Future Society Developing Trend- the DAO

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9 min readMar 4, 2022

Prologue

In the past few centuries, the mass production of machines brought about by the Industrial Revolution has made people’s life quality improving by leaps and bounds, while also allowing the capitalists who master the means of production to accumulate the vast majority of wealth. Later, as machines replaced most of the labor, people began to manage productive by using machines. Gradually realizing that mastering the methods of the work is more valuable than the work itself.

In the beginning, the ones who know how to generate electricity and how to make machines became capitalists. Then came the computer, means of work and production also began to be controlled by the very few capitalists who had computers. Later, the emergence of PCs and the Internet broke the pattern of this information monopoly, allowing everyone to surf freely and absorb information on the Internet.

In fact, the Internet is still in the hands of capitalists. They have centralized control over computers. If they want to shut down the central server, most of people will no longer be able to access the Internet. The constant redistribution and circulation of wealth are just to maintain their centralized company mechanism.

The success of many businesses is achieved by centralizing resources for profits. Governments and financial institutions acquiescence capitalists to do so. However, the emergence of blockchain will subvert this pattern, and DAOs have emerged to try to resolve the centuries-old problem of centralized governance.

Blockchain changes human society and subverts the core value of world commerce.

1. Blockchain solves the “Crisis of Trust” issue.

1) Society and the global economy are built on the trust of powerful intermediaries such as governments, banks, Google and Facebook(Leader Tech companies). In the business world, some large corporations have made their fortunes by allowing themselves to act as intermediaries in transactions and exist as intermediaries that are trusted by the public so that they can net tremendous profit.

Although these intermediaries did sort of nice jobs, they have their limitations. “Maintain these corporate machines are costy and have relatively low efficiency. Anything that is centralized will end up in bloated and corrupt system”.

The distributed, immutable natures of the blockchain make it more trustworthy. The Economist hailed the blockchain as a “Trust Machine”. The Wall Street Journal calls it as “Democratized Trust”.

This trust can be used to establish the new form of currency, verify the validity of documents, record votes, and conduct digital asset transactions, etc, and without the need for any intermediaries.

2. Blockchain changes the nature of Internet content, from delivering information to delivering values.

The development of human civilization is inseparable from the transmission of information as well as true value spreading. Accesses of efficient information and value transmission are like the lighthouse of human civilization. Human beings used words as the information transmission carrier, and the Internet as an efficient information transmission access. In the development history of value transmission, human beings took currency as the carrier of value transmission. The birth of blockchain technology is directly used as a channel for value transmission. The blockchain changes the development of communication technology from delivering information to delivering value.

3. Dilemma

The potential energy is still hidden behind this industry and the people, waiting for being transmitted and released.

Majority

1) Humans are often afraid of the unknown of new things or future. Blockchains were born in chaos where deception goes with wealth along the way. This created obstacles for industry pioneers to find the value content of the system.

2) The crypto market is changing.The pace of user cognition cannot keep up with the speed of industry evolving. Due to limited cognition, people always rely on risk speculation in the secondary market.

3) Nowadays, the whole industry is all about hyping. We need high-quality projects with industrial changing attitude. Reject those short-term speculation to prevent us from scams and rugpulls. Individual energy is limited, further more, chasing hyped trend is the norm.

4) The capital background feature has become a barometer for the development of projects. Although people turn their attention to capital, they also hate capital because of the “pump then dump” tricks. Capitals are all evil by squeezing investors dry, which force people need to unite and lean on each other.

Industry Internal Facts

1) The information gap created by globalization.

2) Great ideas and visions stuck there like castles in the sky.

3) Obscure and confusing content cannot attract capitalists and investors.

4) Limited marketing and spreading accesses.

5) Enough attention to industry and technology, but lack of market research and user research comparing to traditional business.

6) There is an urgent need to reach a strong consensus on the project

Trilemma

The users lack of fundamental and float on the surface of the industry cognition and projects.

Dilemma of the project team: Focusing on technology outputs, but lack of understanding of the whole picture of the industry status and user sentiment.

Dilemma of the industry: The needs of high-quality projects and startup teams. The needs of users who are optimistic towards the blockchain industry long-termly.

The industry needs an organization that could gather the most valuable blockchain projects in the world in order to resolve these dilemmas. Rallies the most passionate encryption enthusiasts around the world to promote the development of the encryption industry!

4. Ultimate Solution: The DAO

The internet and social networks have broken the boundaries of geography. It’s way easier than ever for like-minded people exchanging thoughts. The emergence of native digital currencies and finance have spawned a new type of social network where people are able to communicate, unveil the mist and hoax, manage connection, gather information and ultimately convert the information into profitable values. Like previous networks, these new networks are not constrained by geographic boundaries. They can be converted into giant organizations, or only exist within a certain selected participants. This is the DAO.

The DAO is able to revolutionize the way humans are organized, eventually surpassing the world’s largest companies, in size and scope, or even a nation or country.

