The future of on-chain governance

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Decentralized governance is one aspect of Decentralized Autonomous Organization (DAO), perhaps the most valuable application that smart contracts can bring to mankind. DAO can be regarded as a living organism on the Internet, an entity that can operate autonomously according to a distributed consensus mechanism.

DAO is managed by the community through voting and is an autonomous system with a built-in fund management system. Although they still rely on community members to complete certain tasks-obtain financial benefits from the liquidity pool in return-DAO is almost completely automated.

Despite its potential, DAO is not among the most popular decentralized technologies.Since 2016, their reputation may not be fully restored Hacker: The first decentralized venture capital fund (called “DAO”) was destroyed, leading to the fork of the Ethereum blockchain and subsequent creation of Ethereum Classic (and many more).

However, what many people may not know is that the various income agriculture agreements we see today, irreplaceable token platforms and decentralized exchanges all rely on DAO for governance. In the next few decades, a new generation of autonomous organizations is likely to take over decentralized parties, not only in the commercial field, but also in the political field.

related: Decentralized technology can help protect global democracy

DAO: A little background

Dispersion is measured on the frequency spectrum. Some top commentators recommend decentralized management of Bitcoin (Bitcoin) Alone is enough to be regarded as a DAO.However, the term is not formal Bring in It was not realized until 2013 by Daniel Larimer (Daniel Larimer), a few years later sprint.

Dash is one of the most active DAOs today, and the first protocol to establish decision-making on top of the blockchain consensus protocol. As early as 2015, the Dash Foundation decided to create a fund pool consisting of 10% mining rewards to promote the development of the network.

Although there are many forms of decentralized governance, DAO is mainly used to vote on protocol upgrades and the allocation of pool funds. They have yet to get out of the cryptocurrency bubble and have changed the decision-making process in the real world. This is where the real potential of the DAO lies. It not only makes democracy fairer, but also more flexible and effective.

Last month, Wyoming passed a groundbreaking new law that effectively Recognize DAO is a limited liability company (LLC). As regulations catch up with technology, we may see these LLC DAOs gradually introduce decentralization into enterprises and organizations.

Destroy the political system

Political decentralization is the only way for citizens to have a clear voice in the management of their communities and lives.The desire for change in the political landscape is obvious and is reflected in Grow Voters in many countries were absent. Although decentralized parties will initially lack political influence, over time, the desire for technological power and purer forms of democracy will stimulate their adoption.

Eliminating the central authority will help protect citizens from excessive government control and corruption, reduce bureaucracy, and increase the speed of passing laws and policies.

We can use blockchain technology to help improve the voting process. The blockchain voting system is currently being tested in many countries/regions around the world and has been used in the United States: West Virginia in the 2018 midterm elections And in Utah during the 2020 presidential election election.

related: Blockchain voting is an alternative to trusted democratic elections

Is decentralization the future?

But what if distributed ledger technology can not only improve the voting system, but also do more? What if they can take democracy to a new level and build an autonomous system in which everyone has a say?

This is the potential potential of decentralized parties: to overthrow the hierarchical structure and bring a paradigm shift to the political system.

The views, thoughts and opinions expressed in this article are only the personal views of the author, and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Andrey Sergeenkov An independent researcher, analyst and writer in the field of cryptocurrency. As a staunch supporter of blockchain technology and a decentralized world, he believes that the world is eager to achieve such decentralization in government, society and enterprises. He is the founder of independent media BTC Peers.