🏬 Companies with no leaders
Unlike traditional organizations, a Decentralized Autonomous Organization (DAO) has zero central leadership or hierarchical structure.
Today's Highlights
- DAOs
- Blockchain jobs - a listing of fresh jobs related to web3/blockchain/crypto.
- In Other News - a few interesting developments we're tracking.
DAOs
Currently, big organizations and companies such as Apple and Microsoft have central and hierarchical leadership such as a CEO, then a board of executives, and then so on. It has been this way since the concept of a corporation became prominent. But since web3 is becoming the next big wave in the evolution of the internet, its primary promise of decentralization and personal ownership of data has brought in the rise of Decentralized Autonomous Organizations (DAOs).
A DAO is an entity that has zero central leadership or hierarchical structure. All decisions get made by the entire community that is organized around a determined set of rules enforced on the blockchain (smart contracts). An individual participates in a DAO by usually having ownership of a token.
A famous example of a DAO is ConstitutionDAO. All DAOs have a mission whether it be political, charitable, or to do something as random as buying a copy of the US constitution, which was, in fact, the exact purpose of ConstitutionDAO.
In this DAO, when a person buys $PEOPLE (the token for ConstitutionDAO), they buy the right to vote on future decisions. For example, once they buy the constitution, all the $PEOPLE holders will get to vote on what to do with the copy. If they give it to a museum, they might vote on what text it should say next to the constitution. If there are funds left over, the $PEOPLE holders get to decide what to do with them.
Ultimately, the DAO raised almost $47 million in Ethereum (ETH), but their max bid was $43 million in the auction for the copy of the constitution. They were not able to win the copy due to a billionaire investor purchasing it for $43.2 million. Since they failed their mission, ConstitutionDAO does not exist anymore, and everybody who bought $PEOPLE token can redeem them for Ethereum as described in a previously established smart contract.
Since May 2021, the number of DAOs has increased from 700 to 6,000. The most popular DAO currently is Uniswap with a treasury of $1.7 billion. Also, a leaked copy of a US bill concerning cryptocurrency has DAOs listed as a key concern.
The future of web3 is certainly exciting and as it evolves, DAOs will surely continue to grow at a rapid pace that could potentially change how companies/organizations are run forever.
💡 Blockchain Jobs
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Mercuryo
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PARSIQ
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StarTerra
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AP Capital
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In Other News
Tom Mitchelhill
Jack Schickler
