DAO, the birthplace of the new fan (consensus) economy!
In the atmosphere of NFT gradually reaching new user base, many people have issued their own selfie NFT. But behind the selfie NFT, we also noticed that some people began to add DAO after their names, such as IreneDAO.
Some people will ask, what is the difference between adding DAO and not adding DAO? What is DAO?
The concept of DAO
The full name of DAO is Decentralized Autonomous Organizatio n , which means decentralization of autonomous organizations. This is an important concept that has emerged since the birth of Bitcoin. It refers to an organization built on a smart contract. Anyone can join and exit at any time. It has its own procedures and rules, and the rules are open and transparent. DAO does not need promotion and intermediary agencies. Its ideal situation is open and fair, arbitrary autonomy and autonomous operation.
Today's DAOs are generally a community of decentralization, and the Irene DAO mentioned in the opening paragraph is one of them.
Community members need credentials to join, and the on-chain credentials to join IreneDAO are NFT issued by Irene. This is very similar to the star's fan group, everyone is spontaneously organized, the star's fan group is because they like the star, and IreneDAO members like Irene. One of the differences between fan groups and DAO is whether there is an on-chain credential . The on-chain voucher can be the NFT or project token you purchased.
The second is whether the organization has issued pass tokens . Pass tokens are an important sign of decentralization. If a certain community member contributes to the community, the community will issue him a pass token reward.
Finally, there is the mechanism of community autonomy. The management of the fan group is the sister of several major stations, and the management of the DAO organization is the DAO committee. The candidates on the committee are voted by the community members together, that is, community autonomy. Everyone usually chats in the community and votes on major events in the community, just like the fan group casually chats in the support group, sucking the face of a star or chatting about his works.
DAO has become the birthplace of the new fan (consensus) economy! But it is obvious that DAO organizations are community autonomy and are more based on certain values.
To sum up, DAO organizations must have the following characteristics :
- On-chain vouchers
- decentralization (token)
- Community autonomy
Classification of DAO
Now there are many kinds of DAOs, and various DAO organizations have emerged and begun to expand at the ecosystem level. Crypto geeks refer to the article "DAO: Devouring the Internet" (The Generalist) to screen out 8 types of DAOs and representative projects that have built a strong product team:
Protocol DAO: The decentralized collaborative entity (company) that builds and executes the protocol. Take MakerDAO as an example, MakerDAO is an open source decentralized autonomous organization created on the Ethereum blockchain. It is not managed by a centralized team, and anyone holding the tokens it issues can participate in project governance.
Social DAO: Community members share a common philosophy and work together to create a strong community. The IreneDAO mentioned above is a social DAO.
Investment DAO: Investment DAO aims to provide support for the builders of the decentralization economy, create an open API, facilitate the community to vote on community investment proposals, and then deploy investment plans. The main goal is investment income. Similar to traditional funds, by gathering investors and their assets for investment. Investment DAO completes expansion by establishing partnerships with projects or conducting token exchanges or project funding (such as ecosystem funds, art associations, income farm partnerships, project laboratories, etc.).
Grant DAO: There must be a return on investment in DAO, and grant DAO does not necessarily have to be a return. Grant DAO encourages the development of projects other than pre-existing projects, and through grants, seeks to promote the broader ecosystem and support promising projects . This kind of mainly occurs in some public chain ecology or relatively large projects. Typically, the foundation initiates a DAO organization, and the committee of the organization issues incentive programs to attract more developers to eco-development products, thereby jointly enriching the ecological scene and attracting more users. The Compound Grants Program provides funding for projects, ideas, and activities that benefit Compound and its ecosystem. The funding program is created after community discussions and can be found in Compound's governance forum.
Service DAO: Similar to "talent aggregator", bringing together human capital that can be used for certain projects . For example, RaidGuild is said to be the premier design and development agency for the Web3 ecosystem. The team is composed of diversified talents with comprehensive experience. However, in fact, the team members come from the MetaCartel network (an ecosystem where creators and operators build decentralized applications). Anyone from anywhere is welcome to join. It is not an "agency company" in any traditional sense. There are no regular employees or company structures, but a real collective, focusing on collaboration.
