DAO is devouring B2B

In the last issue of “The Thirteen Flavors of DAO”, Daivd introduced us to 13 foreseeable application scenarios of DAO. Among them, Daivd mentioned the interactive scene of the DAO network and the “package of currencies” in the DAO fund. In this issue, Chase Chapman brings us a detailed interpretation of the DAO network and the “package of currencies”. We can regard the similar thinking proposed by Chase and Daivd as a coincidence, but I believe that this is the consensus of these DAO practitioners on the future thinking, or an inevitable harbinger of the shaping of the trend. Perhaps today, we will still feel a little absurd when we see these thoughts or assumptions. It doesn’t matter, we will be waiting for you in the future.

—— Typto

As DAOs grow stronger, they will swallow more B2B markets. But B2D is a failed method. The dominance of the D2D strategy may force B2B companies to become DAOs. And it may happen faster than you think.

Fund reserves are being built

DAOs know very well that the next few years may not be smooth sailing. People are trying to accumulate funds for long-term development. However, many DAOs still hold their own governance tokens, which account for a large proportion of the treasury.

Diversification of treasury becomes important

In order to hedge the fluctuations of the DAO’s own governance tokens, they need to diversify their investment. Changing the treasury Token into a stable currency is one way. But this requires raising funds (whether from the community or venture capital) or selling to the open market.

D2D Token swap can become an effective choice for treasury diversification

Exchanging tokens with other DAOs is a win-win strategy (in financial terms). Both DAOs are winners because they can diversify their treasury + avoid the pressure of token sales/discount.

But in practice, D2D Token exchange is not the best choice. Why? Because they are pure financial means. A better approach is to exchange value between DAOs that *work together to some extent*. Both DAOs have a vested interest (and beyond economic interest) in the success of the other.

DAOs introduce a model in which ownership and governance are democratized and distributed among stakeholders. In order to win, DAOs need stakeholders, and these stakeholders are not only motivated by the Token price. The vested interest among the partners is a step in the right direction.

This is where the agreement/product/service DAOs appear. Suppose you are a DAO and the treasury is filled with your own governance Token + you need to buy things (products, services, etc.). Who should you choose as the supplier? Those DAOs that will accept your governance Token as a payment method!

The supplier DAO accepts the governance Token as the payment method:

1. Diversify their funds

2. Seize the upside of the communities they serve

3. Obtain governance rights in an ecosystem where they have vested interests

By exchanging value in this way, DAOs are actually performing Token exchanges efficiently. As the interests are aligned, both parties will benefit.

Both parties in the exchange got:

1. Share the upside in the success of the other party

2. Governance power in the communities they depend on/care about

Let’s imagine a world where every supplier that DAO works with them does this. If you are a web2 company that serves DAOs, you are at a disadvantage. The benefits of operating as a DAO (rather than a company) are much greater. D2D is the dominant strategy.

Therefore, we may see that companies that currently serve DAOs themselves have become DAOs. As DAOs grow stronger and merge more B2B markets, this trend may continue to drive a large number of companies to transform into DAOs.

This article also has many assumptions-this logic does not apply to all companies and DAOs. But this is not a new phenomenon-these assumptions have also worked in cooperatives. In isolation, individual cooperatives are more likely to fail, while cooperative networks are often more likely to succeed.

We are still so immature, and there are many unresolved things at present. But the macro trend is that more and more companies are transitioning to DAOs (for various reasons). The dominance of D2D strategy may accelerate this trend, and much faster than we thought.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/dao-is-devouring-b2b/
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