What is Decentralized Autonomous Organization (DAO)?
" ... In the long run, a hierarchical society was only possible on a basis of poverty and ignorance. "
― George Orwell, 1984
What is DAO?
We can think of DAOs as structures created for a specific purpose. In other words, a DAO can be created to manage or finance a specific project or platform. For example, a DAO might be created to manage a platform for artists to showcase their work. This DAO can be used to determine the project's roadmap, approve new features, and pay developers.
The most important feature of DAOs is that they do not have a specific center. Rules are created by people within the system. All transactions are transparently visible to everyone.
There is no specific hierarchy in DAOs. Decisions are made jointly by the community.
I think it only makes sense to seek out and identify structures of authority, hierarchy, and domination in every aspect of life, and to challenge them; unless a justification for them can be given, they are illegitimate, and should be dismantled, to increase the scope of human freedom.
_ Noam Chomsky
How does DAO work?
1) Establishment and Smart Contract Creation: DAO setup begins with the creation of a smart contract on a blockchain. The smart contract determines the rules, purposes and operation of the DAO. This contract runs automatically under predetermined conditions.
2) Token Distribution: Those who want to join the DAO receive the DAO's tokens. These tokens provide the right to vote and contribute to the DAO.
3) Voting and Decision Making: DAO members make decisions on certain issues by voting based on their tokens. For example, voting may take place on issues such as the DAO's future projects, investments, or use of funds.
4) Implementation of Decisions: Decisions taken based on voting results are automatically implemented by the smart contract.
5) Development and Update: DAOs are constantly evolving and updated through community participation. Members can bring new proposals to achieve the DAO's goals and have these proposals accepted through a voting process.
There's a theory that says that life is based on a competition and the struggle and the fight for survival, and it's interesting because when you look at the fractal character of evolution, it's totally different. It's based on cooperation among the elements in the geometry and not competition.
_ Bruce Lipton
What will DAO change?
1) Governance and Decision Making Processes: The concept of management may be replaced by the concept of governance. Communities can make any decisions that will affect their lives.
2) Financial Services: Finance may be possible without the need for banks and intermediary institutions.
3) Structure of the Internet: It may be possible to manage the Internet in a decentralized manner, so people can own their own data.
4) Community Centered Projects: People can come together and create projects and they can jointly finance this project
It’s time to recognise the Internet as a basic human right, that means guaranteeing affordable access for all, ensuring Internet packets are delivered without commercial or political discrimination, and protecting the privacy and freedom of Web users regardless of where they live.”
— Tim Berners-Lee
In conclusion:
A future in which people can personally participate in management awaits us.
Technology has always played a big role in shaping human life. Maybe by 2050 we will live in a city run by the DAO. With the agricultural revolution, people did not settle down en masse but began to adopt this new lifestyle in small groups. Over time, these small groups formed cities of thousands of people.
Once again, humanity must make a choice over its own lifestyle. Is it a future where we are governed? Is it the future where we are involved in every aspect of management?
One of the best things about technology may be that it makes things possible. At first, uncertainty scares us, but as the future becomes clearer, fear gives way to opportunities. No one could have predicted from an article published in 2008 that we would get here. But we continue to progress slowly and steadily.
