Decentralized Autonomous Organizations or DAOs encompass a major role as rollups of individual efforts combined into communities that can essentially do anything and everything within the context of allowing each other to be compensated for the efforts of desired growth in sense of identifying a need; any need, and filling it; independent of product, service, industry, or market.
DAOs are an effective and safe way to work with like-minded individuals around the globe.
A DAO is like an internet native business that’s collectively owned and managed by its members. DAOs have built-in treasuries that no one has the authority to access without the approval of the group. Decisions are governed by proposals and voting to ensure everyone in the organization has a voice.
There’s no CEO who can authorize spending based on their own whims and no chance of a dodgy CFO manipulating the books. Everything is out in the open and the rules around spending are baked into the DAO via its code.
It’s an entity that has no leader, but a shared interest.
For instance, within a DAO, the founders of its entity determine what assets the entity invests in. And technology will enable those investments to happen automatically as investors contribute funds. Earlier we have seen the bid on one of the 13 surviving copies of the original print of the U.S. Constitution. That’s the power of a DAO.
Further, we can see communities and smart cities develop with DAOs such as that of CityDAO reference where anyone is able to buy land all over the US and world. From their development we can see that they are starting in Wyoming because of the state’s new DAO law, which recognizes DAO governance of LLC corporations. Because LLCs can own land, this creates a powerful pathway for decentralized land ownership.
Metaverses with similar characteristics and land structures utilize DAOs in the same aspect as we can imagine IRL.
And here’s the scoop, anyone who wants to participate in one of these DAOs will be free to do so. There are no restrictions and no investment minimums. Then, whenever profits are taken, the DAO will automatically distribute them to each investor on a prorated basis.
It’s exciting to see companies building the fundamental protocols that enable decentralized, democratized investing. It will empower anyone or any group of people to establish an investment vehicle that enables groups of people to band together and decide how to allocate those funds.
There are DAOs that require membership fees which come with membership perks, and some have their own native tokens to stimulate the evolution, development, and progress of their organizations.
I’d like to refer to the wheel analogy; when it was first invented, obviously the wheel is round. It doesn’t matter what color the wheel is, or what material it is made out of, also, the size of the wheel isn’t important for what it initially does. It will always be round and do what it’s meant to do. It’s the same social structure and mechanism that enables the mindset of decentralization.
With all the advancements happening we are still far away from where we ought to be. Behavioral advancements need to correlate with scientific technological advancements to ensure smooth transitions as we all grow as a civilization. We need to use and harness more energy to become a Type I civilization, which will take decades.
DAOs are governed by smart contracts (collections of computer code) that define the DAO’s operating rules.
To help this make more sense, here are a few examples of how DAOs are used:
- Charities / you can accept membership and donations from anyone in the world and the group can decide how they want to spend donations.
- Freelancer networks / you could create a network of contractors who pool their funds for office spaces, and/or software subscriptions.
- Ventures and grants / you could create a venture fund that pools investment capital and votes on ventures to back. Repaid money could later be redistributed among DAO members.
DAOs or Decentralized Autonomous Organizations are ready to replace many traditional organizations, and they are able to.
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