1. Because of the DAOs’ existing, people now have the liberty to select certain groups or organizations to meet their best interests. The DAO picks up the efficiency and value transfer, which would promote everyone’s creativity and motivation, resulting in a new commerce change. At the same time, the DAO is also expected to become a new solution for organization to deal with the uncertain, diverse and complex environments.

2. People are connected and build their own DAO establishments freely. The DAOs are founded upon variety of interestings. The Smart Contract kicks in to automatically distributes the income base on your contribution to the DAO. The greater interested, the greater contribution output, the more benefits will be generated.

3. The DAO does not belong to any individuals, even not the founders. They would take zero advantage from the DAO if their contribution is zero, just like any other members. All members are anonymous in DAO. The education background, experience, and titles do not matter within, only the contribution matters.

4. If the certain DAO loses its initial stand, just pack your full-filled bags and leave for another one that ideal.

1. DAOs

With the wider spreading of the decentralization principals in the encryption industry, the DAO has been adopted by more and more groups and organizations. Community-drive, bottom-up, collective-autonomy are pushing the DAO thrives. It is believed that everything can be DAO. A large number of DAOs were born inside

and outside of encryption world. Protocols, social, investment, funding, services, media, content creators and collectors, various fields of the traditional world, are adopting the ideas of DAO. The DAO continues to attract contributors to join and create variety of new DAOs enriching its spirit.

However, most of these novel DAOs wouldn’t carry far. The major causes are they did not build a sustainable system and operating theories in the early stage of design.

2. Current issues of the DAO

1. The DAO infrastructures are imperfect. There are still tremendous technical barriers.

The DAO infrastructures can be divided into two major parts: The DAO launcher and the DAO management tools, involving core team participating, assets management, community participation and token distribution, etc. It is mainly used to improve the operating efficiency for the DAO. This year, the DAO service-related tools are popping. Such products include DAOs treasury management suite-Parcel, decentralized code management tool-Orgs, task bounties platform-Layer3, DAOs extension pack-Zadiac, etc.

All DAOs need these tools and procedures to support the establishment operating, and even modularly added into the current DAO establishments. However, most of these infrastructures are currently in its exploration phase. (i.g. The votes supporting and passing is automatically execution tools) Some greatly restrain the developing of the DAOs.

2. The participation of general users is not high. The DAO governance still has a centralized attribute.

Almost all projects in need of the large scale of general users participating so that true decentralization can be achieved. According to the voting data of Snapshot, although voting does not require gas fees, the number of voters and participation of most projects are not optimistic.

At present, small holders lack motivation to participate in governance, which lead project voting easily being controlled by devs teams and investment institutions. (i.g. Uniswap donation incident, although majority $UNI holders believe that it is not meet the best interest of the project, it’s still passed by because of support from a16z and multiple devs team members. It turned out many DAO members didn’t even know there was a bill until it got passed.)

3. The mature operation mechanism of DAO is still incomplete, and there barely are cases for reference

At present, the operation of the DAOs is still in the early stage of exploration. Many DAOs have various problems in the operation process of how to internally coordinate, how to improve transparency, and how to determine the form of decision-making.

4. The periodicity of DAO has no sustainable empowerment.

No long-term supply and demand relationship existing in the core incentive mechanism of DAOs. Further, there is no long-term planned route for the DAOTOKEN or DAONFT consumption mechanism. Internal connection from NFT and member empowering is missing.

3. The Ideal DAO

The ideal DAO shall not be restrained to certain domain, sector or interest.

The DAO should have a innovationism that can bring together like-minded partners across racial and religious boundaries. Get together to counter the encrypted world entropy increasing. The DAO provides every encryption enthusiast to realize his/her values. Suffering people and desperate lives will be cured. Providing each other right path of life and sharing ideas. The DAO should commit to provide sustainable income, mutual fairness, health and harmony among all members.

The features for the ideal DAO

1. Low threshold — everyone can take part in.

2. Sustainability — It can meet the long-term supply and demand of the entire industry and even the whole world.

3. Precision — The autonomous contribution system must be verified by a complete algorithm audit mechanism.

4. Diversity — The tasks shall meet variety of roles’ demands and cans.

5. Strong interactivity — The NFT rewards motivate interactivity, with access unlocking features.

6. Fairness — There are no supreme rules. There is no authorities.

7. Freedom — Joining or leaving are free wills, so is contribution.

8. Growth — Have an upgrading role system.

9. Charity — Humanistic care, well-beings, charity, dedication.

8. Future

Despite the hurdles, the DAO represent a paradigm shift in economy and life. It requires the organizers must have a strong world-changing mindset and a bit of idealism taste. If the Web3 is going to become an internet that collectively owned by all users, the DAO will be its measurement and will sustain the Web3 concept landing and carrying far.

As these trends continue to vibe, we would get to witness the largest organizations, venture capital firms, media corporations built not on legal contracts, but on blockchains. As the crypto user experience improving, DAOs are likely to become the blueprints in an more and more digitalized world!

#nowhereDao

Nowheredao

Discord Link:https://discord.gg/c32yTPaD

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