Media DAO: Collaborative production of public content, including covered topic categories and resource management, etc . For example, ForeFront has established 3 guilds, Write Guild, Growth Guild, and Culture Guild, and anyone can freely join one or all of them through the onboarding process. Guild members will receive community tokens as incentives. At the same time, any community member can propose new ideas, changes, and projects on the relevant Discord channel. After consensus is reached in the governance forum, the formal proposal will be posted in the FF governance forum. Once the proposal has enough discussion in the forum, ForeFront will hold a community-wide off-chain vote on Snapshot.
Creator DAO: Individually centered, usually around some influential stars and KOLs . Just as some fan clubs provide opportunities for influencers' most enthusiastic fans to consume and interact, DAO has the ability to do so. It is created by creators for fans to build a community with fans. For example, Personal Corner helps athletes and influencers control their image through blockchain technology while bringing value to their fans. Athletes, investors, fans can connect in the DAO community.
Collector DAO: Collectors of certain assets or collections, such as NFT . This type of community usually has no intention of selling their collections. For example, SquiggleDAO exists to support and collect generative art, while MeebitsDAO collects Meebits NFT. This type of DAO community can act as a project curator, for example, MeebitsDAO can curate the exhibition Meebits NFT.
What is the value of DAO ?
1.Provide identity to community members
Everyone joins the DAO organization for the same purpose, so everyone can find their own identity. With this sense of identity, the community will have the core motivation to support the community members to do anything, the motivation will be more sufficient, and the sense of achievement will be stronger.
2.Solved the problem of excessive power of some members in a centralized environment
DAO is completely decentralized, and all decisions are decided by community members together. This can effectively avoid centralization of decision-making and satisfy the opinions of the majority, rather than the centralized autocracy of the few.
3.efficient operation of the organization
Because DAOs rely on smart contracts, the operating rules, responsibilities, rights, and reward and punishment mechanisms of DAOs are open, transparent, and run automatically. In addition, through a series of efficient autonomy principles, the rights and interests of participants can be accurately allocated, making the operation of the organization more coordinated and orderly.
4.effectively encourage the operation of the organization
In the process of DAO governance, token is used as an important incentive to pass the various elements of the organization (such as people, organizations, knowledge, events, products, etc.), so as to fully integrate monetary capital, human capital and other factor capital, and better realize the value transfer of the organization.
Problems faced by DAO
1.Legitimacy
The regulatory environment facing DAOs is full of uncertainties. It remains to be seen that different countries and regions will establish regulatory frameworks for these new organizations. And the current environment is that many countries do not support its development. All these are major obstacles to the popularization of DAOs.
2.Centralized reservation
From a practical point of view, complete autonomy or decentralization is simply impossible and meaningless. DAO can promote decentralization to a certain extent, but for some key proposals, especially the early development of DAO, in general, still need a centralized organization to put forward . Basically, the governance rules of DAO communities are generally formulated centrally in the early stage.
3. Coordinated attack
The desirable characteristics of DAOs decentralization, immutability, and untrustworthiness inherently have obvious performance and security flaws. Although it is indeed encouraging that some potential organizations are growing rapidly as DAOs, they also bring many risks that do not exist in traditional organizations.
How to join DAO
Many people want to join a DAO organization, and the currently known way is to join Discord.
Most DAOs operate through Discord, so you can search through Twitter to find out how to join. In addition, some DAOs have publicly accessible websites or repositories of information. So check out their social media and online resources for guides and useful links to deepen your understanding.
It should be noted that because the core of DAO is the community, many people enjoy this atmosphere will spend a lot of time in the community, and then slowly find that DAO takes up a lot of time and energy, so they should properly arrange their time on DAO and be a master of time management.
Future of DAO
DAO enables organizations to get rid of their dependence on traditional institutions, and hopefully become the fourth organizational form besides the country, the market, and the company, maximizing the efficiency and value transfer of the organization, and forming new business changes.
In the future, DAOs will replace companies in many scenarios, making it easier for different groups and organizations to collaborate, making organizational and decision-making mechanisms more transparent, and making the entire society more inclusive and diverse. In general, DAOs are promising in the future!
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