involvement. It also encourages and encourages more intellectuals to join the organization.

2) Incentive to innovation

Many DAOs are starting to embrace fusible / non-fungible tokens, whether they benefit and reward members for their participation, or how users benefit from loans / contracts or other means of generating income for their contracts. . Promotions are offered to teams and members to take advantage of the value of tokens and many other perks.

3) Fast delivery

Developers are slowly realizing that farm income can raise money for new DeFi primitives. The “fair form” of DeFi Revenue Gathering Yearn Finance (YFI) (all tokens are divided into funds and issuers if not included). ) “The idea was to change the description of financial business plans into community financial plans. As YFI goes live and grows rapidly, many competitors will start to 'clone' and 'clone' and promise to improve, but more importantly, the start of the new DAO token policy.

Additionally, as DAOs manage more and more DeFi assets and more community members participate in the management of DeFi activities (although most members are involved in the management of DeFi assets due to great awakenings),In the future, more DeFi devices will interact with DAOs, and DAOs will also support DeFi devices.

DaoTHE T.V(Non-fungible token)

NFTs are an important part of the meta-global context and are requested and approved. DAO sitting on NFT ——

DAO et WEB 3.0

If you think Web3 is an inevitable future, DAO has positioned itself in the middle of the future due to the importance of its organization and functionality. For more information, see Messari's 2021 annual report.

DAO development status

After recognizing the strengths and weaknesses of DAOs, what types of DAOs have been developed to compare to existing business models? How does he achieve governance? We will provide readers with more information on these questions by combining several examples with different distributions and teaching them separately. We will provide readers with more information on these questions by combining several examples with different distributions and teaching them separately.

estimated separately

DAO, a cultural management organization that makes collective decisions, uses about three types.Approval process, application decision process and intermediary services.

Basic governance / protocol:

1) Control occurs off-chain.

Bitcoin: P2P payment system, founder of the blockchain consensus.

Ethereum: An open source public blockchain platform with smart contract capabilities.

Tezos: Turing - a comprehensive smart blockchain agreement that gives participants control over network rights. for

Polkadot: A scalable and heterogeneous multi-chain system that validates the dynamic data structure of relay chains.

Cosmos: aims to connect to different blockchains called “Internet of Blockchains”.

Tool architecture set:

region; Aragon; DAO group; Snapshot 等;

Application layer:

Following the section according to different demands such as LAO, Moloch DAO, makerDAO, compound, etc.

1) Investment orientation - DAO Finance for Investment:

Moloch DAO /MetaCartel

Bit Aw

rao u

2) DeFi-oriented explosion of values:

Ua Dao

compound

Uniswap / Sushi

3) Service oriented DAOs that provide specialized services:

Dao building

PLEASE

Deep dao

4) Cultural Orientation - DAO is formed by various cultural models:

NFT/Collection/Culture/Jeu : Flamingo/PleasrDAO/BAYC

Media / Platform: BanklessDAO / Mirror

5) Practice Oriented - DAOs focus on specific goals to accomplish specific tasks / objectives:

law

DAO is launched by many communities

size

Bitcoin: the first DAO

as previously mentioned. Simple, straightforward and even silly, but irreplaceable and doing nothing, Bitcoin has become the key to abolishing human control and making rules.

In the pre-Ethereum era, DAOs followed the Bitcoin consensus on chains and community governance. As the basis of the public diversity channel, the use of DAO was also different. The standard off-chain chord discussion, represented by the BIP, further supports network changes, but there is still some debate about improving performance and implementing chains. Since then, control logic for automatic modification has appeared on channels such as decred and tezos.

Moloch DAO: Sacrifice and Baptism

Old records, Moloch, often refer to the god Moloch, as well as records of burned children. For children under fire, the traditional description is to burn the surviving children in front of Moloch. However, there are people who think otherwise, and since it is a disinfectant made by fire, this is a situation where it is more dangerous.

To join the Ethereum fund plan, you must first receive a gift (currently 10 ETH), and you must have permission from current members to vote to become a member of Moloch. Its goal is to provide crowdfunding for Ethereum infrastructure projects. At the time of this writing, Moloch DAO has contracted 7,718 ETH and declared 5,556 ETH, and UnionBank still has 2,162 ETH. However, most of the over 5,000 ETH freebies are not grants, and a significant portion of them are voluntary member withdrawals.

MakerDAO / Compound: DeFi and DAO merge

While blockchain technology and regulation is only for cryptocurrency enthusiasts and geeks, regulation is only attracted to a few. The actual involvement of the general user in administration usually begins at the application level. makerDAO was not only the founder of DeFi, but also the start of DAO's success. The end of the user-facing application layer protocol really gets people thinking about their rights as a cashier.

