DAOs aren't just cold. She is in a hurry.

How much does it cost to buy an NBA team? How much does it cost to buy a copy of U.S. Law at Sotheby's? These were abandoned in the past and had no effect on the population, and were not in the custody of ordinary people until "DAO" appeared.

Both are famous DAO events

What is the DAO?

DAO is realDecentralized or decentralized autonomous organizationAbbreviation of English "Decentralized Autonomous Organization", sometimes called DAC, "Decentralized Autonomous Corporation".

On November 23, 2021, a Decentralized Autonomous Organization (DAO) called "Krause House" received funding from the sale of NFT on the Mirror to purchase the New Orleans Pelicans franchise from the NBA. This event has been successfully completed.

They provided 3 virtual card NFTs with the aim of raising 1,000 ETH (about $4.2 million in market value at the time). The Krause House NFT reached its initial target of $840,000 for 200 ETH within 15 minutes of selling. The remaining 800 ETH fundraisers were completed on November 25, and over 1,700 sponsors participated.

According to Krause House's plan, the project took place in three phases. Once the NBA team franchise has been secured, members may be involved in decisions affecting the operating process, including but not limited to start-ups, sales, partnerships, and governance general.

Clearly, $4.2 million was raised enough to cover the annual cost of stealing the NBA team and not enough to buy the entire team. In the end, the Pelicans are worth $1.5 billion, and the current owners and NBA board must agree to a sale.

Pelicans owner Gayle Benson replied "not for sale" to an email saying the Krause House DAO wanted to buy the band.

Although the group did not succeed, the Krausshaus benefited greatly from the media and popularity, and the supporters who participated in the donation received a lot of help. A DeMo trader from Krause House said: "At the moment, if you donate 0.1 ETH, you can get 100 Krause tokens. Now Krause is worth 0.5 ETH, and when the peak is near 1 ETH They also send NFT, for example the price of a ticket in Opensea is around 0.5 ETH, which is 10 times your daily income.”

The Krause House DAO "Crowdfunding to Buy Teams" is the result of another popular DAO event, the DAO Policy.

Around November 2021, 12 people discussed the following ideas from Zoom:How about bringing all communities together and challenging Sotheby's race for the rare first draft of the US Constitution?

They wanted to buy the first copy of the 1787 U.S. Constitution, which went up for auction, but now only 13 copies, which Sotheby's valued at $20 million.

Dozens of people are calling themselves "ConstitutionDAO", and the members are starting to shake things up. soon,Their crowd was supported by Musk's ex-girlfriend, Grimes.. "I think it's very beautiful, it's my second collaboration with DAO," Grimes announced on social platforms.

The "Donation Campaign for Copies of American Law" has passed, with over 2,000 people (many of them different) donating over $5 million in just 48 hours of service to the public. before the start of the auctionThe 7 Day Community has raised 11,000 ETH from 17,437 donors and is valued at over $40 million. That's more than double the price of Sotheby's copy of the law.

The New York Times, BBC and other media focused on the ConstitutionDAO. 17,437 internet users worldwide donate and raise over $40 million in ETH in just 72 hours. “Some of the museum staff are shocked,” said a key member of the DAO law.

Sotheby's Live Auction

Novak is a member of ConstitutionDAO affiliates and affiliates of 28th Street Ventures, an Atlanta-based venture capital firm. "The legal race is amazing," he said, "it's a once-in-a-lifetime event for a chance to win."

Unfortunately, the ConstitutionDAO's long wait for the Constitution was delivered and dropped by a small amount to Chicago rich man Ken Griffin.

One of the main reasons for the failure was that the ConstitutionDAO fundraising was open and transparent and the candidates were aware of the consequences of the previous campaign. Finally, the 234-year-old six-page sales for $43.2 million set the world record for the highest price paid on a competitive record.

"We haven't received the law, but we continue to write history. Largest crowd and largest crowd breakout record in 72 hours... Thank you to the 17,437 donors. written on the right Dao political SNS.

Five days after the end of the contest, the Dao community of the community was in turmoil, and after the discussion was heated, the main organizations of the organization announced the right to close Dao on the 24th and removed all those who had participated in the donation as 1ETH = 1. million people. .

How DAOs Work

Why would anyone join Sotheby's auction via ETH crowdfunding instead of entering the tournament? The reason is very simple: the starting price of a copy of the American Constitution sold was 10 million dollars, and when it was difficult for someone to invest even to obtain a ticket, supporters formed the CAD. For the public of this event

The DAO presidents have stated that they are a group of young people who are primarily involved in the use of technology and cryptography., most members are anonymous. Since the organization involved in the tournament is DAO, which has never happened before, Sotheby's doesn't know what to do with 'DAO', and doesn't know what to do.

Key members immediately identified people aware of the legal issues involved;In order to successfully participate in the competition, you must establish a legal entity that can do business with Sotheby's.

They contacted non-profit organization Endaoment to discuss issues such as information assurance and contest entry, and chose a third platform, Juicebox, as their fundraising platform. JuiceboxDAO is committed to developing DAO financial management software, its policies and data creation are open source with funding.

