How can DAO with $ 12.8 billion in assets under management become the heart of Web3?

After the world's first DAO (the world's first DAO) was hijacked and destroyed in 2016, DAO hit a slump, but many developers in the crypto community are still trying new and tried things. With mature companies and service providers like Maker DAO and Aragon playing a key role in recent years, the DAO ecosystem has also led to a resurgence. Even DAOs have entered the "unencrypted" world. For example, in recent years Prague, Athens, New York and many other countries have used DAO to manage funds and projects, and the UK decentralized mutual insurance Nexus Mutual adopted from DAO are all experiences. Presentation of DAO.

Currently, many experiments around DAO have been conducted, and a variety of DAOs covering a wide range of topics including development tools, services, communications, media, design and writing have emerged. . and investment resources. Especially since the start of this year, we have seen the rapid export capital of DAOs and helped them improve, and DAOs have become a big player in the market. More and more people believe that DAOs will become an integral part of the changes to the vision of web3.0.

Why increase the DAO? In particular, the questions around the DAO can help us answer these questions. Why do we have DAO (why do we need DAO)? How is the DAO ecosystem currently improving? How do you see the roles and relationships with Web3.0? This article will answer these questions.

Ecological status of DAO

With the continued expansion of digital technology over the past two years and the success and explosion of DeFi, the form of DAO has grown into tools, services, relationships, more publishing, design and writing. DAO has experienced significant growth since the start of the year, and according to data from Deep DAO, to date DAO's total assets stand at $ 12.8 billion. An increase of 1422%, there are 186 in the statistics. The total number of DAOs, members of these DAO organizations, and token-holding members is 17 million in total. Messari analyst Roberto Talamas recently tweeted, citing data from DeepDao, according to which, since August, DAO's membership has increased by 133% to more than 1.6 million companies in 164 organizations. .

Top 5 CAD projects by Asset Management Source: Deepdao

Currently, the top 5 DAO projects are Uniswap, BitDAO, Lido, Olympus DAO and Compound. Aragon is one of the most popular CAD frameworks. According to data representations, the DAO community generally maintains a high performance process and currently has 4,700 threads, 15 million votes, and over 35,000 on-demand solutions. The most active DAOs last week were typically MakerDAO, ENS, Gitcoin, Lido, WEALTHDAO, PancakeSwap, Decentraland and more.

Managed by DAO Source: Deepdao

With the development of this industry, DAOs are also starting to explore different types. Some are used for investment, some are used to develop new products and some are used for socialization. In general, the current DAO ecosystem mainly includes the following categories: DAO Business Process, DAO Process, Investment DAO, Grant DAO, Service DAO, Social DAO, Write DAO, Media DAO, etc. Many agents are DAO service providers represented by Aragon, DAOstack, and Colony, who provide a variety of templates, templates, and tools to provide the tools needed to create DAOs on the mainnet. It also uses DAO to manage cryptographic processes like Kyber Networks (KyberDAO), Polkadot (PolkaDAO), Gnosis (dxDAO), etc.

Of course, the above report only describes part of the DAO ecosystem, and more and more new DAO organizations have sprung up. And it should be noted that in the last few months many DAO organizations have come to know and the solutions have been very effective. For example, ParagonsDAO, DAO voting platform Snapshot Labs, Colony, and Mean DAO recently announced 25 million completions. . , $ 4million, $ 1million, and $ 3.5million in revenue led investors to be content and discuss the value of DAO.

How to understand what DAO is?

First of all, it is necessary to clarify the meaning and history of DAO. DAO stands for Decentralized Autonomous Organization, which translates to Decentralized Autonomous Organization. In essence, DAOs are organizations that continue to go through smart engagements, creating, receiving, and distributing costs around a common goal.

In general, DAOs have several characteristics: decentralization, tokenization, autonomy, autonomous rationality, openness and transparency. Decentralization means anyone can join DAO and donate according to the rules. DAO community policies are set by the community, are not governed or influenced by the central third party organization, and have no hierarchy. Tokenization means DAOs often share tokens as part of a management and support process to promote organizational development, while tokenization means community members do not have to be hired to participate in the process. community management. When all members of the community can manage the app together, openness and transparency means DAOs are implemented using blockchain technology and linked by smart contracts. Rules, responsibilities and solutions are locked in the chain. Therefore, DAO has the advantages of openness, patience, lack of trust, and transparency.

In fact, the meaning and management of DAO is not easy to understand. DAO isn't just a Discord chat channel, it's not just a community distribution channel. Certain tools or key points are needed for better governance, including financial management, governance management, community consultation, voting tools, peer management, etc. They also typically need a community managed token, typically a Homogenized (FT) token.

