A decade of latent and explosive: The DAO you didn’t know

DAO began to bloom all over the world this year. The initial version has not yet been clearly seen. New DAO projects have arrived. From DeFi to DeFi DAO, from public chain to co-construction, DAO seems to reshape the game of the entire industry in a subversive situation. rule. This time, we will re-organize several important development stages of DAO and its core characteristics at each stage, and have a preliminary reference for us to judge the next trend of DAO and possible innovations.

Thought Experiment Proposed – Successful Demonstration of Invisible DAO Giant Bitcoin

DAO (Decentralized Autonomous Organization), literally translated as a distributed autonomous organization, is a kind of organization that encodes the management and operation rules of the organization in the form of “smart contracts” on the blockchain, so that it can be autonomous without centralized control or third-party intervention. Organizational form of operation. According to reports available on the Internet, the original idea was proposed by Bitcoin contributor Mike Hearn, who described it as a decentralized organization scenario that would ideally be leaderless in 30 years.

Judging from the current practice results and development situation, Bitcoin that appeared at that time was already the greatest and successful case of DAO practice. Under the leadership of the technical framework, global participants jointly maintained the Bitcoin distributed ledger and successfully operated it. to date. However, this great success has not been reproduced in subsequent cases, and it is difficult for a project to match the huge network autonomy built by Bitcoin.

Enlightenment – BitShares

Before 2017, Bitcoin, a model of blockchain, was not popular, let alone a new concept like DAO, and there was nothing good about the development of DAO-like infrastructure. In 2014, Daniel Larimer, the former CTO of Block.one, launched BitShares and implemented it on the EOS.IO public chain. This BitShares was used to realize the Bitcoin extension protocol of an ideal free market financial system, creating a new name. A financial product for polymorphic digital assets, designed to help everyone become an exchange. To put it simply, BitShares is meant to create more Bitcoin replicas. However, such a design still shows centralized characteristics in the subsequent development. In the 4.0 version upgrade, the core developers of BitShares changed the voting rules without the consent of the community, causing widespread dissatisfaction in the community, thinking that it is not only centralized, but also new rules. Too tough.

During this period also Dash, Digix, and most famous and sensational The DAO. At that time, DAO was highly praised by Buterin V. He was very firm in mentioning that as long as it had a Turing-complete platform smart contract, it could support a distributed autonomous organization free from human interference. The DAO is a practitioner of the Turing-complete platform based on Ethereum, and has created an unprecedented huge amount of crowdfunding in one fell swoop. By locking the raised funds in the Ethereum smart contract, and obtaining the corresponding DAO tokens according to the amount contributed by the crowdfunders, and the participants simultaneously have the right to invest in project proposals and vote on governance, all decisions will be made based on the decisions of many people. Wisdom then makes a better conclusion than a certain expert or leader, and initially realizes the so-called “wisdom” and autonomy. At this time, the management model of DAO has initially entered the “governance of the masses”, rather than the “arbitrary dictatorship” in the centralized system.

Unfortunately, The DAO didn’t last long. Due to a technical loophole in the smart contract, the hacker stole the crowdfunding fund naked, making it a fatal blow. Although Ethereum finally returned the stolen funds by implementing a hard fork, the project was unable to recover, and it quickly fell from the altar in three months. The intertwining of joys and sorrows just reflects the lack of DAO technology, and the consideration standards at that time were often linked to the amount raised or volume production, making it difficult for DAO builders to harvest long-tail value and create more value depressions.

Continuation – long exploration

The introduction of distributed autonomous organizations from Wikipedia ended abruptly in The DAO in 2016, and did not lay out and introduce the development in recent years. Obviously, in the four years after The Dao, the entire industry has pressed the slowdown button, and decentralized autonomous organizations seem to gradually drift out of our sight. However, if it is put into the present review, the DAO did not stop during the quiet period of those few years, but continued to explore and develop in the bear market, which precisely reflects the same situation of the entire industry. It can be said that in the mixed emotions of confusion and hope, everything is out of sight, and everything is galloping. Based on a long period of dormancy, the performance of the public chain is getting better and better, and it is more capable of supporting the creation of more DAO applications, which lays the foundation for welcoming the “spring” of DAO.

Accumulation – Uprising and New Rules of the Game

Time has come to the summer of DeFi in 2020, and it is also in this year that the entire circle has ushered in new machines, including DAO. But we also found an interesting phenomenon. Baidu searches for DAO, and you will find that most of the pop-up results focus on “What is DAO?”, which also indirectly shows that DAO, which has been developed for more than ten years, is not well known and is still in popular science. and user education stage. From the overall situation of the market, DAO has already emerged relatively well-known projects, such as the more popular MakerDAO protocol in DeFi, but under the heat, people more and more regard it as the benchmark of DeFi projects, and ignore it. The essence of the DAO project.

A decade of latent and explosive: The DAO you didn't know

Entering 2021, the signs of the DAO outbreak are looming. In March, the Wyoming Senate committee formally voted to pass the DAO Act, which would allow limited liability companies to transform into DAOs, which will go into effect in July. At the end of the year, the popularity of DAO became stronger and stronger, and Sequoia Capital once changed its Twitter to “We help courageous people to create a legendary DAO, from ideas to token airdrops. LFG.” Aroused huge attention. In the Messari 2022 forecast report, it mentioned that DAO is an organizational model of collaboration among individuals, and a form of economic cooperation in pursuit of efficiency. DAO is not only a community vote, but also the transformation of various things and company models in the future. It is pointed out that the development space of DAO may be more imaginative than NFT.

The era of DAO for everything has come, and popular DAO projects in the circle have sprung up like mushrooms after a rain. For example, OpenDAO, which was popular during the New Year’s Day holiday in 2022, the auction of the creation rights of Merge shared by 29,000 collectors, and in addition to DAO organizations purely serving the development of protocols and projects, such as venture capital DAO organizations The LAO, Flanmingo, etc., media DAO organizations Bankless DAO, GCR, etc., funding DAO organizations Uniswap Grant, Aave Grant, etc., collection DAO organizations, etc.

The analysis believes that the rise of this DAO wave has made the landing direction diversified and innovative, but the internal gameplay of the project is still single and similar, and it can only be used as a stage for the emergence of a bubble again. The good effect is that more and more projects are beginning to defend their rights through DAO, or by gathering more tiny forces to create possibilities that were not dared to try before, and get due incentive rewards for participation. The essence of DAO’s explosion is that more and more tiny producers have seen the innovation and changes brought about by decentralized technology, and more organizations and people have poured in to create, and there are new technologies such as cross-chain, VR, and privacy computing. , games, metaverse, NFT and other technologies and industries that can leverage each other, and can continue to be connected and utilized in a crisscross pattern. In short, as a product of the development of the blockchain industry to a certain stage, the ultimate goal of DAO is to move towards complete autonomy, coordination and decentralization, and such exploration will take more time.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/a-decade-of-latent-and-explosive-the-dao-you-didnt-know/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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