Is Decentralized Autonomous Organization (DAO) the future?

The ideology of crypto utopia is through the development of an organization that eliminates flaws on a global scale Blockchain technology-Model-based from scratch.Initially, the visualization Cryptocurrency Not an asset, but an alternative payment gateway. The smart contract proposed by the blockchain attempts to establish a reliable form of legal governance.Combining the two to develop a reliable, efficient and safe financial system is Go to financial institution (Decentralized finance). However, DOA is a re-conceptualized on-chain design of traditional operations. Stan Larimer was originally the creator of the DAC (Digital Autonomous Company) concept, and was later reconstructed as DAO (Digital Autonomous Organization) by Vitalik Buterin, the founder of Ethereum.

Decentralized network architecture is one of the main attributes of digital currency. The decentralized network is not controlled by a single entity, but by a group of participants. A peer-to-peer network in which each node acts as a participant and regulates the functions of the network. Usually, digital currency deploys a decentralized position to achieve high-end security and privacy, which is usually not available in conventional currency transactions.

Decentralized Autonomous Organization: Overview

A sort of Decentralized autonomous organization It is an organization represented by a protocol encrypted as a transparent computer program, under the management of the members of the organization, not affected by a single entity (such as the central government), sometimes called DAC.

Decentralized autonomous organizations are characterized by applying blockchain innovations to provide a secure digital ledger, which is used to monitor digital exchanges on the network, and to consolidate and prevent fraud through the spread of trusted timestamps and distributed databases. This approach eliminates any form of decentralized digital interaction or the participation of trusted intermediaries that are acceptable in cryptocurrency transactions.

Due to the withdrawal of intermediaries and the need to repeatedly record contract exchanges in various records, the tariffs of blockchain transactions and the corresponding data reports are essentially equal. For example, if permitted by regulatory agencies, blockchain data can replace public documents such as contracts and ownership. Therefore, theoretically, blockchain technology enables many cloud computing participants to get involved in loosely related peer-to-peer smart contract collaboration.

DAO It is a venture capital fund based on open source code without a unique management structure.

DAO you need to know

It has been suggested that patents, copywriting, news accumulation, voting certification, advertising, and next-generation search engines are all upcoming DOA model candidates. Therefore, in the most advanced ideal model of cryptography, all organizations will eventually adopt the DAO model.

After the initial collapse of the venture capital fund “The DOA” in 2016, this idea is still struggling and trying to prove its value. But at present, this seems to be protracted in the future.

In addition to pseudo DAO organizations (that is, groups of crypto investors who wish to allocate percentages of assets and decisions), more and more real DAOs are beginning to receive attention.

Here, we will discuss some DAOs that have caught our attention, there are more aspiring people, and perhaps more people are approaching.

• Uniswap
• Phoenix Road
• MetaCartel Venture Capital Company
• JennyDAO
• MakerDAO
• No bank DAO

Uniswap

One of the most successful applications of the DAO concept is UniswapIn other words, take the traditional underlying system that is the basis of foreign exchange transactions-the order book-and update it with the same effective blockchain, if not better. The achievements of the DAO model can be evaluated by comparing Uniswap with its competitor Coinbase, which still uses the traditional order book method.

The main innovation is the combination of the liquidity pool concept and the automated market maker (AMM). This combination allows investors to trade their assets by eliminating the requirements of intermediaries. This is because an algorithm can ensure that prices are relatively regulated.

Management rule set allows automated transactions between encrypted tokens on Ethereum Blockchain platform Through the use of smart contracts. Therefore, the efforts of robots and humans are combined, robots accept tasks such as automatic liquidation, and the market has undergone unexpected changes.

Phoenix Road

Developing a real DAO is a tedious task. It requires a professional development team to create an autonomous main nervous system to resist fragile threats and built-in logical flaws.

PhoenixDAO is a transformation of Hydrogen, a decentralized financial ecosystem. Unfortunately, the original plan did not succeed, as if it was due to member complaints. In addition, the original idea violated the agreement of the decentralized system and lacked safeguards to save your foreign exchange dumping through the means of important coin owners.

The newly disclosed ecosystem coin PHNX consists of a set of optimized protocols to deal with unique objections. The “team” section of the website only contains directors who are responsible for vertical areas such as partnerships and communications.

