DAO: A company model with no central leadership
Let's learn about everyone's okay word, DAO - the Decentralized Autonomous Organization. Not to be confused with the DOW, which is like 30 stocks that are crashing.
TL;DR: Allen got fed up at DAO explanations and made 10 graphics to explain DAOs, in rainbow color.
Hello Professionally Curious One!
I had a hard time explaining DAOs beyond the conventional explanation of a DAO. So I made some graphics for you to learn about DAOs really quick.
As always, you can find TL;DRs and graphics ranting explaining the concepts.
In Case You Missed It
Sections You Can Skim To:
The entire thing is skimmable.
What is the mission?
Who owns it?
What is the organizational structure?
How is initial funding done?
How are decisions made?
How do you get involved?
p.s. there are 5 major types of DAOs:
Social DAO - Like a club.
Investment DAO - Like a VC fund.
Protocol DAO - It’s an IPO.
Commerce DAO - Shares in a real business.
Media DAO - Uh … Reddit, but more focused.
How do you advance up in the org?
How are key functions executed?
Are you a Big 4 CPA/CISA?
Want to leave?
p.s. it’s evolving into a collective. ;)
How are you compensated?
Closing Comments
The current standing definition is “An entity with no central leadership”.
Based on my graphics, and that description, a DAO is basically how do we run a company quite using pure democracy, where everyone has to cast a vote for it to move, and the members who are part of the community will “Give back”.
Using this lens, it sounds like a DAO only works if:
The mission is niche, reasonably achievable, and people believe in it
Scaling in sheer members is not the core focus (too many people means too many unmet needs)
You have a core group that is openly contributing that sets the cultural tone of the community.
Dissidents is okay, and there must be mechanisms to fork (carve off / breakaway) from the group since this entire thing is optional participation.
It’s basically a student organization or a trade org, or hell even a union. The first generation is probably pumped, the second is following a shadow, and whoever the third generation has “to go through the motions” before the zombie org of the 4th generation.
I guess a question is, how does a DAO end, or when is it allowed to end?
Anyway, TPAN and I tossed a crazy idea of starting a Web3 Writer DAO, focused on supporting first-time non-technical micro-contenter creators (0 to 10,000 followers).
It’d be a Media DAO. I think.
No idea where to begin, but it’s the energy that counts for now!