Web3, the creative economy, and the future of labour are all built on DAOs.
The concept of DAO (decentralized autonomous organization) has been envisioned as an organization that automates and streamlines business functions. It leverages smart contracts and blockchain technologies. The main idea has been to simplify the complex processes involved in doing a business. The goal is to use different assets for digital transactions without using any intermediaries. It promises cheaper, more transparent and faster business transactions.
The Digital Intermediary
The purpose of DAOs has been to replace several intermediaries involved in business processes. The developers want to allow faster scaling of the business model and improve the transparency of the process. It will result in an organization that does not fit the standards of a traditional organization but still delivers the same and even better results. DAOs have fueled an economic revolution, giving rise to a new economy. It brings together developers, creators and artists from all over the world. They can develop and monetize their ideas at the global level.
The Working of the DAOs
A DAO has been conceptualized as an organization that establishes roles, responsibilities and membership records in a ledger based on blockchain technology. Its evaluation and charter are openly available and cannot be changed. Anyone wanting to join it needs some type of community membership or token. These tokens are available in the form of fungible or non-fungible assets. They can be fiat or crypto. Those who want to get these tokens must pay with crypto or fiat money.
The DAOs offer a new form of structure that supports creators. This economic model can be leveraged to develop a borderless business model. It is an ongoing experiment that will continue to bring new innovations in the field of business, finance and other industries.