The non-meetings are done by assemblies, and if these issues are supported by the majority of assemblies, they can vote on the channels and the ballots have been collected. Voting takes place on the MRK, and all users of the symbol can participate in the administration. In MakerDAO Forums, consumer reputation does not directly affect voting.

the same time,

In June 2020, the main developers decided on the policy and changed the way the network works and the membership of the community. Unlike previous DAOs, managed DAOs provide community members with contract management and custody of assets created by mortgages and income loans. Compound announced new token distribution models that aim to support capital growth for the chain process and provide users with a reasonable lending rate. In these models, consumers who provide income on contracts or establish loan relationships through contracts will benefit from Compound's Native Token (COMP). This allows each Compound user to be a direct stakeholder, allowing multiple users to become community supporters and voters.

These financial supports play an important role in managing priorities such as interest and interest rate needs. The distribution of tokens seems to see the fulfillment of the distribution dream: management process (and financial adequacy). Because the Compound process has millions of dollars in assets and assets to manage, a new form of DAO community has arisen. There is a clear reason for participants to spend their time, resources and vote in controlling online communities. Indeed, only the growth and development of online communities are affected by personal preferences.

BanklessDAO: A valuable example of corporate partnership

BanklessDAO started out as Media Bankless, which was established in 2019. It was originally a newsletter on the transformation of the crypto industry. Although the Bankless DAO business was started with the inauguration of Bankless Media, Bankless DAO is the product of community consensus, no legal community business has always existed and the lack of independence of Bankless media operations. There is no overlap between the two corporate levels and the legal level.

Membership is required to participate in collaborations and discussions, and events are organized for a certain number of BANK tokens. However, this is more optional and there are special channels to request a special pass on the server. If you express yourself and your preferences on this channel, you can easily ask the guest to go through and open all the locks. . Participation in speech and collaboration.

In addition, BanklessDAO has a full range of business operations and design capabilities. The first is used in a document in which the operation and implementation of financial institutions are co-sponsored by the financial institution, the appropriation committee and several signatories, and the union (financial union) is almost identical to the chief financial officer. of the financial institution. Always look for financial companies and key roles in the business that perform both financial planning and maintenance. Compared to the diversity of other organizations, this is all very heavy and most of the members have a lot of financial management skills.

ConstitutionDAO: The prosperity of the soul of DAO

DAO constitution. . On November 14, 2021, one of the 13 laws of the United States entered into competition. To bid on a copy of the US legal code, the crypto industry entities set up the DAO ConstitutionDAO, which was funded by providing tokens of $ PEOPLE for 1 ETH: $ 1 million PEOPLE. According to statistics, 17,437 users made donations.

After the contest is unsuccessful, users who receive the donation can redeem their ETH at no cost, but most of the $ PEOPLE money is still a token and an approval token. And since it was mined by ETH participating in free bets and can be burned in exchange for ETH, $ PEOPLE, like Bitcoin, has deflationary characteristics.

Made a meme

undoubtedly,The decentralized governance model of the DAO has the advantages of the existing governance model in terms of governance. DAOs can also be involved in involving stakeholders in the decision-making process and in obtaining management approvals that remain confidential in existing governance standards.. However, although it is still in the early stages of development, DAOs still have the following issues and issues:

1) Centralization and decentralization: on-chain and off-chain balance

Effectiveness of communication and decision-making:Freedom of decision inevitably leads to poor judgment. All microscopic decisions have to go through a voting process, which can increase the cost of communication when making decisions and not everything goes as planned.

Risk forecasting and management:Since self-regulation is fundamental to the planning and development of smart contracts, DAOs rely heavily on sound policy making and anticipation of risks and responses to the situation, and will inevitably fall into the trap. centralization.

2) Community structure focused on profit:The objective of the DAO is minimal and the organizational structure is loose. Consequently, the DAOs risk in the long term falling into the policy of "Spartan independence". Additionally, over-reliance on incentives to get more community members to join the administration (especially DeFi-type DAOs) will prevent them from participating in the selection process. tsa. Since people often vote for incentives, giving incentives to vote actually reduces administrative control and makes applications more difficult.

3) Unification and unreliable voting:As recently happened in SUSHI, if an organization is willing and has a certain voice and authority, democracy will have nominal government. At the same time, there is no voter participation.

4) Signal to noise ratio:Low barriers to access have created significant differences in members' skills, attitudes and communication, and the creation of more information can affect key voices.

Ideas and examples

1) Can I have decentralization.The governance process planned for intermediate and decentralization issues will take a three-step process to address decentralization issues, with the objective of “creating security, monitoring community enterprise products”.

Product fit:The first step should be the same as the first step for starting the work. A small team, putting all of their energy into designing, training, and iterating until you find the right product for your product and explore its values ​​and goals. real team.

