Roast Boy Creators Alliance brings you Understanding DAO Governance in One Article
DAO governance is not a new concept. In the field of encryption, this concept is highly respected. The field of DAO is also a very hot concept at present, especially after the development of DeFi, the ecology becomes more and more prosperous, and the demand for DAO becomes more urgent.
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The concept of DAO governance
The English spelling of DAO is Decentralized Autonomous Organization, which translates to: decentralized autonomous organization. DAO is an organizational form derived from the collaborative behaviors of co-creation, co-construction, co-governance, and sharing, which are spontaneously generated by groups that have reached the same consensus, based on the core idea of the blockchain and practicing the characteristics of decentralization.
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The Emergence of DAO Governance
The relatively formed DAO governance started from the DAO in 2016. The concept of DAO has been in everyones field of vision for almost 5 years, covering a complete bull-bear cycle. After the DAO, Aragon, one of DAOs leading projects, raised 275,000 ETH in 2017, and DAOStack also raised $30 million in 66 seconds in 2018. It can be seen that the DAO field has attracted a lot of attention in the encryption field. Yes, the market prospect is generally recognized. DAO is a new form of social organization conceived by people based on the blockchain network. Through the smart contract of Ethereum, everyone can raise funds and issue Token on the Ethereum network, and participants who hold Token can govern the project. No permission required, everyone is equal, code is law.
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The Ideal State of DAO Governance
In the conceived and ideal DAO system, management is coded, programmed and automated. Code is law (code is law), this is the purpose pursued by the encrypted world, the organization has changed from pyramid to distributed, power has changed from centralization to decentralization, management has changed from bureaucracy to community autonomy, and organization Corporations are no longer needed to run, but instead highly autonomous communities.
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Challenges of DAO Governance
DAO governance is not a simple matter, and the design of DAO is very complicated. When designing the operation mechanism of a DAO, there are many factors that need to be considered and analyzed. It needs to have organizational goals and organizational culture that can reach consensus with strangers, and have a system that includes creation, governance, and incentives that can reach consensus with strangers. system of rules.
The development of DAO in the past few years is actually very limited, the degree of participation is not high, and low efficiency is still the main problem facing DAO governance. The willingness of community users to participate in governance does not seem to be mobilized. DAO governance is more like a consumable, which only consumes our handling fees, and we don’t seem to get much from it. Currently, the most widely used DAO application is Snapshot, a relatively simple voting governance tool. The application of DAO is still relatively limited.
However, DAO is still a field worth looking forward to, and DAO is in line with the spirit of the blockchain. The current DAO is still in its infancy. Regarding the exploration of DAO governance, there has not been a better solution, but we believe that with the development of technology and the innovation of ideas, we believe that DAO will be the future governance of the encryption field. mainstream.
