Thread by @alexdphan

You’ve heard the word DAO thrown around

...but what's a DAO?

Bringing in more power to the people

The beginner's guide to DAOs (how it benefits you and the world) ↓

First, I recommend reading this for people w/ no context on DAOs

https://twitter.com/petergyang/status/1447605297808232448?s=20

A DAO stands for Decentralized Autonomous Organization

A group organized around a mission that coordinates through a shared set of rules

The set of rules can be changed through a voting process (w/ smart contracts)

It's the modern-day tech co-op

I look at it as a new form of accountability

Private companies are:
• Tight-knit
• Hierarchical
• Invite-based
• Sometimes not transparent

In DAOs, members are owners and have the power to vote/participate

Becoming a loose network that's open, transparent, and global

Why DAOs over other organizations?

1/ Companies today are built to optimize for-profit

Imagine having a say in working with value-aligned organizations

The point of money is to create value, not make more of it

DAOs shift gatekeeping to pure facilitation

Changing how we make decisions would change outcomes

Being Value driven>Financially Driven

DAOs make decisions towards their values as a strong priority

2/ DAOs are decentralized

Inspired by open-source collaboration

More transparency is better suited for grassroots organizations.

Image from @AnnikaSays

3/ Operational advantages

Ppl contribute digital assets to DAOs and join as members with a few clicks (w/ phone or browser wallet extension)

Blockchain tech makes the movement of assets occurs in seconds

4/ Streamline group decision-making

Through deploying blockchain-based voting schemes

DAO voting occurs on an ongoing basis, not just at predetermined times

Many DAOs apply systems for members to engage in digital voting

@viamirror @SnapshotLabs

Members verify the results of voting through the blockchain

It's more transparent, secure, and autonomous

Avoiding contested decision-making, fraudulent behavior, or simple mistakes

Members now assume a GREATER role in management

As a result, member inputs steer the direction of the DAO itself

5/ DAOs receive more information/feedback from a wider group of stakeholders

Members vote/deploy assets for a purpose or withdraw assets if they disagree

If a DAO doesn't serve a member’s purpose, they can receive back all or a portion of any contributed assets.

"It feels inevitable that tokens will eventually replace equity, and with it - so will the legacy legal structures that underpin them."- @Cooopahtroopa

Like a company:
• DAOs can operate a business
• DAOs can have owners
• DAOs can serve customers

Like a community,
• DAOs have a wide spectrum of participation
• DAOs can serve the DAO members

h/t @packyM

Decentralized projects will look more like communities

The DAOs that manage those projects will look more like companies

What we see now/the future:

• DAOs taking over centralized organizations
• Donating funds/voting how capital is allocated to various contributors
• DAOs for social purposes and events
• Pooling capital for investments
• Working groups/talent allocators

• Group chats → digital businesses
• Curating which NFTs have long-term value
• Sharing an outlet’s open agenda to spread awareness and news.

and more to come...

Ok, so how does this benefit you?

• Being a fan and contributing to projects right away
• More context in daily work
• Sharing individual insights across multiple communities
• Benefit before contributing to DAOs
• A stronger voice than ever in decision-making

• Be evaluated not by just one direct manager, but by the organization
• Geographical location will cease to be a constraint
• Broad/transparent equity ownership will be the norm

https://twitter.com/divine_economy/status/1423674134685388805?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1423674134685388805%7Ctwgr%5E%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fannika.mirror.xyz%2F9yxmN8Sh3_i43zgFWxQjNVMaL3vqNHGJ_JERr_sgEmk

I want to join! Which ones could I join?

Some you can join right now (free/require tokens)

@seedclubhq
@forefront__
@Uniswap
@FWBtweets
@scribeDAO
@MakerDAO
@prtyDAO
@humanDAO
@banklessDAO

h/t @Cooopahtroopa

Of course, there are also problems with DAOs, such as coordination, regulation, having the right tools, etc.

(A thread for another day)

We are still at the infant stages, but it will only get better over time.

h/t @pet3rpan_

Would love to hear your thoughts!

I try my best to simplify Web3 at least 2x per week.

If you enjoyed this, hit me up w/ a retweet and a follow @alexdphan

Stay Classy :)

Recap:

• DAOs are a new way of organizing ppl around shared goals

• The modern day tech co-op

• Value-driven, transparent organizations

• Open source and have several operational advantages

• Members have more power than ever

• Create the future of work