Community decisions as a factor that implies project success

project's success

Today we will touch on the critical factor that implies a project’s success. As an introduction, we would like to underline one assumption we consider as the key. Community decisions are crucial when we talk about achieving business goals. This is our opinion at Candao. If you wonder where these conclusions come from, we invite you to read our article.

Be one step ahead of the classic schema

In the classic model, the company is conducted by one or more owners. They are making decisions with the support of the counselors like directors, managers, accountants, etc. They are trying to take the proper steps in generating value-added. That usually means simply increasing revenues and reducing costs. Even though more than one person is affecting the decision-making process, there is not one hundred percent certainty that the owner will listen to what other people say. It can result in many disadvantages. Even well-intentioned decisions can negatively affect employees and their motivation. The decision itself can not be rational at all. Sometimes, emotions can take over control and conduct the project to fail.

The collective intellectual capital is the crucial factor that implies project’s success

What if the product’s recipients were also the co-authors contributing directly to the project’s development? It is possible and has many processes that we will describe now. Ideas that are realized together give you less probability of making mistakes and the ability to appear a synergy effect that will impact the quality of work, finally – profits. It is worth leaving the old schema and focusing on community decisions. Democracy in DAO‘s spirit way gives you a competitive advantage. We, as members, are voting using tokens, and the project’s team is taking the next steps in the development plan. When you have an impact, then your motivation increases. You are conscious that you have the power to choose the next step, and you want to take care of the project development and be an active part of it. Safety is also increasing. It is an excellent idea both for the recipients and authors of the project.

Popular and successful projects based on community’s decisions

Many social projects have been highly successful in history, e.g., managed by DAO Compound Finance. The project consisted of lending tokens and earning interest. There was also Uniswap, a Decentralized Exchange (DEX) working on Ethereum blockchain, where the UNI token owners have an impact of changes in the protocol. The next project that made a huge success was DigixDAO. They are offering GDX tokens that equal one gram of gold. They have created another token DOD that was for the community to decide the future of the project. 

Let’s summarize it as the econometric model

Instead of an ordinary summary, it will be more interesting to write some numbers in the econometric model. 

S = (𝛼 0 + 𝛼 1 I + 𝛼 2 T + 𝛼 3 F + 𝛼 4 t)𝛼5C + ε

This delightful model can be interpreted as follows. Project success (S) is influenced by the idea (I), team (T), funding (F), and time (t). The impact of these variables is potentiated by collective intellectual capital (C). The Greek ε will stand for random components, which is the general set of all variables that may or occur with greater or lesser probability and affect how well the model reflects reality, e.g., political changes or atmospheric phenomena such as earthquakes, etc.

The collective intellectual capital is not the addition for the project – it is its main drive motor. In DAO‘s spirit is democratic discounting of the information and making a decision based on it. It sounds funny, but you should remember – you don’t know what exactly you do not know. You are based on your greatest knowledge, but it is never ideal. This creates the risk of making a mistake and sinking money. When you operate collectively, the probability of failure decreases. Our collective knowledge is our most valuable asset. 

Candao gives you the power of conducting projects together with other users. You can create your personal and brand tokens, which will allow you to collect money for your initiative. You can cooperate with the community. From the author’s and user’s point of view, this is a very attractive solution from the security side. The contract terms are transparent and coupled with the user, who is the author of the project. Thanks to the blockchain, you have the certainty of fulfilling the terms and conditions for one hundred percent. Start operating in DAO spirit and join AS today!