A Tesla without Elon Musk.
A Facebook without Mark Zuckerberg.
An Amazon without Jeff Bezos.
Can you imagine these companies without their iconic leaders?
I DAO(t) it 😂
A DAO is a decentralized autonomous organization. It's like a regular organization but instead of being run by a central leader, it's run by its community of users.
Decisions are made through proposals that the community votes on.
No more selfish CEOs that act recklessly or CFOs that manipulate the books.
DAOs work because of "smart contracts".
These are programs that are written into code on the blockchain. They are automatically executed based on rules and logic.
Once these go live, no one can change them change them unless by voting.
For example, smart contracts determine how money is spent. So even treasury is decided by the community. No central leader.
By owning tokens or shares in the organization, you gain voting powers.
One DAO was hacked and $60 million was stolen because of an error in their code. They were slow to fix it because they needed the community to discuss and vote.
Dash - Instant payment and private transactions
MakerDAO - Decentralized lending network
Uniswap - Decentralized finance protocol
The DAO - Famous decentralized autonomous organization that was hacked
What do DAOs need to operate better? Token-based fundraising. Voting infrastructure. Smart contract code auditing. We are in the early stages of decentralized organizations and they will evolve.
There are opportunities for startups or non-profits to try using the decentralized model. There may be advantages in fundraising using a token-based system.
You don't have to make your entire company decentralized. There may be certain elements you want to use. Smart contracts may be a good way to execute actions automatically. Or maybe some people are given voting power through tokens/shares.