CAD tools map

Some of these tools will be familiar to everyone, so I won't be sharing them here. Speaking of a few general topics, most DAO vaults are typically managed by Gnosis Safe, the most popular option is the Snapshot platform, and the Discord or CollabLand channel is typically used for community chats and discussions. to communicate. Data dissemination and synchronization tools typically use mirrors. These tools and procedures paved the way for asset allocation that would empower DAO organizations.

After understanding the meaning and characteristics of DAO, let's briefly review the questions to understand how DAO came into being.

According to reports, already in 2006, science fiction writer Daniel Suarez published a book called "Demons", in which computer application demons, due to their decentralized nature, did not allow to own hundreds of 'businesses and participate in underground cooperatives. Although Suarez did not mention the concept of "DAO" in the book, Demons were considered the earliest DAO texts, as people later believed that the main works of Demons were similar to DAOs now.

The term DAO was announced in 2013 by Vitalik Buterin (V God), who wrote an article on “autonomous organisms” before creating Ethereum and understanding it during. The DAO said, "DAO has a virtual organization, some members or members of which 67% have the right to use company funds and change the rules."

However, it was too late to try this idea, and it wasn't until April 2016 that "DAO", the world's first DAO, was born. The goal of this project is to raise capital in the ETHereum community, manage distribution, and members will team up with DAO and vote for joint ventures via tokens. Sadly, in June of the same year the DAO was attacked by hackers, with over 3.6 million ETH stolen and sent, but then with a rollback to recover the money. . However, while exposing the risks of the unknown DAO document, this event still has a significant impact on the history of blockchain development, where the forks of ETC (Ethereum Classic) and ETH (Ethereum) occur.

With the decline of the original DAO project, DAO's development has been long term since then. Some early CAD projects like Aragon, MakerDAO, etc. are still under study but have long been neglected. In 2019, with the rise of DeFi, the popularity of some CAD projects started to increase gradually, attracting everyone to this field. Specifically, at the start of 2020 DAO started to have a new phenomenon with its so called Web3.0.

What do you think of the role of DAOs?

So what is the role of DAOs in the crypto world and their relation to Web3.0 as DAO development?

First of all, in the case of DeFi, DAO plays an important role in this space, because in almost all major applications DeFi, from Uniswap to Aave to MakerDAO, is regulated by DAO. Before the DeFi boom, the financial allocation of tokens to multiple key functions, and in addition to capital and heavy users, the voting community did not always work for employees without distraction. However, there are still crypto professionals who have trusted and adhered to DAO standards, which is a form of community governance necessary for decentralized campaigns. Taking MakerDAO as an example, you can hear the reality of the many policies that colleagues enjoy as a true symbol and benefits of DAO. Therefore, the concept of DAO as a function to extend control and decision-making power to key key holders is still viable and applicable.

In recent years, more and more DAO service platforms such as Aragon, Colony, Gnosis Safe, Moloch, DAOstack, etc. emerged, the rapid development and growth of these platforms have attracted hundreds of people providing CAD tools for a variety of communities Activities. billions of dollars of rain.

New developments across multiple platforms, such as financial CAD, CAD management, and CAD equipment, will simplify CAD development and adoption, and cost and functionality will be smaller, making CAD a blockchain wallet, a browser. It will be the future infrastructure of the encrypted world. Vitalik recently echoed his vision for DAOs, saying that DAOs and smart contracts like Lego Blocks for Management make it easy for people to create new and different designs. DAO agencies reduce the cost of these things.

In addition, from a broader perspective, DAO is also closely associated with the vision and development of Web3.0, and will play a key role in the transformation of Web3.0. In particular, when popular IPs like Metaverse and NFT are hot, DAO can have a significant impact on the product ecosystem. DAO is the heart of Web3.0 and the embodiment of core to cost. If you want to understand Web3.0 in one sentence, "DAO creates and sells NFTs in the meta-world, generates income, and displays perks such as 'assets'. is very interesting and explains the role of DAOs in the popular concept of Web3.0, which can be understood and used by readers.

Currently, DAO's development is in its infancy. If DeFi is a "monetary Lego building block", then DAO can be a "designed Lego building block". Compared to the distribution and growth of DeFi last year, the Total Asset Management (Total AUM) of DAO and the Governance Staking Ratio (Governance Staking) of DAO and DeFi TVL, compared to the whole of DeFi TVL , are still important, so the difference is huge. in the DAO ecosystem is still in its infancy. On the other hand, DAOs still face some challenges, such as how to reduce the initial cost of profitability, resolve efficiency and distribution disparities, and how to control the determination of the instrument.

However, DAO will continue to support design based on the digital design world and will continue to support the development of DeFi and other projects. In their New Year's announcement "Crypto Theses for 2022", Messari pointed out that DAOs are one of the most important models of cryptocurrency. DAO can change everything from business to politics, and can even change your life for years to come. If 2020 is the year of DeFi and 2021 is the year of NFT, then 2022 will be the year of DAO.