Community involvement:As companies complete product marketing and marketing, they should strive to engage with multiple direct stakeholders. You may decide to use values ​​and symbols to promote ongoing support to promote community engagement and equity.

Adequate decentralization:Once a team has completed the first two levels, the tokens can be distributed to a larger community. This is called "community outreach" as a replacement for an IPO, PSPC, or regular acquisition, and is the term for a project or business becoming a DAO. . By enabling smart contracts, establish a variety of rules and regulations to be successful.

2) Multidimensional control.A possible example is that the occurrence of the right in the smart contract depends not only on the expectations expressed by its members, but also on the future market. , the specific realization of a particular time, or the intersection of time and space.

3) Meta management.In the article "When we talk about blockchain management, what are we talking about?" recalled that the general management comprises three levels of policy:

operating policy.It represents the rules that affect modern chain decision making, often related to operations. For example, makerDAO fixed price, Ethereum oil upper limit, etc.

Group selection rules.It generally refers to the rules used to establish the operating rules of the governance chain. For example, what rules does makerDAO rely on when trying to convert a fixed price? What is Ethereum relying on to replace oil restrictions?

Electoral politics.Meta-governance refers to the rules used to determine who is eligible to develop policies that affect selection, and the design of this level in the chain is still poor. For example, Ethereum uses all of its members to decide how to handle DAO situations. In terms of mechanisms, blockchains would choose a hard fork to avoid these problems, but the importance of this policy (meta-governance) has not yet been ignored.

4) The advantages of anonymity.For controversial issues, this can be accomplished using on-chain or off-chain apps for self-identification and self-protection. Identify yourself for a person, a vote, or anonymously to remove the famous film.

God!

This sentence usually deals with a simple process: how to join the wave of the DAO era.

CAD selection

Before choosing or joining a DAO, it is important to understand your roles and goals. This will help you find an organization that you are willing to invest your time and money in and come back to in the future.

Some tips and procedures

Beware of the pitfalls of decentralization:DAOs differ in all respects in industry standards, but don't blindly see the difference and blind fairness is good. Pay close attention to the level of community involvement and dialogue and your ability to manage risks, whether upside or downside, loose or tight.

Understand the vision and values ​​of the project:This is the only way to boost the start-up and confidence in your project.

Focus on innovation:Capital likes to reward projects that are interesting and capable of further innovating.

Join the DAO

If you still have doubts about DAOs or the world of crypto, we recommend that you start a new one with some experience.Rabbithole is one of the most widely used cryptocurrency platforms in the world. "Learn the income".

We offer a few actions for users to quickly understand and familiarize themselves with the world and benefit from the token.

jump in the rabbit hole

[Ethereum Wallet] Take your seat and jump into the rabbit hole!

everyone is sympathetic

DAOs are somewhat similar to today's internet devices. Your persistence is your most powerful weapon. When all users join an organization, the same beliefs, design, management, performance, and security of the organization are also incorporated and replicated. For individuals, it is only through the exchanges of visitors, professionals and investors to producers that they can benefit from the sharing and creation of business income. The results have not been taken into account. account.

CAD creation

As a community of developers or as an individual seeking to achieve a specific goal in a DAO document, the following points should be observed and considered.

Ready to think:Establish respect for the values, vision and objectives of the organization or community.

tools and services

As a tool, we recommend that you use Aragon / colony / moloch and other tools for creating DAO, which is currently the strongest and fastest [Aragon].

More management is important

Collective asset management:Establish procedures and policies for fundraising-distribution-management. He even reflected on the question of how a business in an organization can achieve a positive cycle if it develops and grows in the future.

Crisis management:Since DAO assets are typically hedged assets, risk management is particularly important to protect future investments in the economy. The vaults of some DeFi and NFT DAOs represent hundreds of millions or millions of dollars of assets that are used for financial development and valuation, providing insurance coverage for delicious contracts and used for development and purchasing customers.

Design of household appliances:Heritage renovations are typically done in NFT listed DAOs such as PleasrDAO. These DAOs have traditionally served as custodians of art and culture, and DAO management tokens are used to vote for increases or decreases in the assets of the custodians. Token distribution, liquidity, difficulty in price manipulation, and asset quality as measured by historical volume are important to DAOs. Since most of these DAOs use managed tokens as illegal or unsecured insurance funds, which can be refunded in bad credit condition, it is very important to exercise caution and reason in selecting the right one. heritage.

Assistance method:Comprehensive support can help organizations learn skills quickly and securely and can be an important foundation for DAO governance. Without financial support, network members have no reason to invest time, money or energy in the network, there is no reason to vote for DAO resolution recommendations, and no one can advance and complete this agreement.

Financial aid:About reimbursement for member services.

Development incentives:One of the sources of income comes from holding tokens in the community.

