Compared with the traditional Internet field, Web3 users expect a deeper sense of participation and empathy at the psychological level, not just financial returns. This gave birth to the emergence of DAO, such as FlamingoDAO and PleasrDAO through the joint efforts of DAO members to build a treasury to invest in the purchase of expensive NFT; like MoonDAO to raise funds through DAO to send people to the moon; also like CultDAO decentralized venture capital funds .
What are DAOs?
What are DAOs?
DAO is the abbreviation of Decentralized Autonomous Organization, that is, an organization is a group of people and entities with a common goal or idea. DAO should be decentralized and autonomous, so there is no CEO or executive board of directors responsible for decision-making; and autonomy also means that reasonable governance rules need to be written into the smart contracts of the blockchain, and DAO members influence DAO according to these rules. matters to vote on.
Combined with the three-dimensional definition of V God DAO, it is better to understand: self-government, supplemented by rule of man, and internal capital. DAO is a unique, self-governing organization that is run entirely by blockchain smart contracts, has its own charter and procedural rules, and replaces day-to-day operations management with self-executing code. The main advantage of DAOs is that, unlike traditional companies, blockchain technology provides DAOs with complete transparency.
All actions and funds of the DAO can be seen and analyzed by anyone. This transparency significantly reduces the risk of corruption, illegal activity or fraud by preventing critical information from being censored.
Also, ensuring that DAOs maintain their purpose is blockchain technology. This is because, like NFTs, DAOs can also use smart contracts, which can trigger actions as long as certain predetermined conditions are met. For example, in the case of a DAO, a smart contract can ensure that proposals that receive a certain number of yes votes will automatically go into effect. And, unlike traditional organizations that operate from the top down, DAOs operate in a flat hierarchical structure, allowing all members to have a say in key decisions that affect the wider group — not just the key executives.
In addition, DAOs are more attractive to ordinary users than traditional organizations. DAO is a challenge to the current governance system, bringing community members together with a flat structure and no hierarchy. Community users are the foundation of DAO, everyone can be a participant, a co-builder, and everyone has the right to make proposals—once the proposals are approved, these proposals will be executed in the smart contract.
DAOs represent a revolution in decentralization and a platform where everyone can build and prosper together in a transparent and efficient manner.
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The first DAO
Most people think that the concept of DAO was proposed by V God (some people think that the work "Daemon" by science fiction writer Daniel Suarez is the original text of DAO), and the first DAO - The DAO, was created in early 2016.
The DAO was initiated by Slock.it, hoping to build a decentralized fund. Most of The DAO's processes are fully automated, and its concept and vision have resonated strongly with many blockchain enthusiasts. The DAO started crowdfunding in April 2016. In just 28 days, it raised more than 12 million ETH (accounting for nearly 15% of the total ETH at that time), with a total value of more than 150 million US dollars.
But this huge success did not last long. Soon hackers targeted this huge amount of funds, and just two months later, on June 17, 2016, they used a vulnerability attack to steal The DAO nearly 1 million dollars. /3 of ETH (in fact, the vulnerability was discovered by Emin Gün Sirer, an associate professor of the Department of Computer Science at Cornell University as early as May, and The DAO team also received a security report about the vulnerability, but concluded that it will not be attacked) . The incident caused heated discussions, and ETH plummeted by 30% (V God also vigorously promoted The DAO before).
This matter continues to ferment in the ETH community. Due to the large amount of funds, there is no way to ignore it or let it go. Vitalik proposed a fork solution, but this requires the consent of the majority of miners. In order to bribe the miners to reject the soft fork, hackers even offered 100 w ETH rewards.
However, after fierce quarrels and the suggestion of V God himself, it still obtained more than 90% support. The ETH team manually modified the source code to roll back the transaction, and even if we look at it now, it is a milestone hard fork event.
The two chains are divided into:
ETC (Original Chain): ETC proponents believe that the core of the blockchain is centralized, which cannot be tampered with or interfered with, so even if a problem occurs, there should be no hard fork or rollback.
ETH (new fork chain): Most people think that ETH should continue to innovate on the original basis, and that bad incidents like theft should be severely cracked down. The question of whether to "manually intervene" will only allow more hackers to take advantage of it.
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Milestone DAO
In November 2021, Metaverse and DAO broke the circle almost at the same time, and the two hot words spread rapidly in the online world, bringing a new round of upsurge. Metaverse suddenly improved because Facebook changed its name to Meta, and DAO was born again because of the spread of Constitution DAO (Constitution DAO).
