The transition is here: how business will work in the near future: DAOs explained

We are all sick of the 9 to 5 schedule that we must face whatever job we choose in our career. It doesn’t matter how much you love your work, your freedom is being taken in the moment you put your foot on the office floor.Luckily, with today’s advanced technology a solution is here. It evolves gradually, but it is just a matter of short time until it will overtake the business industry.People are mad, you are mad, I am mad, but unite, the transition from the traditional hierarchy business model to the modern descentralized business model, had never been more powerful than now.

Because Descentralized Autonomous Organizations (DAOs) become more and more popular every day, and they are here to stay.

Let’s discover together the reason WHY they are so special. You’re simply gonna love them as soon as you find out the amazing benefits you instantly receive when you decide to do your work in a DAO.  

Here is all you need to know!  

1. What is a DAO?

A Decentralized Autonomous Organization is a legal entity structure which involves people interacting with each other according to a self-enforced and open-source software protocol (a blockchain), in the absence of a central authority.   In plain language, it is an organization that lives on the blockchain, ruled by smart contracts instead of CEOs. No CFOs who can manipulate the books, no CEO who takes the majority of the profits and makes all the decisions, no need for intermediaries, just transparency and well,

For you it means you don’t have to report your work to someone else, because it is automatically stored on the blockchain and your rewards reflect your involvement in the DAO. You take what you deserve, no less.   Surely you felt many times before that you do more work than it’s necessary, you put your time and heart to finish the job well, but the boss decides you haven’t done enough and the wage is still unbalanced. Tired of that?    

2. How a DAO works?

A DAO is ruled by code. Smart contracts governs it, instead of people. It only exists on the Internet and has no a physical entity   The idea behind a DAO is that all members share a common goal. The decisions are taken by the entire group of volunteering members, no by just one leader, using a new voting protocol. Anyone curious can take part in the voting session from anywhere, just using a computer, smartphone or laptop. Pretty amazing, right? No office meetings or secret events.   But how the trust between two or more strangers behind a computer is possible?   The blockchain technology is the answer, regulating the behavior of all network participants.   The trust between two or more strangers is now possible, because the code can’t be fooled.

3. Components of DAOs:

  Simply, DAOs use automation and Internet connections to work. Their structure is based on algorithms created using coding and cryptography, that leads the next moves or decisions in an organization. The rules are encoded in smart contracts on a blockchain. To add more rules or make any changes, a voting processis needed. This vote includes each member in a DAO, so this makes the DAO distributed.   By now you already may guessed that it is not a boring and traditional voting process, so how the voting process happens in a DAO? We have to look at the DAOs’ infrastructure to understand this:

I. Governance with tokens

  Every DAO has a governance token.A governance token represents a percentage of ownership, giving the users voting power over changes in the functionality of smart contracts which run the protocol. You may have already made the connections and realize how voting works: more token equals more vote. So, in a classic DAO model, the decisions are made ‘on-chain’ through a system of token-based voting.   If you want have a bigger impact in the voting sessions you need more tokens. But how can you obtain more?   Tokens can be bought from a marketplace or being receive as rewards depending on your involvement in a DAO. Maybe you were in a specific meeting or you made an important proposal or you were an early-bird in a DAO development. Also, an easy way to earn tokens may be your level of activity in the community’s channels (discord, twitter and so on).    

II. Committees

  Instead of departments found in a traditional organization like management, marketing, accounting, development, supervision, staff and so on, DAOs have committees. This committees have no leader. When a committee is formed, a so called ‘token manager app’ appears that is used to define the set of members and also to manage the voting process.   All the information and data about a committee, such as name, description, members and general data of the token and voting, in addition to the possibility of adding new members can be overviewed. Also, the history of the members’ activities is always shownIn this way, you have a better idea of what is going on within the committee and what has been done.

III. Treasury

  As any other organization, a DAO needs founds. This founds are the contributions from the external users, with no legal barriers. The founds are locked in a ‘vault’and are used to achieve the DAO’s goal, each member having the right to vote and propose where the founds are going. Another eye-catching function is giving back some of the treasury founds to the contributors. More examples are charity, acquisitions and so on.    

IV. Crypto payment system

  Because a DAO’s model challenges a traditional business model, the payments are in the form of cryptocurrency. The tokens receive have a value exponential bigger than the dollar or less/almost equal. The tokens can be converted on an exchange for other cryptocurrency, so they can easily 'go from tokens to dollars'. of using crypto payments are: (tokens are issued on a blockchain hard to hack), (crypto can boast fast transactions), low fees (no middle-mans).

4. Types of DAOs

• DAOs Operating System: offering resources to everyone regarding how to start a DAO
• Grants DAOs: like a Venture Capital Fund, funds can be donated and use a DAO to vote how the funds are allocated  
• Protocol DAOs: implementing changes  
• Investment DAOs: members can pool capital to invest in projects at their earliest stages
• Social DAOs: group friends become co-workers and interact on decentralized platforms
• Service DAOs: creating decentralized working groups for individuals or agencies & bridging the gap talents-communities  
• Collector DAOs: buying NFTs & collaborating with artists to collect the next art master piece of web3  
• Media DAOs: incentivizing content creators and consumers & sharing the open agenda of news  

Businesses are falling and DAOs are rising and now you know why. Freedom, equity, innovation is what DAOs give you. So, when are you going to start working in a DAO?   Don’t miss the chance you have now!          

Disclaimer: This is not financial advice! Only educational entertainment purpose!

For more education, visit: Elena?? (@CatalinaDidita) / Twitter