Among other things, Incognito is DA-centered. This refers to a change in the structure of blockchain and cryptocurrency governance that goes along with rapidly changing landscapes. That is a revolutionary concept: all the processes of continual decision-making can be decentralized, automatized and settled by smart contracts on the blockchain.
The principle underlying DAOs is autonomy. Unlike traditional organizations, they have no central ruling organ. Instead, everything is decided by code and consensus mechanisms. Therefore, this departure gives participants a much more level playing field than hierarchical structures. Participants now have a say in how the project or community is run, and can play this role to an extent beyond anything that has been seen before.
DAOs use the characteristics of blockchain technology to develop open, trustless systems. As the voting power of participants depends on token holdings, decisions can be made in a democratic fashion. As a result, it is decisions like whether to carry out protocol upgrades and how much money should be allocated that are made by the community.
In addition, one of the advantages that DAOs have is to promote innovation and community participation. Because such projects have a DAO model, they enjoy richer and more varied input from all kinds of parties; the resultant ecology is thus both powerful and comprehensive.
But given the immature state of DAOs, there are also obstacles: to find means of getting around legal structures and overcome security concerns. This was why it was so important to establish safeguards. Moreover, since the infamous The DAO hack of 2016 a lot of people in that community have been working on strengthening resilience within these autonomous systems.
So as long as DAOs gradually turn mainstream, their applications won't be limited to the financial field any longer but can also reach beyond pluralistic governance of digital assets or decentralized participation in DApp management. While the form of DAO is changing, it represents one step toward a future where people will participate more directly and actively in governing from inside out. What everyone hopes for but hardly anyone has yet seen realized among decentralized systems would be boiled down to this: They'd have some stake in how projects are run and what the communities look like--to whatever degree.
