Sebastian Freidank - 22. May 23
Daos, companies of the future? Potential for customers & companies
Daos (Decentralized autonomous organizations) attract millions of people worldwide and enable them to be part of decisions that normally only a handful of people should decide.
In this article, we discuss what a DAO is and why they are a new and value-potent vehicles for companies and customers alike a new and value-potent vehicle in relation to transparency, ethics, profit distribution and much more.
Table of contents
- What is a DAO definition
- History - the first DAO
- Difficulties for companies & customers in the current system
- DAO potential for companies & customers?
- Conclusion - can a company achieve more than DAO structured?
1. What is a DAO definition
„A DAO (decentralized autonomous organization) describes the merger of many like -minded individuals in a hierarchy -free community to do better together and through Blockchain-based transparent To make decisions.“
These decisions can focus on a wide variety of areas. Some examples are:
- Common good
Daos rely on transparent Blockchain technology, in order to completely eliminate the risk of fraud by middle men such as institutions and individual individuals. With the help of Smart-Contracts Rules are predefined and anchored as a code in the blockchain (e.g. Bitcoin and Ethereum). These rules can only be changed after coordination and consent of the DAO members.
Fraud of financial markets, abuse of power in politics and opaque Pursue This puts an end. Every decision, every transaction and origin of all raw materials that a company relates to manufacture a product can be traced by everyone at all times.
2. History - The first DAO
Similarities to today's DAO, brotherhoods or "fraternity societies" which represented a merger of many to achieve common goals. The first fraternity was founded in 1776 and was called Phi Beta Kappa.
2.1. The first DAO
The first DAO, as we define it these days, was created in Germany in 2016 by the programmer Christoph Jentzsch and was called "The Dao". Their goal was to manage goals for the community for non-profit and for-profit. The dao was one of the greatest and most promising crowdfunding project in history.
"Code is law" is said among programmers. The Dao was a victim of a hacker attack just a few days after the emergence of a hacker who used a mistake in the code to steal millions of community money.
Despite this apparent failure, the project also sparked the enthusiasm of many afterwards! The community held together and compensated all investors by resetting the code to the earlier condition. The world's second largest blockchain project Ethereum was born.
3. Difficulties for companies & customers in the current system
Companies, face challenges every day. It is becoming increasingly difficult for new companies to gain a foothold in a world of corporations. Without the millions of millions, it has become almost impossible to operate marketing and thus achieve new customers. At the same time, there is a lack of transparency and participation for the customer.
Corporations, on the other hand, are at a time without regulations and excessive competition grown. Marketing campaigns that are prohibited these days were previously allowed. Human-sanctuary seals and sophisticated marketing campaigns still enable them to escape the new rules these days or to use them for their purposes due to available funds.
Customers no longer know which companies, seals and institutions they can trust. The attempt to look behind the scenes ends due to a lack of transparency. The desire to help or determine it is destroyed by unavailable hierarchical structures.
4. DAO potential for companies & customers?
But what if a company like Nestlé, Coca-Cola or VW were not only managed by a CEO and a handful of consultants.
What if this Companies would be guided by thousands or millions of people? Scandals like Slave work in the VW group and Wasernot in Africa Nestlé would not even create! Nevertheless, the value of these companies would not be less, but more people could participate.
To convert existing corporations into a DAO is probably close to the impossibility, but there are unexpected opportunities for new and young companies.
For small companies this is preserved Financing difficult in most cases. Banks do not take any risk. Crowdfunding is locally limited, brings too little and venture capital companies are little risk-savvy than banks.
A DAO, on the other hand, enables people from all over the world to invest in a project without limitation and then, thanks to blockchain technology, have a say in the direction.
In this way, companies can gain capital, customers and fellow campaigners.
Hiring thousands of employees worldwide within a day is far -fetched even for corporations. For a DAO, on the other hand, it is more than conceivable. Anyone with an internet connection, a cell phone or laptop can participate in a DAO.
Proposals, product ideas, business contacts, knowledge or simple coordination can be brought in by all participants.
The larger the DAO community of a company, the greater the potential chance of success.
Marketing begins with the community that uses and shares the product of a company due to enthusiasm. A community that can have a say in the decision making of a new product is inevitably motivated to buy, use and share this product.
In addition, the DAO treasury, which also gives new capital through every new DAO member, enables marketing campaigns in the league of corporations.
4.4. Transparency and credibility
The opaque of companies and corporations would be solved with the help of a DAO. Decisions about where raw materials are obtained from, how employees and suppliers are treated are open to the blockchain.
Customers no longer have to dubious and also opaque seals and trust their promises.
4.5. Co -determination of customers / users
Due to a right of co -determination and the open direction of a company, Siegel may be shaped unnecessarily or completely re -shaped.
Communicated values and subsequent actions can be viewed and compared at any time. If the communicated values of a company or a different kind of organization no longer match the actions and marketing campaigns carried out, customers who are not part of the DAO can also refrain from these companies. As a member of the DAO, it can also be intervened at an early stage and the direction of the company can be steered back into the correct train.
4.6. Exclusivity for Dao members
Exclusive rights can be granted.
In this way, special privileges are created that create further incentives, to participate in the company, to use products and to report friends of the success.
4.7. Allocation of profits
In addition to the aspects such as ethics and self -determination, the profit sharing factor will be another reason for participation in a DAO.
Parts of the profits generated by the company can be distributed to the DAO members. In this way, customers are rewarded for using the products, telling about it and helping to shape new products through coordination.
The DAO is completely free to decide how this profit allocation takes place.
- Complete distribution of profits
- Partial release and partial reinvestment
- Salvation to all DAO members or
- Distribution only to members who actively participate in votings
- Stagated distribution depending on the intensity of the participation within the DAO
These are just a few examples of how the company's profit treasury, which acts on the basis of the DAO, could be divided.
5. Conclusion - Can a company achieve more than DAO structured?
Daos are an increasingly popular vehicle to influence world events. Each DAO creates its own small interest universe, which views exactly huge debauchery. DAOS enable collective, yet efficient decisions. They enable ethically correct and transparent actions to be economically designed and to obtain funds with a new type of fundraising, manage, then distribute them again when the profit is made.
Nevertheless, due to the novelty of the technology, Daos mountains dangers such as hacks and challenges such as coordination and execution. However, solutions can be found for all challenges.
Due to its fundamental structure, a DAO is open to all people in the world. Racism or other types of discrimination do not exist in a DAO. If you want to participate and take on more tasks within the DAO, you can do this by participating in votes and your own applications.
The more people participate in DAOS, the more likely the success of this DAOS and depending on the orientation, small local and global projects can take huge influence on the direction we humans want to go.
Daos has the opportunity to offer centralized corporations that have grown for decades without regulations and to indicate the direction and states. And all of this, due to the network effect within a very short time.
18. July 23
We clean up with the myths around Bitcoin. We have been accepting Bitcoin as a means of payment since 2017 and have put a lot of criticism for it ... wrongly!
02. June 23
Are decentralized autonomous organizations the better and fairer companies of the future? How you can benefit from Daos as a customer.
29. May 23
Structuring corporations like Nestlé as a DAO seems utopian. However, Daos offer new & small companies many options.
- Choosing a selection results in a full page refresh.