In mid-November 2021, Sotheby's, the world's top auction house, will auction off an official first printed copy of the U.S. Constitution, the only surviving copy in the hands of a private collector. Many American users believe that the Constitution should be put back in the hands of the people. Thus, a founding team of nearly 30 people established the Constitution DAO together; they have only one goal - to obtain a copy of the constitution through fundraising auctions. In just six days, Constitution DAO crowdfunded more than 4,500w dollars, and the fermentation of things far exceeded everyone's imagination.
However, due to the transparent and checkable data on the chain, Constitution DAO is basically an open auction. When the bidding price exceeded 4,000 w USD, Constitution DAO chose to give up, because the remaining amount was not enough to bear the document storage fee, etc. In the end, the copy was sold for 4,300 w USD deal. Afterwards, Constitution DAO opened the refund channel, and announced that all powers would be handed over to the community, and operations would cease; this experiment, which was recorded in history, finally came to an end.
As stated in the official statement: "This is a milestone event that shows the world that a group of ordinary people can use the power of Web3 to face a seemingly insurmountable goal and achieve incredible progress on an impossible timeline." The result of belief. We sincerely hope that Constitution DAO will inspire many others to use the power of Web3 to positively impact the world."
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Other inspired DAOs
AssangeDAO
Julian Assange, the founder of WikiLeaks, is wanted internationally for disclosing some black history and secrets of the US National Security Agency. AssangeDAO was established in mid-December 2021, shortly after the U.S. government won an appeal against a U.K. court ruling banning Assange’s extradition (assange could face 175 years in prison if extradited to the U.S.).
AssangeDAO was established to restore Julian Assange's freedom, which required raising funds for his legal defense and support. In a short period of time, AssangeDAO raised nearly 17,000 ETH, and because Assange's younger brother (half-father) stood on the platform, no one questioned the authenticity (V God also made a donation to support it).
However, due to his younger brother Gabriel Shipton's unreasonable dictatorial behavior at the auction (not going into details here), many private transfers without explaining to the community, and some irresponsible remarks, people feel that this is an exploit Assange's fundraising scam (or was it fooled by money in the middle?).
To this day, this is debated. If Constitution DAO opened the chapter of story DAO, then AssangeDAO poured cold water on the impulsive people in the upsurge——Different from NFT, which is mainly cultural and creative, DAO really needs to do things.
The DAO to be mentioned below is more like a real DAO.
BanklessDAO
BanklessDAO was established by the encrypted media Bankless in May 2021. It can be said to be the largest, most influential, and the closest DAO to a complete decentralized organization.
Although it was founded by the media, what it does far exceeds the content of traditional media. The goal of BanklessDAO is to derive the application of the de-banking financial system, and eventually advance to the "unbanked society". This goal is too ambitious and vague, so basically all Web3-related things can resonate with it. Decentralized and flat management attracts all kinds of people, such as novices, lawyers, researchers, developers, etc., as long as you have a good If you have an idea, you can find the people who resonate in BanklessDAO and act together. Of course, there is also a detailed financial system in it, and you can also find tasks that you are competent in and get benefits from it.
Image source: The SeeDAO
With development, BanklessDAO has 13 sub-unions including writing, finance, translation, research, operation, marketing, law, education, design, business, development, video, and data analysis. Discord has set up more than 200 channels, attracting More than 27000 users.
Attracting resonant users, everyone goes hand in hand for the goal, flat management, and good incentives. Obviously, BanklessDAO is already a "model" of DAO, and its model is also being referenced and emulated by many DAOs.
YGG DAO
YGG DAO is a DAO composed of players and investors established by the game guild Yield Guild Game (YGG), which makes profits by investing in GameFi and NFT.
Behind YGG DAO is a game studio based in the Philippines, founded by Gabby Dizon, who was part of the team that launched Axie Infinity and Yearn Finance Communities. The co-founders of the studio include Beryl Li, an entrepreneur from Cambridge University, co-founder of CapchainX, former chairman, and Owl of Moistness, a blockchain developer and one of the developers of the Axie Infinity algorithm.
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Image source: Zhihu@肖西
epilogue
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Image credit: @Cooopahtroopa
Some people even said: "DAO can replace large companies, but it is impossible to become the greatest company; because a great company must be composed of a few extraordinary leaders and a group of executives. And at least for now, the vast majority of DAOs are a Loose organization and centralized management are obviously more stable.”
Perhaps, in the future, DAO will usher in further innovation and development and become more diversified; perhaps, the DAO community will also incubate more diverse forms of operation and profit, bringing unexpected development to NFT in the longer-term future Space; perhaps, partial decentralization + top-level centralization is the best destination for DAO.
NFT Labs provides relevant information only and does not constitute any investment advice.
NFT Labs provides relevant information only and does not constitute any investment advice.
Twitter：@LabsNft
