Decentralized Autonomous Organization is becoming more and more popular space embedded in blockchain where people are getting together to release their talents and take advantage of collective intellectual capital. That’s the place where real democracy and freedom are the fundamentals of working. Why is the DAO a creation that will survive the test of time? Learn more from the article!
The beginnings and principles of operating
DAO was released as an open-source digital area. Its main assumption was to be liberated from capital funds manipulation. It worked on similar rules as venture capital, but the main differences were the lack of management structure and the possibility to share investments between all interested parties. This precluded the need to spend large amounts of money as in the case of classic VC. The first DAOs were based on the Ethereum blockchain. The core of the functioning were smart contracts. They are executing rules established by members of the community that form the organization, who are managing collectively by voting. The power of the vote depends on the number of tokens held. Every DAO can be subjected to a public audit.
In the characteristics of this type of organization are included values such as transparency, freedom, truth, and starving for development. DAO is a space for people who want to avoid the threats which appear in a centralized world from every side like the lack of integrity, information asymmetry, manipulation, unfair competition, or hate. When you become a part of DAO, you share in its model, contribute to its success, and benefit from its strengths. It’s a better version of the “external” world – here people are the most valuable resource.
DAO is a future
The centralized world is far away from ideal. DAO is the social response to its diseases. It’s a great chance not only for members but also for the whole world as a recipient of the projects created inside the autonomous ecosystem. The collective intellectual capital is the germ of many ideas that may be ahead of their time. In other circumstances, they might not have had such an opportunity, primarily because of organizational difficulties. Ideas that go beyond what we are used to are difficult for investors to convince. If you have to look for them by standard methods, it can be difficult. First, because of the capital outlay. Technology-related ideas are usually expensive. In DAO, the costs can be divided between many members. Larger investments shared among a considerable number of investors are feasible. Otherwise, it would be very difficult to find several investors who would put up significant amounts. There is one more considerable facilitation – DAO members are finding the project that is interesting for them on their hand, you don’t have to do it with classic tools like phone, email, and massive outlays for marketing.
Why is DAO the real destination of modern development, not only a hype which could have gone with time? The answer is simple – it is based on truth, which is always the best asset. We can define the organization as a picture of the world that we could have daily if human greed didn’t make it ill. Although we describe it as an innovative discovery, it can be otherwise defined as an ordinary world that has not become broken. Real value defends itself – it is always worth choosing truth over chaos, on which the nowadays centralized world is based.