MetaCartel Venture Capital Company

MetaCartel Ventures is a non-profit DAO whose goal is to support and fund projects aimed at improving usability or demonstrating new Web 3.0 use cases. The project proved that there was no centralized marketing team involved in web design.

according to Meta cartel, “Regulations and laws” are combined to govern the organization. DAO members, known as Mages, are responsible for executing tasks that smart contracts cannot accomplish: implementing DD, emerging investment ideas, and advocating financing ideas.

They also authorize the addition of new members as a measure to avoid violating the decentralized system protocol. However, leaving the group does not require authorization and is executed by the AI ​​protocol. The entire share of DAO assets will be awarded to the exiting members.

JennyDAO

JennyDAO’s slogan is “Democratize NFT”.

The Unicly protocol manages JennyDAO’s central AI, which shards NFT assets and controls the cryptocurrency composed of the organization’s NFT portfolio. If the voting members reach the positive threshold, the agreement will release the treasury and sell the NFT. Even if the Unicly protocol controls things, human token holders still need to fulfill their share.

For example: Evaluate the price of the NFT considered for purchase. Their returns are very similar to those of asset holders in standard investment funds, except that everyone dynamically participates in the DAO model.

MakerDAO

along with UniswapMakerDAO is one of the founding institutions of the new DeFi currency system. Although Uniswap makes it feasible to exchange cryptocurrencies without the need for beneficiaries, MakerDAO allows participants to borrow in a way that reflects everyday banks.

The loan and borrowing aspects of formal banks are determined by a certain political process, involving many internal departments to negotiate the spread between loans and deposits.

The smart contract is responsible for managing the lending process in MakerDAO. The pairing of cryptocurrency and Dai stablecoin provides cryptocurrency investors with an opportunity to borrow tokens and predict the amount of return.

Surprisingly, MakerDAO has achieved a complete cycle in terms of decentralization. Although it was originally a small decentralized operation, a “pure” DAO, the sudden surge led to the addition of an authority layer at the top to help deal with the new challenges of large-scale operations.

The developers recently assured that MakerDAO will once again become a fully decentralized structure.

No bank DAO

As the organizer of the Bankless movement, DAO is moving towards the future with greater freedom. With the support of the world’s first media and culture, Bankless DAO’s mission is to lead the world towards non-banking by developing a user-friendly interface and exploring decentralized financial technology through media, culture and education.

The sponsor of BanklessDAO currently proposes that its employees create 250,000 new Bank tokens in exchange for capital injection, and realize the start-up plan by creating additional goods and additional labor. The term labor refers to designers, builders, content creators, and others who manage such projects. It is more like a public offering, and there is hardly any difference between private and public in the cryptocurrency world.

The future of DAO

More and more Ethereum Proponents believe that DAO can be the future of work, human organizations, and cultural communities. Therefore, some people believe that DAOs like DeFi and NFT should achieve mainstream breakthroughs before them.

For example: consider a vending machine that requires manual operation. Finding technical defects, paying electricity bills, collecting money, and reloading more products all require labor. Only when the machine is a DAO can human-computer interaction be reduced or eliminated.

This mechanism may be able to transfer records to a server, and then an automated system that can perform operations previously performed by humans.

The DAO will replace the CEO’s decision-making, boundary meetings, and daily operations in the organization, thereby avoiding additional meaningless work. In addition, shareholder voting can be conducted through tokens.

In addition, DAOs can use the power of token economics to change the recruitment process, salary decisions, or hiring developers.

To better understand the future scope of DAOs, let us delve into some of the benefits they provide.

• Trust and safety: DAO ensures security and does not require trust. If the developer can no longer continue to work on the project, the system will continue to run, and new developers will be assigned through the voting system.

• Continuous function: Another benefit provided by DAO is that their functions cannot be turned off. No authority or financial entity can close the DAO unless they have a large number of tokens and submit a vote. Even so, for such a proposal, it will be a troublesome task for the authorized parties to reach a consensus.

• Open source ecosystem: Finally, DAO is an open source ecosystem, which means anyone can optimize code. Generally, open source systems are more reliable because programmers can help developers find code errors and propose appropriate repair measures.

in conclusion

Continuous innovation has become an indispensable part of the digital world. Like any other innovative system, DAO reflects continuous improvement. Since every technology or concept has its advantages and disadvantages, so does the open source ecosystem. However, in every economic field, DAO can solve the infinite opportunities to disrupt the simulation structure, which can delay the process due to unnecessary management.

Although DAO is still in its infancy and trying to consolidate its foundations, it is clear that the core part of the DAO revolution will continue to exist. Therefore, it will be very interesting to witness its growth peak.