Three minutes to take you to understand the characteristics, advantages and how to participate in DAO

Recently, DAO organizations of various sizes, including Constitution DAO and Assange DAO, have emerged, and some non-profit organizations, game guilds, and DeFi governance have DAOs behind them.

About DAO, we have done a detailed introduction in the previous article.

Today, we will continue to talk about this topic, talk about the characteristics, advantages of DAO and how to participate in DAO?

Features of DAOs

1. There is no central node and hierarchical management structure in distributed and decentralized DAO. It achieves organizational goals through interaction, competition and collaboration between bottom-up network nodes.

Therefore, the business transactions between nodes and between nodes and organizations in DAO are no longer determined by administrative affiliation, but follow the principles of equality, voluntariness, reciprocity, and mutual benefit, and are determined by each other’s resource endowments, complementary advantages and interests Driven by win-win.

Each organizational node will cooperate effectively under the incentive mechanism of the token according to its own resource advantages and talents, thereby generating a strong synergistic effect.

2. Autonomy and Automation

In an ideal DAO, management is coded, programmatic, and automated.

Organizations are no longer pyramidal but distributed, power is no longer centralized but decentralized, management is no longer bureaucratic but community autonomy, organizations no longer need companies but are replaced by highly autonomous communities .

In addition, since the DAO operates under the operating standards and collaboration mode jointly determined by the stakeholders, the consensus and trust within the organization are easier to achieve, which can minimize the organization’s trust cost, communication cost and transaction cost.

3. Organization and orderliness

Relying on smart contracts, the operation rules in DAO, the responsibilities and rights of participants, and the reward and punishment mechanism are all open, transparent and traceable.

In addition, through a series of efficient self-governance principles, the rights and interests of the relevant participants are precisely differentiated and dimensionally reduced, that is, the corresponding rights and benefits are matched to those individuals who work, make contributions, and assume responsibilities, so as to promote industrial division of labor and rights, Responsibilities and interests are equal, making the organization more coordinated and orderly.

4. Intelligence and tokenization

The bottom layer of DAO encapsulates all the infrastructure that supports DAO and its derived applications – Internet basic protocols, blockchain technology, artificial intelligence, big data, Internet of Things, etc. Governance is a means of governance, changing the traditional bureaucratic system and man-made management methods, and realizing the intelligent management of the organization.

Token, as an important incentive in the DAO governance process, tokenizes various elements in the organization (such as people, organizations, knowledge, events, products, etc.), so that monetary capital, human capital and other element capital are fully Integration can better stimulate the efficiency of the organization and realize the transfer of value.

Advantages of DAOs

The emergence of DAO has made many people believe that the future of mass work is not a company but a DAO.

So why is DAO so attractive? Next, let’s take a look at some of the advantages of DAO:

1. High transparency

Since the DAO’s balance sheet lives on the public blockchain, it is completely transparent at all times, down to every transaction.

Three minutes to take you to understand the characteristics, advantages and how to participate in DAO

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In a DAO, anyone can view all actions and money flows, which greatly reduces the risk of corruption and censorship.

2. Easier globalization

Membership barriers to entry into DAO organizations are low and everyone is allowed to work under the same conditions by following a standard set of rules that apply to all parties, regardless of geographic location.

Essentially, one of the main reasons for creating DAOs is to provide an equal platform for organizations to build and operate. Therefore, DAO organizations are generally easier to globalize than enterprises.

To attract top members, DAOs with similar missions may need to compete for membership and be incentivized to be as transparent as possible, thereby reducing collective rent-seeking costs.

3. The whole organization participates in voting

The DAO changes a decision by allowing everyone in the organization to vote on issues they care about, so the DAO will not ignore or exclude members’ opinions and will ensure that all votes are counted and displayed with some transparency.

4. The immutability of the rules

In a DAO, we can use code to ensure that the rules apply to everyone without exception.

Without the consent of voters, a set of established rules within the DAO organization cannot be tampered with, which can ensure the fairness of governance and the efficiency and transparency of the DAO organization.

How to participate in DAO

People who don’t know the DAO often think that only technical experts can join the DAO, but this is not the case. DAOs need people from all fields and professions. Whether you are a writer, an artist, a salesperson, a software developer, etc., you can almost find a DAO that suits you.

Three minutes to take you to understand the characteristics, advantages and how to participate in DAO

DAO Ecology at a Glance

First of all, we have to study the DAO ecology and find a suitable organization. The current DAO ecosystem mainly includes: DAO operating system, collection DAO, protocol governance DAO, service DAO, social DAO, and media DAO.

Second, review the target organization’s social media and online resources for guidelines and helpful web links.

Next, join Discord (a social software) and start contributing to your area of ​​interest.

Finally, you can earn on-chain rewards.

As a concept in the early stage of development, DAO will inevitably encounter various difficulties and challenges in the development process, and there will be problems such as decision-making failure, supervision and security.

Despite this, we can still clearly feel that the entire development and governance status of DAO has been in a state of progress.

It can be said that the emergence of DAO is very destructive to the traditional organizational structure. As time goes by, it is believed that more and more new businesses will appear in the form of DAO.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/three-minutes-to-take-you-to-understand-the-characteristics-advantages-and-how-to-participate-in-dao/
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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