Leaders launched and planned Zoom video conferencing and began streaming on conference websites. Crowded pages went live fast and ads kept winning tickets when you raised $14 million, you can compete with others when you raised $30 million and won the highest value when you have raised $40 million or more. chance of winning.

The statement also said:Which stock traders are not members of several, but the rule in this publication, and they receive the same tokens as the certificate according to their capital. And these vouchers can be used to initiate approvals and vote to determine what the total investment can do in the future.

The DAO organization said: "When visitors see these publications in the future, they will be reminded of their involvement in this historic time."They mention where the information is going, which is a completely different experience from visiting the National Archives."

For donors, the membership process is approximately as follows: if you join the DAO Legal Donation and go to the crowdfunding page, you will see an increase in membership. click on "Connect Wallet" to donate ETH through your own MetaMask wallet.

After the donation, the offer failed and Dao Dao decided to pay them all back. Every donor receives a "PEOPLE", a badge that not only proves their worth, but also proves to the donor members of the DAO, proving that they can afford to focus on future policies and results.

In response to the question of whether to evacuate, the DAO organizations said that the tokens can be sent to an account similar to a "blockchain vault". , not the decision maker) accept and sign.

Dao Law has 13 organizations established as leaders, and 9 of them must be involved in digital signage to move the tokens. That's because US law requires approval in nine of 13 states before going into effect, and the framework is "to preserve customs and pay taxes to history."

How did the DAO earn the trust of its members?

The most important,A DAO is a public computer code written on a blockchain which can be understood as an electronic contract, the way the contract is executed depends on the law and the electronic signature is the use of technology.

Since the DAO fund public key data transfer is publicly available, you can see that there is no third-party monitoring in the blockchain browser, but all participants can take care of it. In order to buy a project part to transfer funds via the blockchain, 9 administrators must sign simultaneously.

Overall, blockchain overtures and Ethereum smart contracts make DAO contracts reliable.

The revelation of DAO

Although Dao Dao Law could not amend the law, it did not intentionally open a new door for the future. Some of the reasons we are looking for are:Many believe this has caused people to rethink the way they still plan businesses and allocate resources.

During the financial assistance process, ConstitutionDAO did not pay organizations and donors, these 17,437 people quickly raised funds to purchase copies of the US law, and all communities experienced an unprecedented level of solidarity. previous. DAO-type organizations oppose the "business" process.

The DAO decentralizes management power to all stakeholders, the organizational structure is flatter than that of a typical company, and the decision-making behavior of some managers may change from token-based voting habits. All distributions and cash flows have been closed on an open and transparent "chain".

DAOs use blockchain technology to solve some trust issues.There is no need to rely on central organizations, companies or individuals, and anyone involved in the community, even "minority members", has authority.Unlike business management, small business owners can only bet on small but unspoken members.

Additionally, DAOs use digital display tools to represent symbols and clearances only, and backgrounds do not contain personally identifiable information. This organization is therefore global and people from all regions can register. In terms of promotions, the more sponsors, the more DAO Management Token you can get. good circuit.

Restrictions on DAOs

As DAO legislation became popular, the event happened. Musk's brother came up with a project called BiggreenDAO, based on MASKDAO, FREEDAO, SOS OpenDAO...

DAOs oppose traditional professional associations and social capital, but they also have limitations.

First, it is easy for hackers to attack.The essence of DAO is code, and human-written code is divided into good and bad. The business cooperation model supported by the policies also differs from their benefits. Its security is almost entirely guaranteed by the rules, and if the smart contract code is not written correctly, it can lead to malicious attacks and participants lose their money.

For example, on December 2, 2021, BadgerDAO was stolen and consumers were sent without permission. According to the maker of the first unaffected product, the situation dropped by 136,000 bcvxCRV, 64,000 bveCVX, 38 ibBTC/sBTC, 13 bibBTC/sBTC, and 19 DIGG. After it was stolen, the project was shut down altogether.

Second, the development of DAO is still in its infancy, and decentralization and its own organization itself are still in a gray area of ​​politics.This is why ConstitutionDAO must be involved to participate in the Sotheby's auction. Day-to-day operations, financial management and tax issues were not taken into account. Much of public relations must also be embedded within the framework of law or regulation. How to work with administrators and decision-makers to ensure that the operations of the organization are fair, this question is particularly important.

Like any participating organization, DAO organizations are the product of improvement over time. With the emergence and development of blockchain technology, the rapid development of modern network devices such as Bitcoin and Ethereum, and technology-based encryption, specialization, support and development, the use of smart contracts has contributed to the popularity of DAO organizations.

Like the time of creation where all new things begin,There are many uncertainties and there will be risks in the operation of the DAO.In particular, the work of the DAO organization is still in the gray area after the joint announcement of the 'Notice of prevention and exploitation of the transformation report in transformation' by 10 central bankers and the board of directors in September of last year.

According to statistics, today there are more than 100 large DAO organizations. It manages over $10 billion in assets, including social DAOs, print DAOs, media DAOs, service DAOs and more.

We may have to wait for the Web3.0 era to come to a deeper understanding of how changes in DAO organizations might have a longer-term impact on business management and organization. We are lucky.