Encapsulated agriculture:Proceeds from participation in community activities and activities.

Retroactive releases:Establish a membership or re-reward early adopters to broaden the experience.

After looking at the above issues, how to run DAO is another big issue, often related to using management tools, subdivision, and hiring specialist staff. .

Look at its meaning,DAO governance is about who is involved in administration, what governs, and the policies that apply. The development of these specific concepts in accordance with the specific objectives and policies of your organization is particularly important for the governance of DAO.

concludes

The competitive source of DAO

In the long term, to achieve Vitalik's vision of having no leader in the business, DAOs must be competitive to improve other forms of collaboration and management. Therefore, based on the theory presented in Hamilton Helmer's "Seven Powers: Business Strategy Fundamentals", let's take a look at the pros and cons of DAOs.

Scale effect:A business whose value decreases as manufacturing increases. In theory, this could help organizations reduce the cost of new products they create or new users they receive. The DAO model can also reduce costs by paying for more services as needed, and has less friction compared to traditional, but less robust organizations.

Network effect:This means that when new users join the network, the cost of services for each user increases. In the case of DAO, the user is the owner, and every time someone else joins DAO or uses the contract, user tokens theoretically become more important. Also, the stronger the DAO, the more people create it, the stronger it gets and the more people it likes.

Positioning of the station:In other words, new entrants get new, better business models that don't emulate existing ones, even if they hurt existing ones. DAOs, by their very nature, are capable of creating strong wedges against their existing counterparts.

the conversion rate: That is, the loss in value demanded by consumers due to the change of seller for additional purchases. This is a difficult question. On the other hand, DAO members get a conversion fee because if they convert to the DAO concurrency, the cost of tokens they have in DAO will be reduced. However, as SushiSwap illustrates, blockchain-based protocols are new and similar processes that are compatible with existing ones. This score is as low as the gap, but the lower exchange rate is part of the beauty of DAO.He developed a Darwinian dynamic in which contracts were constantly challenged so that stakeholders could benefit and ensure adequate funding.

Brand effect:That is, similar products have a higher cost and a longer lifespan, and are marketable products based on historical supplier data. If you think of Bitcoin as a DAO, look at the involvement of subscribers and holders.

Capital limits:In other words, get the treasure first which can make itself more valuable in the value of engaging content.

The strength of the road:In other words, the company's stable services and operations are designed to reduce costs and produce better products. As a concern of the DAO alone, this capacity is weak due to the slack in management and personnel processes, and these processes and functions can be changed at any time as the vote is taken, rendering the DAO ineffective. terms of effectiveness. . However, constant trial and error and innovation across the ecosystem can often lead to unintended consequences.

love love,By providing greater financial support to DAO users, partners and stakeholders, and by allowing stakeholders to engage with the terms of DAO management, DAOs have the potential to create a very solid divide.In the competition theory used by the industries mentioned above, DAO has the best results. DAOs are hard to slow down or limit when they hit speed. Specifically, it means that community governance is a must. Can be determined by the community Repair and improve long term results in a way that maximizes effectiveness.

prophecy and purpose

In general, DAO development is still in the early stages of exploration. We are a long way from Fukuyama's argument in “the end of history” that “democracy” will become a world government. "

Francis Fukuyama, in his book "The Great Break", emphasizes the importance of childbirth in modern prosperity. As refugees. Setting personalized results on the previous page. “In developing an autonomous blockchain world without external authority and force, the research and development of design decisions will be the most important and intellectual development.

From the early days of the birth of the blockchain, all participants have submitted ideas for key questions that are also questions of global crypto organizations. “How can decentralized individuals thrive in a cleaner data environment? Will you work together to achieve this goal through integration and collaboration? ". In the real world, we create areas of sociology to answer these questions. In the crypto world, corporate relationships are defined by agreement by law, and the unique product that the blockchain was originally born to also gave the name DAO, full of oriental zen scent. Even now, 13 years later, she still has something new and hippie on her mind. One possible answer is that it seems inappropriate to provide ownership and management of a project or business to communities. However, as long as we understand and think a little more about DAOs, stakeholders are the natural state and we will find that we do not have the skills or standards to manage governance, general respect and membership.

view

With the growth and development of DAOs, more and more crypto / currency organizations are joining the wave of change in the process of modern cooperation and integration. I thinkIn the future trend, DAO will gradually break the chains of tradition and strategy of the crypto industry, allowing more young people to participate. Continue to explore regional issues in governance models as they see greater efficiency, increased capital investment, including best practices and aspirations, and contribute to ecological improvement, and play a role in a variety of new ways and activities. New organizations will emerge. who designed and excelled the Internet giant. As research into relationship governance and relationship models of new organizations, DAO will surely have an impact on other changes to Web3.0 and the global meta.