WTF are DAOs?
DAOs are the engine powering Web 3.0 like:
• DeFi
• Dapps and
• NFT projects.
Still, what are they?
This is how you explain DAOs to your Friends and Family - without overwhelming them.
DAOs 101: building decentralized Organizations 🧵👇
DAOs are the engine powering Web 3.0 like:
• DeFi
• Dapps and
• NFT projects.
Still, what are they?
This is how you explain DAOs to your Friends and Family - without overwhelming them.
DAOs 101: building decentralized Organizations 🧵👇
0. What are DAOs?
The easiest explanation is that:
Decentralized Autonomous Organizations (DAOs), are self-governing organizations that enable groups of people to work towards a mutual goal.
But let's see what this means...⬇️
The easiest explanation is that:
Decentralized Autonomous Organizations (DAOs), are self-governing organizations that enable groups of people to work towards a mutual goal.
But let's see what this means...⬇️
1. Defining DAOs
What it means is that DAOs are:
• Decentralized = online, global
• Autonomous = self-governing - bylaws written in code
• Organization = people working towards common goals and shared values
Now, let's deconstruct these buzzwords...⬇️
What it means is that DAOs are:
• Decentralized = online, global
• Autonomous = self-governing - bylaws written in code
• Organization = people working towards common goals and shared values
Now, let's deconstruct these buzzwords...⬇️
2. D stands for Decentralized
DAOs are decentralized in many ways:
• Infrastructure
• Payments
• Workforce
• Governance
• Community
"Ok, but what do you mean by that?"
Haha, wait a sec, let me explain it properly 😅...⬇️
DAOs are decentralized in many ways:
• Infrastructure
• Payments
• Workforce
• Governance
• Community
"Ok, but what do you mean by that?"
Haha, wait a sec, let me explain it properly 😅...⬇️
2.1. DAOs have decentralized Infrastructure:
DAOs are powered by code that lives in the blockchain which means they can be accessed by anyone around the world.
And what types of blockchains? Ethereum, for eg 👇..⬇️
DAOs are powered by code that lives in the blockchain which means they can be accessed by anyone around the world.
And what types of blockchains? Ethereum, for eg 👇..⬇️
https://twitter.com/hey_bernie/status/1463851496240517126
2.2. DAOs have decentralized Payments:
As we know, the Ethereum network is constantly online, so are payments in its native currency, Ether ($ETH).
This means that DAOs can deal with any person or organization on the network too.
And what type of payments? Payroll for eg...⬇️
As we know, the Ethereum network is constantly online, so are payments in its native currency, Ether ($ETH).
This means that DAOs can deal with any person or organization on the network too.
And what type of payments? Payroll for eg...⬇️
2.3. DAOs have decentralized Workforce:
As they are global, DAOs can access labor anywhere in the world.
Some DAOs recruit actively, while others are open to contributions from anyone willing to put in their time and effort.
And how do we manage DAOs?...⬇️
As they are global, DAOs can access labor anywhere in the world.
Some DAOs recruit actively, while others are open to contributions from anyone willing to put in their time and effort.
And how do we manage DAOs?...⬇️
2.4. DAOs have decentralized Governance:
DAOs tend to have a simple structure where any member can propose an idea, and vote democratically on every decision.
While some decisions are taken within the DAO software, many take place in different conversations and for that....⬇️
DAOs tend to have a simple structure where any member can propose an idea, and vote democratically on every decision.
While some decisions are taken within the DAO software, many take place in different conversations and for that....⬇️
2.5. DAOs have decentralized Community:
DAOs use discussion forums as Discord and formal platforms to vote as Snapshot.
And this is how DAOs manage a decentralized Community of people.
Now that we get the D in DAOs, let's see what the A stands for...⬇️
DAOs use discussion forums as Discord and formal platforms to vote as Snapshot.
And this is how DAOs manage a decentralized Community of people.
Now that we get the D in DAOs, let's see what the A stands for...⬇️
3. A stands for Autonomous
This is where DAOs diverge from traditional organizations. Their infrastructure is software that can be run on any computer, anywhere in the world.
Like any organization, DAOs can set their own rules on purpose, membership, voting, and...⬇️
This is where DAOs diverge from traditional organizations. Their infrastructure is software that can be run on any computer, anywhere in the world.
Like any organization, DAOs can set their own rules on purpose, membership, voting, and...⬇️
4. O stands for Organization
...to get things done, we've have always organized ourselves into groups, teams, companies and other forms of collective action.
That's why some DAOs are groups of developers, investors, companies, charities, etc
"Ok, but why do we need DAOs?"..⬇️
...to get things done, we've have always organized ourselves into groups, teams, companies and other forms of collective action.
That's why some DAOs are groups of developers, investors, companies, charities, etc
"Ok, but why do we need DAOs?"..⬇️
5. Why do we need DAOs?
We don't necessarily need them.
