Beyond processes, media, media and services, how can DAOs develop?

What the Internet does for communication, DAOs can do with capital.

The internet and social media have made it easier than ever to communicate with like-minded people, no matter where they are. The emergence of digital and financial advantages has introduced a new type of relationship in which people love not only to communicate but also to engage with the capital. Like the previous networks, these new networks are not limited by boundary zones and can be developed by a wide range of sizes or extensions through a wide range of options.

Scientists strongly agree that autonomous organizations can change the way people organize themselves and eventually become one of the largest companies in the world in terms of scale and capital.

In this block, we'll take a look at current DAO thinking and major issues surrounding the future.

What is DAO?

Simply put, DAO is an organization that supports software. It allows people to share resources for a common goal and to share values ​​when that goal is achieved.

Just as Limited Liability Companies (LLCs) were the leaders of the Industrial Revolution's favorite organization, so can Web3's DAOs. Companies have their roots in the traditional financial process and are established by legal contracts, while DAOs operate on open blockchain networks such as Ethereum, where they have been configured as tokens and their code can be encoded according to smart contracts.

Because DAOs aren't tied to physical parts, they can move quickly and attract skills from all over the world.

But DAOs can do more than encourage Internet users to share historical data. DAOs can also change the way we plan our business.

What does DAO do?

deepDAO.io tracks over 180 DAOs, manages over $ 10 billion in assets, and has nearly 2 million members. This includes DAOs that help run some of the largest crypto regimes, including smaller DAOs created around the investment environment, community relations, media, and financial services.

DAO protocol

Ethereum has driven the explosive growth of new crypto assets. Based on this, developers have developed processes (such as Uniswap, Compound, and Aave) that allow users to trade and borrow these new tools. But since the purpose of these contracts is to decentralize, it is necessary to know how to control growth and development.

DAO policy is a way of allowing users to collect protocols on future directions rather than letting a small group of developers make all the decisions. Typically, management tokens are sent directly to users based on their past usage and voting rights. Each user can make suggestions for improving the project, and token holders can vote on whether the developer should comply with the request. More tokens = more energy to vote.

For example, the Uniswap token holder is now elected to determine where the Settlement 2 network exchange protocol should be used. The token holders also discussed how to handle Uniswap's over $ 2 billion vault in their marketing strategy.

Token management keeps communities around the deal's bright future, as this is expected to either raise the price as the deal grows, or lower the price if the deal isn't done.

As of December 7, AUM's biggest DAO contracts were Uniswap, Lido, Radicle, Compound, Olympus and Aave.

Invest in DAOs

The second major category is capital and the DAO domain. This allows people to raise funds and invest in specialized funds. Their major investments range from resources such as DeFi contracts or NFTs to purchasing historical data and low-cost sports content.

Like other forms of cryptocurrency, these DAOs provide a simple and easy way to raise capital, but the investment portfolio is expensive and requires legal frameworks. These funds are also more transparent than traditional investment funds because members can verify every exchange in the chain.

PleasrDAO, MetaCartel Ventures, Flamingo and Komerabi are all good examples of DAOs capable of deciding to share market share and split profits as the value of these investments increases. Likewise, Syndicate is a project that creates processes to make it easier for anyone to build their own DAO capital.

DAO sociale

Social DAO aims to bring people's passion to the online community and engage with them around tokens. The most common examples are Friends with Service and the $ FWB token. To participate, members must submit an application and receive 75 FWB tokens. Upon entering, you will enter a community of famous cryptocurrency builders, artists, creators and special events.

By setting up environment tokens, members commit to creating meaningful community information, shared hosting, high quality hosting, and more. For example, as more and more people realize the benefits of joining the FWB community, the value of the token also increases by around a dollar.

Other social DAOs use NFTs as a means of opening up access to larger communities. For example, if you have an NFT Bored Ape, you can open Discord Bored Ape Yacht Club events, events, NFT airdrops, and giveaways. In this case, the perceived value of the community training value is collected by the NFT.

While this type of DAO is still in its infancy and it will take some time to understand which models are effective and which are not, the rapid growth of these communities suggests that they represent a new and stronger organization. .

service DAO

DAO Services is like a capable online organization, bringing together individuals from around the world to develop products and services. Recipients can receive a bonus for special activities, and upon completion, they pay a portion of the bonus to DAO Vault before giving gifts to participants. Participants also receive managed tokens which typically replace DAO members.

Most of the early service DAOs, such as DxDAO and Raid Guild, focused on recruiting experts to build a cryptocurrency ecosystem. Their customer base includes other crypto processes and processes that require everything from software development to graphic design and marketing.

Service DAOs have transformed the way people work, allowing the intelligence world to operate at their own pace and become members of networks of their choice. The first DAO service focused on encryption, but in the future we can expect UberDAO to be replaced by UberDAO. time).

media stamp

Media DAO aims to streamline the way content is created and the users involved in delivery. While these DAOs don't rely on standard revenue streams, they do use token boosts to reward producers and consumers for joining a single channel.

