DAO or decentralized autonomous organization is a new method to organize one or many businesses in structures that are not hierarchical. Such structures encourage the participation of each member in a community. The absence/lack of leaders at the center and collective decisions in a DAO may revolutionize the way we perceive work. Implementation of such an organization is definitely challenging.
DAO is also occasionally used to denote a software processes system that operates in a fully coordinated and automated manner. There is little reliance on people and only indirectly to outsource specific tasks when needed. The perfect example of such a system is a blockchain network which sells file storage or training models based on machine learning. In this system, advertising wares, equipment rentals, payment acceptance and such are done using smart contracts or automated scripts. Such automated networks could take over every aspect of an organization. There is a potential if code could be included to summon and pay humans (lawyers or accountants), if and when they are needed.
There is another interpretation of DAO – a mode to organize processes involving network software governed by people individually. The overall network is decentralized, and its control and guidance are done with the usual and formal corporate structure.
Since DAOs are the very basis of Web3 and DAOs are a collective, these are alternatives to traditional profit and non-profit structures. Community members can be AI agents or humans. They are only known by identifiers that are opaque, like crypto wallet addresses. The DAO model is great for the crypto economy, where reliance on community participation and decentralization is a given. Such open-source communities are very participatory and engaged, offering consistent control and where bias-free decision-making is promoted. The future for such projects is bright and it looks highly likely that AI will take such an organization to the next level.
