DAO is one of the hottest blockchain concepts in 2019. Furthermore, some people predict that there will be more DAOs than Tokens in the future, which will be the new outlet of the blockchain. It is necessary to understand this new outlet and popular concepts, gain insights, and get entrepreneurial or investment inspiration.
What is DAO?
DAO is the English abbreviation of Distributed Autonomous Organization, which is "Decentralized Autonomous Organization". Sometimes it is also called DAC, which is "Decentralized Autonomous Corporation".
According to Wikipedia, the definition of DAO is "an organization represented by open and transparent computer code, and its financial transaction records and program rules are stored on the blockchain." The more well-known DAOs include The DAO, MOSDAO, and MakerDAO. , DashDAO, etc.
How was DAO born?
DAO is not a completely new concept. Self-organizing phenomena in nature, cyber movement organizations (CMOs) in the Internet, and distributed artificial intelligence (DAI), an important branch of artificial intelligence, can be used. It is considered to be the embryonic form of DAO, and these have laid a theoretical and realistic foundation for its appearance.
The real implementation of the DAO concept benefits from the advent of blockchain technology. DAO, as the ideal result of the blockchain and encryption technology revolution, originally originated from the theme of decentralized organization mentioned by Ori Brafman in TheStarfishandtheSpider and the "peerproduction" proposed by YochaiBenkler at The WealthofNetworks.
In 2013, Daniel Larimer first proposed a concept similar to DAO-decentralized autonomous organization (DAC). The difference between DAC and traditional enterprises is decentralized and distributed.
In 2014 Daniel Larimer replenished the concept of DAC. Later, Vitalik expounded his understanding of DAC and inspired DAO in the context of blockchain, inspired by Daniel Suarez's book Daemon.
In 2015, the concept of DAO was first officially proposed in a smart contract called DAO on the Ethereum blockchain. DAOs at this time are smart contracts, technical frameworks, and tools that are often understood as self-organizing similar to nonprofit organizations. Smart contracts, similar to traditional ones, are simply contracts that run on a blockchain network and are executed automatically by computer code.
In 2016, the first DAO, The DAO, was developed and became the largest crowdfunding project in the world at that time. After popularizing the development of the DAO concept, let me introduce to you, what is the main use of the current DAO?
What problems can DAO solve?
According to statistics, there are currently more than 50 DAOs. In addition to the well-known Bitcoin DAO and DashDAO, there are other emerging DAOs. Let me briefly introduce several typical DAO concepts and applications.
In 2016, The DAO mainly used DAO to solve the problem of token holders voting to determine the allocation of proposal funds and the distribution of proposal returns. Voters who participate in voting will be rewarded for successful projects and the appreciation of these tokens as they may generate more returns.
In 2017, MakerDAO aims to manage the operation of its stablecoin Dai through DAO. Mainly through DAO to solve the configuration of the entire system and trigger emergency shutdown issues, such as the type of mortgage debt warehouse, the price of collateral and so on. Voters participate in voting because when the DAI system runs well, it will increase the value of MKR, and thus gain benefits. Similar to DAO, there is Dash DAO.
Aragon and DAO stakes help others create DAOs. For example, in Aragon DAO, you can assign a stake to a set of initial members, you can vote to join new members, vote to release funds from the DAO, or vote non-bindingly on anything.
Launched in February 2019, MolochDAO mainly solves the ubiquitous Moloch problem through DAO, that is, the problem that individual incentives do not match the global optimal result. In essence, it solves the problem of fair distribution of rewards by individual members in the organization.
Launched in August 2019, MOSDAO aims to enable the community to manage the world's first token DAO issuance platform, MOSDAO. Through DAO, make the operation of crypto asset issuance and fundraising more transparent and fair, thereby helping issuers save costs and help investors reduce costs. risk. For example, distribution of token sales reward ratio, quantity, etc. through DAO.
From the above, it is not difficult to see that in addition to the Aragon and DAO stakes that created the DAO organization, other projects use DAO to solve the problems of fund allocation management and individual contribution awards in a certain field, so that team members can collaborate more efficiently, democratic and transparent To achieve a common goal. Therefore, on the surface, DAO is a technical tool, and in essence, human organizational activities solve the problems of collaborative communication and benefit distribution within the organization, thereby improving the transparency, flatness, and efficiency of organizational operations.
Seeing this, one might ask how these DAO projects are developing? The market value of DashDAO and Maker DAO is currently in the top 30 of the market software. If you also want to use DAO as your own venture investment direction, and want to send a DAO in one click, you can choose Aragon and DAO stake. If you want to pay attention to and invest in more DAO projects, and want to issue Tokens through DAO in one click, you can choose MOSDAO.