Many people have heard of this notion: DAO. But what is DAO, MoonDAO introduction, and what makes MoonDAO distinguished above all. In this article, we aim to give readers a thorough introduction.
What is DAO?
DAO is the acronym for Decentralized Autonomous Organization. A DAO is formed when a multitude of people are organized into a web3 collective in pursuit of a well-defined goal. DAOs are increasingly becoming a popular use case of blockchain technology in fundraising, finance, philanthropy, investment, asset management, acquisition of blue chip NFTs, Web 3 projects, social activism, etc.
Although DAOs are pretty much similar to traditional companies, they differ in technology, scope, jurisdiction, management and philosophy. For example, a DAO is decentralized--governance running on blockchain codes and trying to minimize or even abolish central authority--while a company is a centralized entity with a chain of command and subject to the various traditional laws of states on incorporation, taxation, bankruptcy, winding-up and employment, etc, which to some extent, guarantees market order, but hinders innovation.
Besides, a DAO is usually global in scope and has a wider reach, whereas most companies usually tend to fall within a country’s geographical space and economy. This particular distinction is why the defunct ConstitutionDAO, for example, was able to receive $47 million in funding from 17,000 people across the globe in a stretch of six days on Ethereum-based crypto funding platform, JuiceBox. Indeed, it achieved this feat as a DAO and not as a company in a bid to purchase an original copy of the US constitution.
In terms of its membership, crypto tokens are to DAOs what shares or stocks are to traditional companies(LLCs, C-Corps etc) . A DAO’s token pretty much operates like a company’s stock since it basically confers membership and a bundle of rights on its holders. But it has a more broader use than a company’s share as a result of the voting power it grants every member of a DAO regardless of the amount of tokens he or she can afford.
How DAOs operate
DAOs operate a bottom-up governance model on blockchain-- which is their underlying technology--for a range of purposes including security, public access to financial records, treasury management and transparency. No major changes to their structures can be effected without them being voted upon by an overwhelming majority of the investors. This is essentially because smart contracts, basically underline how DAOs work. They are rules embedded into how they are organized and they help them to function autonomously without the need for a centralized authority.
MoonDAO: an overview
At the core of MoonDAO’s founding lies its ambition to decentralize access to space. Its roadmap includes purchasing space tickets, launching an NFT space ticket, flying to outer space aboard Blue Origin’s New Shepard, establishing a colony in space, collaborating with leading space agencies and research organizations, and launching ambitious space projects. In addition, it seeks to set up its own manufacturing plant for space rockets in the near future.
It has a talent pool of seasoned contributors who are divided into different workstreams and who are eligible to receive compensations and bounties at the end of each working phase or period.
What makes MoonDAO different?
MoonDAO is distinguished in goal orientation, project&guild system, incentive structure,etc.
Take incentive structure for example. To achieve true decentralization, MoonDAO took the road less traveled by opting for a retroactive compensation plan in respect of its early contributors.
And MoonDAO adopts Coordinape for mutual evaluation in a decentralized and fair way. The key-point about the distribution pattern is to exercise some discretion over the allocation of points to other contributors who are selected by a team member or contributor.
Conclusion
DAOs have come to represent a new organization model.
DAO is the space to watch in crypto and web 3 as more and more ambitious projects like MoonDAO continue to spring up. A DAO holds a lot of potential for impacting the world as we know it: from animal welfare to environmental protection to social justice.
MoonDAO, for example, is set to become the first DAO to send humans into outer space. Its ambition, in the long term, is to decentralize access to space by helping millions of people around the world to inch closer to their dream of traveling to space in a lifetime.
(Author: OlaPhsix; Editor-in-chief: CarolW)