They've emerged as a way to create incentives among people who want to work together towards common goals.
Let's see the following:
Imagine you want to influence the company you work for...⬇️
We don't necessarily need them.
They've emerged as a way to create incentives among people who want to work together towards common goals.
Let's see the following:
Imagine you want to influence the company you work for...⬇️
6. The problem
The question is how can you do it?
Until today the only way in which we can have a say in any Organization's future is by being a Shareholder or Top Executive, right?
Having shares of a Company is the best way to ensure you can have a say on its future...⬇️
The question is how can you do it?
Until today the only way in which we can have a say in any Organization's future is by being a Shareholder or Top Executive, right?
Having shares of a Company is the best way to ensure you can have a say on its future...⬇️
7. Understanding the problem
...it grants you access to meetings where Executives discuss the Company's future, and vote on different proposals.
But we, as workers of that Company, we can't attend those meetings, having no say about our collective future.
But why?...⬇️
...it grants you access to meetings where Executives discuss the Company's future, and vote on different proposals.
But we, as workers of that Company, we can't attend those meetings, having no say about our collective future.
But why?...⬇️
Because there are no mechanisms to grants us access to it.
Some of the best companies have tried. They give us shares, some Equity stake, etc. Still, it has never been enough.
We can't have a real influence unless we could vote...⬇️
Some of the best companies have tried. They give us shares, some Equity stake, etc. Still, it has never been enough.
We can't have a real influence unless we could vote...⬇️
8. The solution
And this is where DAOs come in.
They solve this by allowing each DAO worker (aka contributor) to have Tokens to be able to vote on proposals.
And what type of proposals?
Proposals like how to use the DAO's money, the Mission, Products to Develop, etc...⬇️
And this is where DAOs come in.
They solve this by allowing each DAO worker (aka contributor) to have Tokens to be able to vote on proposals.
And what type of proposals?
Proposals like how to use the DAO's money, the Mission, Products to Develop, etc...⬇️
9. Tokens
"But Bernie, what are Tokens?"
Tokens are the topic of our next thread but for today, let's assume they are like Shares of the DAO ok?
It gives certain benefits to the ones who hold them like profit sharing, voting, etc.
"And what types of DAOs exist?"...⬇️
"But Bernie, what are Tokens?"
Tokens are the topic of our next thread but for today, let's assume they are like Shares of the DAO ok?
It gives certain benefits to the ones who hold them like profit sharing, voting, etc.
"And what types of DAOs exist?"...⬇️
10. DAOs Use Cases
• Investment - ConstitutionDAO - @ConstitutionDAO
• Protocol - Uniswap - @Uniswap
• Service - DeveloperDAO - @developer_dao
• Project - SeedClub - @seedclubhq
• Community - Friends with Benefits - @FWBtweets
More examples here:
• Investment - ConstitutionDAO - @ConstitutionDAO
• Protocol - Uniswap - @Uniswap
• Service - DeveloperDAO - @developer_dao
• Project - SeedClub - @seedclubhq
• Community - Friends with Benefits - @FWBtweets
More examples here:
https://twitter.com/Cooopahtroopa/status/1463658707984674816
11. Wrapping up
DAOs are like a company where the Company's shareholders are the workers who, by holding a Token (like Shares), can submit and vote on different proposals.
This way workers can have a say in the DAO's future and see their goals aligned with the DAO's goals..⬇️
DAOs are like a company where the Company's shareholders are the workers who, by holding a Token (like Shares), can submit and vote on different proposals.
This way workers can have a say in the DAO's future and see their goals aligned with the DAO's goals..⬇️
If you want to read more about how the World is being transformed by DAOs, you can read here:
blog.aragon.org/15-ways-the-wo…
blog.aragon.org/15-ways-the-wo…
If you're here -- Thanks for reading.
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I write about:
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Want to learn more about Web 3.0?
Then follow me @hey_bernie
I'm writing a thread like this every day until year-end.
Want them in your email? Then subscribe the newsletter 👇
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I write about:
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Index:
0. What are DAOs?
1. Defining DAOs
2. D stands for Decentralized
2.1. Decentralized Infrastructure
2.2. Decentralized Payments
2.3. Decentralized Workforce
2.4. Decentralized Governance
2.5. Decentralized Community
3. A stands for Autonomous
4. O stands for Organization
0. What are DAOs?
1. Defining DAOs
2. D stands for Decentralized
2.1. Decentralized Infrastructure
2.2. Decentralized Payments
2.3. Decentralized Workforce
2.4. Decentralized Governance
2.5. Decentralized Community
3. A stands for Autonomous
4. O stands for Organization
5. Why do we need DAOs?
6. The problem
7. Understanding the problem
8. The solution
9. Tokens
10. DAOs Use Cases
11. Wrapping up
6. The problem
7. Understanding the problem
8. The solution
9. Tokens
10. DAOs Use Cases
11. Wrapping up
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