Decentralized Autonomous Organization (DAO) is a web3 idea that allows communities, businesses or any kind of collective organization to be administered and governed without centralized direction, thanks to the capability of blockchain.
So what does this mean exactly? Well, blockchains like Ethereum allow the creation of smart contracts – essentially sets of rules – to be implemented in a secure manner, so that no individual party can overrule the decisions of others when they have no authority. This is primarily achieved by leveraging two facets of blockchain technology – encryption and distributed storage. Proponents say that in addition to removing the ability for network or infrastructure owners – or even central governments – to impose their will on how the organization is run, it can also create revenue gains. efficiency and give users greater control over how their data is used.
However, there have also been controversies – with hacks and cyberattacks raising questions about the actual security of the technology and concerns about the power consumption and emissions created by the blockchain infrastructure that underpins it. – tends.
The basic concept of DAO is certainly fascinating, however, and it represents an area where technology trends such as artificial intelligence (AI), blockchain, and the Internet of Things (IoT) intersect to create new possibilities.
With that in mind, here’s a look at some of the most interesting projects I’ve come across so far. Some of them are no longer current or active, but I included them because they were important in some way, even if they weren’t necessarily successful, and their existence might inspire other DAOs who may emerge in the future.
Uniswap is one of the largest and most popular DAOs and operates as a cryptocurrency exchange based on the Ethereum blockchain. Anyone can become a member by holding the UNI token, which gives the right to vote on how the organization is run and administered.
This one wasn’t a huge success – The DAO was one of the first attempts to build a decentralized financial (de-fi) network for venture capital crowdfunding. Unfortunately, it was hacked, resulting in the theft of $60 million worth of Ethereum token ether. That theft was controversially canceled and the funds returned to their rightful owners through a process known as “forking”. This basically split the blockchain into two separate chains – Ethereum and Ethereum Classic.
It is an online virtual world governed by a DAO, where administrative and governance decisions are made by stakeholders in a democratic manner. Anyone who owns the platform’s token, known as MANA, can participate in the process, and the platform is quickly becoming popular with global brands such as Morgan Stanley, Coca Cola and Adidas as a way to reach audiences. digital native.
US CryptoFed DAO
This DAO made headlines by becoming the first to be recognized as a legal entity in the United States, thanks to a Web3-friendly law passed in the state of Wyoming. It positions itself as a kind of crypto-equivalent to the US Federal Reserve and aims to enable trading without fees using its own token, known as Ducat.
BitDAO is a decentralized investment fund backed by PayPal founder Peter Thiel, created to enable anyone to buy a stake in web3 and de-fi startups and initiatives. Token holders have the opportunity to vote on the distribution of managed capital among the projects supported by the fund.
This DAO aims to create smart contracts capable of performing legal services. It is headquartered in the Cryptovoxels metaverse platform and is interested in building blockchain tools that can automate aspects of legal services, including arbitration. With many DAOs existing in a gray area of legality, services like this could be essential in the future.
Friends with benefits
A crypto club where owners of the FWB token can meet to network and collaborate on individual projects. There are individual hubs for different cities, so users can connect with like-minded Web3 people in their own locality. The more FWB tokens a user holds, the more interactions and opportunities there are to connect.
This DAO was created in 2021 as part of a decentralized, crowd-funded effort to win a rare edition of the US constitution, auctioned by Sotheby’s. Ultimately, despite raising over $40 million from 15,000 backers, it was not successful. However, the organizers said that although they did not win the auction, the project was successful in that it raised awareness among many about the potential of DAOs as a crowdfunding vehicle.
A collective of artists and art lovers who invest in NFT artworks and other digital collectibles. It focuses on pieces that its members believe represent important ideas and causes, and experiments with the idea of ”split” ownership of art, as all members have a share in the growing collection.
Basically a fundraising DAO set up to collect and distribute donations to help those affected by the war in Ukraine. Among his successes was the auction of an NFT image of the Ukrainian flag, which sold for 2,258 ETH, or $4.7 million at the time of writing. Initiated by UK-based Ukrainian activist Alona Shevchenko, the project has received support from activist group Pussy Riot.
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