DAO is the abbreviation of Decentralized Autonomous Organization, it aimed to solve problems by commencing community proposals and having absolute respect for the final voting result.
In the world of blockchain, people believe the immutability. “Code is law” is strictly enforced by every smart contract.
In our own interpretation, DAO exists to serve the immutability, calibrate information, and make sure the world of blockchain runs not solely under the law of code, but under human interference as well.
Explicitly thinking, one of the most significant characteristics of blockchain is that: everything operates under strict logic enforced by lines of code. However, it is also a contradictory fact that without human interference, systems turn to chaos, and failure proceeds.
We can also try to understand this human interference as a bridge between the world of decentralization and centralization. However, such bridge should not be considered a centralized being, but instead, an organization that is for the community, and by the community.
Here comes DAO.
DAO collaborates with “The Coded Law” and humanely deals with all matters that are in dispute and controversy within a protocol. It can make sure all decisions made within a certain protocol are:
As an effective, neutral way of collaboration
DAO reproduces a Web2 organization in a Web3 fashion. Acting as a link between individuals and stakeholders, empowering protocols in a decentralized way. DAO must be seen as a more effective way of collaboration, where major stakeholders and users can join forces.
Trace back to the fundamentals
Web3 & DAO will eventually, be traced back to the fundamental logic of product design: market demands and user preference. Web3 is a sector that’s merely known by the general public, it will thrive to draw more attention from the web2 space, but meanwhile, inherit many fundamental logic from web2 as well.
A public-owned protocol that “employs”
Moving into web3, the traditional employment relationship is nowhere to be found, instead, DAO can be implemented by gathering people together and “employ” them in a web3 fashion: by a smart contract. Reward mechanism set by “The coded law” and governance farming guarantees the right motivation.
DAO gathers people, not by an “employment contract”, but through smart contracts & digital proposals.
As mentioned above, DAO is a consequential form of stakeholding in the world of web3 & blockchain. It may use the fundamental logic of financial incentives to reward and gather people with common interests, which eventually form a positive feedback cycle within a protocol.
P12 aims to do the same, with our Meritocracy mechanism.
Among all P12 tokens, 60% will be distributed to reward quality & positive behavior within the P12’s ecosystem. Meritocracy is an important feature that promotes a sustainable economical environment within the platform, rewards will be measured in multi-dimension that reflect the user’s contribution and positive behavior.
DAO, using the leverage of digital proposal and decentralization, can therefore ensure the mutuality of stakeholder’s benefit without the interference of an over-weighted decision power (See the case of Uber and WeWork).
In P12, we are here to do just that.