What is DAO? What is the most talked about and promising DAO system in the crypto world lately? How does it work? What does it do?
A brand new working model enters our lives with DAO, that is, Decentralized Autonomous Organizations. In today’s work systems, the employer-employee relationship, which is one of the main backbones of capitalist systems, has begun to take on a structure that prevents the personal space and existence of the individual. That’s why DAOs were born and sprouted in the ecosystem to offer business systems, governance models, life systems that seek to elevate people and the community at their heart.
Apart from the philosophical aspect of the work, of course, there is also a technological dimension. At a basic level, DAOs are community-driven, autonomous structures built on the blockchain for a vision and purpose through specific rules (which can be thought of as internet-specific laws). Blockchain and smart contract technology are one of the main factors that ensure and ensure that these structures become the governance and working model of the future.
The DAO first started on Ethereum in April 2016 as a decentralized venture capital fund. DAOs have a democratic structure in which the management is provided entirely by the decisions of the community, adopts community ownership and provides the functioning processes through fully autonomous structures. Probably anything a company does, the DAO will do much better. DAOs are experimental at the moment, just like cryptocurrencies, smart contracts, NFTs, and DeFi’s first few years. When communities discover how high and easy the DAO’s self-organizing power is, the companies that formed with the DAO will likely be as familiar to you as Twitter and Google.
DAOs are much more efficient than traditional business structures because their decision-making processes are completely transparent and automated. Without an inclusive authority figure, the DAO empowers everyone operating in its community because it puts power in the hands of the community that built it.
Current Status of DAOs
We are just at the beginning of this revolutionary infrastructure. Ideas about DAOs and their management mechanisms have been around for a long time, but we are only just beginning to experience the proliferation of these organizations. Alongside the growth of tech-focused DAOs, we’ve been experiencing the rise of a more diverse, socially-focused approach lately.
Although it is difficult to separate these two different segments with sharp lines, with the fact that DAOs exist within a decentralized and autonomous spectrum, socially oriented DAOs are also designed to bring people together, to find different ways to interact, to unite and to gather. has.
Examples of this type of DAO are collectives and pseudo-anonymous groups such as those that manage funds, share a passion for artists and NFTs (PleaserDAO), and even form media, social and cultural DAOs (BanklessDAO — FWB- The DAOist).
In this sense, contemporary DAOs; It can be said that there are communities of people who decide to unite their common interests, ideas and visions and devote their time to creating (open, transparent and decentralized) organizations based on the values of the blockchain world.
While everything seems to be moving into a new era in terms of the structure, functionality, and products of a modern DAO, one thing we can say for sure — the types of social organizations, the degree of innovation and creativity, the “new ways to relate to one another” that Decentralized Autonomous Organizations unlock. ” here and they are here to revolutionize our world!