What DAO means is playing an important role in blockchain

Is it possible for a completely distributed autonomous organization to exist in which everyone in the system participates fairly and maintains the development of the system? The popularity of the DeFi and NFT markets has spawned many different DAOs, among which there are project DAOs, and foundation established DAOs. To date, there are hundreds of DAOs, responsible for managing more than tens of billions of dollars in assets. DAO in the blockchain generally refers to the abbreviation of (Distributed Autonomous Organization), which is an organizational structure based on the blockchain. What DAO means?

To understand this concept, you need to analyze it from its three components.

1. Decentralized

Compared with the common forms of organization and management, DAO has obvious characteristics of decentralization. However, centralization and decentralization are not all-or-nothing. Many DAO organizations rely more or less on centralization to start or maintain, and they have not achieved absolute decentralization. Therefore, it is more accurate to understand from the perspective of degrees of freedom, that is, to show an organization with a clear decentralized scale.

2. Autonomous

Different from the traditional "top-down" management model, DAO's "plane management" and "autonomy" attributes are more prominent. All token holders can participate in proposals and voting decisions. From the perspective of ownership, DAO belongs to all stakeholders such as investors, developers, users, suppliers, and partners. From this perspective, autonomy means that DAO belongs to everyone who can create value for it.

3. Corporations

Generally, DAO is regarded as a decentralized company. Of course, it is more business and practical to understand DAO from the company level, but we need to make it clear that DAO is not a specific organizational entity, but a general organizational form. DAO can be not only a company, but also any organization that requires human participation, such as cooperatives, network platforms, communities, etc.

The emergence of what DAO means also represents the transformation of the three groups of relationships between machines and people, platforms and products, and the public and the core. By writing code and automatically executing smart contracts, DAO has its own set of operating logic and automatic execution capabilities. Through the establishment of a platform model, DAO supports all participants to participate in decision-making and execution. But among them, the decentralized change is the most eye-catching.

The yearning for decentralization comes from the depths of our hearts. Humans' yearning for freedom and democracy is innate. In the process of liberating from the shackles of nature, we have witnessed the rapid development of science and technology. The pursuit of equality and democracy has reduced race, The bondage brought by gender and class. Modern organizations represented by companies are often regarded as exploiters, and when more and more profits are concentrated in fewer and fewer large companies, a revolution in corporate organizational forms has begun.

For DAO governance attempts, as with all blockchain project requirements, the realization of decentralized products and functions is a must. As for the decentralization of organizational management, as the project continues to develop and mature, it will gradually become a unified requirement for users. Just as our traditional business society needs corporate governance, it also needs such a role in the blockchain world. Now you have more clues on what DAO means, maybe there will be a better replacement for it in the future, that's a story.