Forum Views - January 2023
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FORUM VIEWS - JANUARY 2023
This opens up so many new opportunities for global
collaboration and coordination.
DAOs are an effective and safe way to work with like-
minded folks around the globe. Think of them like an
internet-native business that's collectively owned and
managed by its members. They have built-in treasuries that
no one has the authority to access without the approval of
the group. Decisions are governed by proposals and voting
to ensure everyone in the organization has a voice.
that means no one can spend the money without the
group's approval either. This means that DAOs don't need a
central authority. Instead, the group makes decisions
collectively, and payments are automatically authorized
when votes pass.
This is possible because smart contracts are tamper-proof
once they go live. You can't just edit the code (the DAOs
rules) without people noticing because everything is
public.)
To understand what is the power of a DAO and why over
time they will replace traditional organizations, we need to
understand the weakness in modern corporation and how
they are governed.
Today if we look at traditional companies they have five
core structural characteristics, that make them productive
and efficient:
legal personality, limited liability, transferable shares,
centralised management under a board structure, and
shared ownership by capital contributors.
however these companies are not governable and that’s a
fundamental problem. Because of the divergent interests
between shareholders, managers and external
stakeholders and Despite robust internal processes
outlined in company constitutions and the codification of
industry best practices in legislation, empirical analyses
suggest that modern corporations remain susceptible to
failure.
We need incentive mechanisms and structural safeguards
to overcome this issue and this where lies the power of
DAOs.
DAOs ostensibly eliminate agency costs due to the absence
of a board of directors, automated governance mechanisms
and transparency provided by the blockchain upon which
the DAO is launched.
Rather than decisions being made by a board of directors,
governance rules set out in code typically decentralise the
decision making power across DAO token holders. As these
token holders are the owners of the DAO, the division
between capital and labour is reduced. DAO proponents
argue that DAO token holders do not face the same agency
relationship that company shareholders face through
delegated decision making. Instead, token holders
contribute to the DAO in a non-hierarchical, “dynamic set of
working relationships that continuously and dynamically
self-organize around projects and outcomes.
The metaverse seems set to
reshape the world of work in
at least four major ways: new
immersive forms of team
collaboration; the emergence
of new digital, AI-enabled
colleagues; the acceleration
of learning and skills
a c q u i s i t i o n t h r o u g h
virtualization and gamified
technologies; and the
eventual rise of a metaverse
economy with completely
new enterprises and work
roles.
There's no CEO who can authorize spending based on their
own whims and no chance of a dodgy CFO manipulating the
books. Everything is out in the open and the rules around
spending are baked into the DAO via its code.
Unlike traditional organizations DAOs are transparent,
inclusive and democratic.
Before starting or joining a DAO you need to fully
understand how DAOs work.
The backbone of a DAO is its smart contract. The contract
defines the rules of the organization and holds the group's
treasury. Once the contract is live, no one can change the
rules except by a vote. If anyone tries to do something that's
not covered by the rules and logic in the code, it will fail. And
because the treasury is defined by the smart contract too
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