Author name: @nobumei (https://twitter.com/nobu_mei)
<aside> 💡 This page explains about DAO.
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In the previous sections, we have explained dApps. While some dApps are developed by joint-stock companies, most are operated by DAO. This section deals with DAO, a new organizational structure.
DAO vs Company. Source: Aragon
Around the latter half of 2021, we began to hear the term "DAO" more and more both domestically and internationally. DAO refers to an autonomous decentralized organization, and is one of the indispensable elements when discussing Web 3.0.
<aside> 💡 DAO = Decentralized Autonomous Organization
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Autonomous decentralized organization is an unfamiliar term, but if we break down its meaning, it means the following:
The most famous DAO is Bitcoin. Bitcoin is a decentralized system that functions based on the rules engraved in the protocol without any control or commitment from anyone, and in which human will does not intervene. Bitcoin is a decentralized system that is not controlled by anyone, and is composed of nodes built by multiple people to achieve Bitcoin's goal of building an economic system that is not controlled by a centralized authority.
In other words, Bitcoin is an organization with a central mechanism that is autonomous and decentralized and surrounded by people. Conversely, a corporation is an organization with management in the center and people around it, while an AI or robot is an organization in which there are no workers.
DAO is an organization with an automatic center and people around it.
DAO grows by creating a community around the mechanism | consome
When considered apart from the world of Crypto, the small cells that make up human beings and natural ecosystems are also autonomous decentralized organizations that function based on certain rules and can function without human intervention. Therefore, DAO can be seen as "a means of bringing human-created software back to the same level as natural phenomena.
The creation of the DAO organizational form makes it possible to operate projects that until now have been highly public but not profitable and therefore not sustainable, and which NPOs and other organizations have been forced to operate through donations. This is very compatible with OSS projects.
For example, Gitcoin, a donation platform that supports OSS development, temporarily stores collected donations in a liquidity pool and redistributes them through a mathematical allocation system that does not involve human consciousness so that more donations go to projects with high public value. Donation companies can donate as little as the very small amount of 100 yen level, and you can kind of feel the future GAFA eggs rolling around! Gitcoin distributes a governance token called GTC, which manages funds and provides a governance framework for participating in key ecosystem decisions such as fund allocation, matching pools, and grant distribution.
<aside> 💡 [Column] Bitcoin's Genesis Block The first block of Bitcoin is called Genesis Block, and the string "The Times 03/Jan/2009 Chancellor on brink of second bailout for bank" is written on it. This is a quote from the headline of the January 3, 2009 issue of The Times magazine in the UK, and from this headline we can read the design philosophy of Bitcoin.
At the time in 2009, the global economy was in great turmoil due to the collapse of Lehman Brothers. The headlines criticized the centralized control of the financial system by banks. Bitcoin was developed with the goal of operating an economic system that is not controlled by such centralized power through decentralized management.
This idea has been taken over as a fundamental concept of Web 3.0.
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