Decentralized autonomous organizations (DAOs) are decentralized venture funds that operate through smart contracts.
Here, the financial transactions and rules are encoded on a blockchain, removing the need for a central governing authority.
Contrary to the centralized venture, DAO does not have a hierarchy system. It does not rely on the CEO to pass orders down the line but instead smart contracts to complete actions.
The idea of DAO was first conceptualized in Y 2015 by a team called ‘slock.it.’ Ethereum was conceived by Vitalik Buterin just a few months before.
Ethereum was still in its infant stage. In May 2016, the ‘DAO’ was launched and it became a hot topic within a few days. The concept was new and creative, and people were excited.
The DAO had a creation period during which people could exchange Ether with DAO tokens. People were receiving 100 DAO tokens with one Ether.
The creation period was a massive success as the platform collected 12.7 Ether, making it the biggest crowdfund ever.
The decentralized platform would allow anyone to pitch their idea to the community to receive funding. Anyone with DAO tokens could vote on those ideas and receive rewards if the projects turned into a profit.
Today, billions and billions of dollars reside in multiple smart contracts across the Ethereum ecosystem. According to DeFi Pulse, the Top 3 projects Maker, AAVE and Compound combined hold about $26.5-B of Ethereum. They were Key in setting up a healthy ecosystem in the long term, which now is thriving.
In the future, people’s income will be a mix of things be it something we do for entertainment e.g., play games, some kind of traditional work e.g., bounties or contracts or the things that cover a small percentage of the population e.g., investing and passive income.
In this new future opportunities will be more visible and switching costs between jobs will be lower. Further, work will be reduced down into more atomic units, and the entire world will be unified under a single workforce with access to all opportunities.
We will witness new opportunities based on our on-chain history, ownership and reputation, and we will be matched to contribute where we have the best advantage.
In summary: a DAO is created by a group of crypto wallets controlled by individuals and other organizations that executes all its movements through code, making it possible to manage assets and votes safely without the need for underlying legal or traditional banking setups.
Have a healthy, prosperous weekend, Keep the Faith!