The idea of ​​decentralized media dates back to the “Let Bitcoin Talk” podcast in 2013, but BanklessDAO is a prime example from 2021. Bankless is an advertising focus on Ethereum that creates popular news content and podcasts. Recently, Bankless has bundled air-dropped BANK tokens for its audience. After purchasing a BANK, readers can play an important role in advertising and earn additional income from the BANK by voting on key decisions pointing to creating results in language, science, art, translation, business services and CAD. .

In an era when many believe that today's media-based ad formats are exploding, media DAOs offer the options necessary to tailor the preferences of readers and developers.

DAO Grant / Charity

A DAO grant is similar to a DAO investment, where funds are collected and distributed for various purposes. The only difference is that the distribution is done without waiting for reimbursement.

Gitcoin is a pioneer of this model and provides funding to open up key areas that will not be easy to fund. Likewise, major contracts such as Uniswap, Compound, and Aave have specialized DAOs where communities can vote on how assets are distributed to pay producers and the developer to complete the contract.

As we reassess our generosity, DAO charity has started to emerge. Dream DAO raises funds by announcing NFTs, then allows NFT insurers to distribute that money to DAO's work.

Obstacles DAO

As multicultural perspectives show, DAOs can become the cornerstone of Web3, redefining the way we manage, invest, operate, create, and deliver. In the future, we will see a huge change in the category, range and quality of DAOs.

However, they still have a long way to go. Today we see four main drawbacks.

There are no laws / regulations

No good cooperation

no infrastructure

Risks of smart contracts, fragmentation and sustainability

There are no transparent laws / regulations

Because DAOs are not ubiquitous and do not operate like a business, they cannot be fully adapted to existing business procedures.

Besides having good rules for starting a new business while protecting its members from certain responsibilities, DAOs need to have a wide range of rules and regulations. How do you see DAO tokens and finance from a tax perspective? How to declare income to DAO members?

All of this uncertainty makes it difficult for DAOs to interfere with unencrypted / Web3 organizations, which is a downside. At the same time, a16z and OpenLaw have provided a legal framework for managing DAOs, but implementing DAOs in the future will remain somewhat difficult.

All of these uncertainties reflect the view that in the near future the development of DAO appears to focus on the digital realm. As DAOs try to jump into a system like UberDAO, the rule of thumb will increase.

No good cooperation

The reason business hierarchies exist is that you often need the right people to make tough decisions. Many DAOs exist today in a form of strict control, where 1 token equals 1 vote. In large DAOs with thousands of symbol holders, it can lead to the frustration of deciding that the voting power can be more than intellectual. Likewise, well-informed unelected members can influence decision-making.

Most people think that for DAOs to be truly effective, they need to explore improvements to their management system, such as moving token holders to a design potential that allows them to vote for the appropriate rulers and take decisions. important decisions in a transparent manner. . I agree. Look for the Orca protocol *). In the short term, DAO administration appears to be in turmoil.

No infrastructure design

Just as businesses benefit from strong legal standards and decision-making processes, improving efficiency also has its benefits. DAO's job, on the other hand, is to make the most of the same building design from scratch.

CAD tools for management, payment, advertising, financial management, communications, and all other resources available in modern businesses are still in their infancy. Fortunately, CAD tools are widely available, and hundreds of teams have resorted to procedures to resolve these issues.

There are many groups that cannot be named as management tools, but we are happy to see the new author of Messari who allows you to view and share administration through a single interface.

Risks of smart contracts, fragmentation and sustainability

It's hard to say "DAO" when talking about DAO. Ethereum's first DAO was created around venture capital in 2015. 40% of funds were hacked, losing $ 60 million. As evidenced by BadgerDAO's recent negative rating of US $ 130 million, DAO financial institutions are still vulnerable to smart contracts.

Likewise, even the largest crypto networks have a history of fragmentation due to the fragmentation of their communities. The Bitcoin / Bitcoin split is caused by differences in sizes. The Ethereum / Ethereum Classic split resulted in various "DAO" hack methods mentioned above. There is reason to believe that larger DAOs will face similar storms.

On the other hand, when next winter's crypto arrives, how secure is DAO?

Reconnect the world with DAOs

Despite the difficulties, the DAO represents a change in the organization of the company. If Web3 becomes an Internet aggregation of users, DAOs will become an important organization for measuring membership.

2021 saw the resurgence of DAO experiments and new models. At the same time, the profile of operations and equipment companies that DAOs need to realize their potential is truly the richest in the industry.

If this change continues, we will one day see some of the largest organizations, corporations, advertising agencies, and organizations following open, encrypted networks other than a legal contract. As users improve on encryption, DAOs appear to replace LLCs as the preferred organization in the growing digital world.