At a basic level, such a stance makes sense. After all, decentralized finance (DeFi) is taking off starting from the idea that it is the inevitable successor of the traditional financial system. Moreover, NFTs are experiencing enormous success in a similar way. It is thus not surprising that a growing number of experts consider decentralized autonomous organizations, or DAOs, with their organization rules transparently programmed on blockchain, as the future of work. DAOs are seen as new structures that will replace the obsolete hierarchical ones of centralized companies. Yet, among non-experts, DAOs are either unknown or barely understood. Mainstream media, financial experts and regulators have occasionally shown minimal knowledge of DeFi and NFT, but DAOs remain largely a foreign concept – perhaps best known to blockchain novices for the infamous “The DAO” hack. , a first DAO investment experiment that collapsed in 2016.
DAOs are the ability of blockchain technology to provide a digital and secure ledger that tracks financial interactions on the internet and counteracts forgery through the concepts of timestamp, of trust and its presence in a distributed or non-centralized database. In recent years, DAOs have probably taken more steps forward in terms of development than any other blockchain industry. Many DeFi and NFT projects are governed by DAO; a large and growing percentage of the total market capitalization of approximately $2 trillion in cryptocurrencies is managed by these facilities. The tools and features have seen significant updates thanks to the work of organizations such as Colony, Aragon, and Coordinape.
“There is a group of Generation Z people who feel ripped off by late-stage capitalism,” said Kevin Owocki, CEO of the DAO-led grant organization Gitcoin. “We have inherited this economy where climate change is a big problem, disinformation is a big problem, where we don’t trust our institutions and have a new culture […] which is built around needs, values and thoughts. of our generation “.
Ultimately, experts agree that the best way to generate value from this emerging trend is through active participation – what the investor known as Tracheopteryx has called “contribution mining”.
There are a number of guides on how to get close to joining a DAO, but according to Tracheopteryx the process isn’t as complex as, say, interacting with a DeFi contract – an investor just needs to find their favorite field and then get to work.
