Will DAO change news or create a playground for the rich?

The ConstitutionDAO, a pro-democracy organization with thousands of cryptocurrency fans, has donated nearly $ 45 million to purchase copies of US law.

In the end, he lost the competition, but DAO also received a lot of attention. The show is full of memes and requests to join the crowd related to this DAO.

However, DAO is an example of a Decentralized Autonomous Organization (DAO) that is all the rage in the venture capital world.

Like open source projects such as Bitcoin Core, DAO projects include both volunteer employees and former employees, often led by paid participants. The way a project raises funds to pay participants differs from project to project.

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Backed by venture capital firm Andreessen Horowitz, Friends with Benefits (FWB) DAO manages more than $ 600 million in assets.

Alex Zhang, director of FWB, former DJ and director of events, which presented the DAO award in May 2021, said the club now has an upcoming sponsorship fundraiser. Up to 40 support members can be registered per month. This program is funded for a maximum of three years.

People often start dao and people will be able to join crowfunding or slide and engaging to avoid encrypt the currency in the range of process.

Many DAOs are the largest crypto-based media companies. Many overlaps between DAOs and traditional financial aid organizations include information. The main difference is that the FWB DAO throws parties rather than news.

In fact, FWB was formed in September 2020 by a group of business friends who received money and invited Ethereum fans who wanted to join the club to buy their tokens.

He then organized special parties for the emblems in Miami, Paris, New York and Los Angeles. According to Alex Zhang, the FWB currently has a total of 2,000 members.

The FWB party for the fans

Alex Zhang this :

We have a team of journalists and content creators who create multimedia tools like newsletters and will certainly go to other content. We will soon be announcing a radio station that will reserve other DJs, and we are moving from a paid subscription model to a holding model.

Dao is most famous includes reporter Daisy Alico and Kyle Chayka newspaper Dao's plans. As with pleastraoo with art-oriented dao, we collect and distribute millions to collect quality equipment.

Jamis Johnson, co-founder of PleasrDAO, who joined Ethereum token sales in 2014, says:

We are writing a letter and now all PleasrDAO members are 74. Our DAO, like other DAOs, has its ups and downs. Currently there are around 5 full time employees and the main communication channel is Telegram.

To date, most DAO members from various DAOs have relied on data from Ethereum co-founder Joe Lubin including MetaMask, Gitcoin, Gnosis, and Infura, especially MetaMask.

He also estimates that Gitcoin DAO has "assets" worth over $ 643 million. A 2021 study sponsored by Gitcoin found that 33% of the 422 DAO participants involved were making between $ 1,000 and $ 3,000 per month on a DAO-type FWB.

Most of the respondents are young people who participated in many Ethereum projects before 2020. Although most DAO participants today appear to be cryptocurrency fans financially, this is not the target of movement.

FWB investor Li Jin aims to make DAO "a cryptocurrency for many new entrants."

Li Jin is an entrepreneur at leading design companies such as Substack, Patreon, and the Mirror crypto-blogging platform.

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At the same time, some school contains huddo heads by Dao and the market. For example, pleasrdao will be one of the rare album of the US Group of Fair.

In early 2021, Wyoming became the first state to recognize the DAO as a legal entity, although the application process is still difficult and potentially restrictive.

David Phelps, DAO Masters, FWB member and founder of ecoDAO, said at least that the DAO movement inspires people to donate to organizations. This site is indeed full of scholarships and millions of dollars given to various organizations.

David Phelps mentioned his DAO, which to date has raised over $ 37,000 for organizations involved in indigenous land reform and the rainforest. “But now our goal is to create a stable business where artists can support each other and earn a living. "

But the problem with this is that everyone, including Ethereum veterans, has no idea how members of multi-million dollar cryptocurrency clubs should pay their taxes. Without knowing it, many participants in the midst of the DAO movement have collected thousands of dollars in tax debt.

“We've seen a lot of contractors, manufacturers and DAOs who don't know their tax laws,” said Andrew Gordon, tax collector at Gordon Law. , Gordon Law's tax attorney.

Gordon also added that there are many DAOs that pay freelance editors and agents out of their own membership tokens, not cash or ether. This means that "taxpayers are responsible for determining the fair trade of their tokens".

This may raise questions about liability if DAO receives DFTs for members. With the start of Tax 2022, some DAO participants could face more taxes than they could afford if the value of these digital assets declines.

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Many young people cannot join some of the DAO mentioned above, so they create their own DAO by doing these DAOs. This is the case with Shannon Li.

He graduated from college in 2018 and quit the job he hated when COVID-19 began to spread everywhere, and has been participating in online coding bootcamps ever since.

He is in the process of establishing his own DAO as he cannot pay the dues of his popular members, and there is no response to requests to join him for free. It starts without tokens, which reduces legal risk.

Shannon Li's thoughts:

The primary concerns of DAO are actual legality and legal fees, and some DAO tokens can be administered as securities. This is the main reason why I want to create a service-to-service DAO rather than a service token for a second company.

According to WECrypto DAO, an 80-person organization focused on providing educational content on crypto to women. Currently in the seed stage, he is focusing on "learning more about cryptocurrencies, disseminating information related to these cryptos to other users, and building relationships in shared learning."

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He will also see what the future holds for the DAO ecosystem as DAO management goes beyond the companies backed and supported by Ethereum founders such as Lubin and Vitalik Buterin.

DAOs such as FWB and Index Coop have worked hard to improve the diversity of DAOs.

Regarding FWB, Alex Zhang said:

Our community is launching a grant program that includes 18,000 tokens to reward artists, producers and others who cannot participate but can apply as they wish. We offer a similar heritage. If you are creating something in the world, you have to be able to handle some costs.

Even today, the devices used by these DAOs are still a general experience.

Awesome People Ventures Founder Julia Lipton, who owns multiple DAOs, said she "always feels risky" to have millions of dollars in digital assets in the Gnosis Safe wallet. .

Market issues aside, exchange rates are still too expensive for the average consumer.

Lipton this:

There is still a long way to go. There's still a lot we don't know about DAOs, not just about taxes and regulations, but also their overall performance. Many members of the community are still learning. Our A / B has tested all of these functions and put them to the test in public.

That's why Julia Lipton has helped find DAO masters and equip hundreds of thousands of ethers to help newcomers understand the opportunities, skills, and risks associated with DAOs.

One of my favorite things about design is profitability and distribution. How can we create a more just and equitable way?

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DAOs are like teams and can provide information to many people who participate in DAO. As a result, they are willing to spend money or work on the media and knowledge they see they represent.

As with all cryptocurrency exchanges, this understanding of participation has broadened with the prospect of wealth. Many DAO attendees, who only mention the story, said they are now joining DAOs in hopes of connecting with potential investors, future initiatives, or DAOs.

It's true that DAO advocates believe they work for many social and media ecosystems. Time will tell how risks and responsibilities are networked when compliance standards emerge.

Julia Lipton this :

DAOs can provide new ways of working and new financial support in the business environment, and when the long-term impact of community tokens is not true, the idea of ​​community membership is still there. .