In November, an online group called Spice DAO purchased a copy of Alejandro Jodorowsky’s “Dunes” “Director’s Bible”. The group paid nearly $3 million at the auction. This is about 100 times the estimated price of a book. DAOFor “Decentralized Autonomous Organization” (and pronounced “Autonomous Organization”), it is an immediate pool term in the crypto world for many who have their funds to perform a particular task. They are “digital flash mobs with money”, DAO Called Friends with Benefits (FWB), I told me, and in recent months they have been comparable to non-fungible tokens, or NFTs, as the most Hyped concept in blockchain technology. Spice DAO has launched its own cryptocurrency token called SPICE (a reference to the mysterious substance of the “Dune” SF universe) and sold it to raise over $700,000 to buy books. Did.The rest of the price is personal DAOCo-founder Soban Saqib. The group’s plan was to produce a unique version of the film, in which creative decisions were voted by the token owners. There was only one problem. Owning a vintage art book is not exactly the same as owning the intellectual property of the “dune”. The DAO Members didn’t have the license to make a version of Jodorowsky’s movie more than they had to make the next Marvel superhero movie.
Spice DAO’s mid-burnt business is just one of the recent stories touted as evidence of the recklessness of the crypto economy. In November, a group called Constitution DAO raised $47 million in cryptocurrencies and bid on one of the 13 existing copies of the US Constitution. He then lost the auction to Citadel CEO Ken Griffin.other DAO■ Announced plans to purchase a golf course (LinksDAO) and NBA team (Krause House DAO). One was called City DAO and bought land in Wyoming.But these sensational stories only give a partial picture of the rapid growth DAO phenomenon. A DAOBy definition, it’s just a business structure similar to LLC or C-corp. These usually consist of custom cryptocurrencies or tokens and online community spaces such as chat rooms on the platform Discord. The community conducts internal discussions and uses tokens to vote for decisions. For apps such as snapshots, it’s a way to put paper in a cardboard box and elect a class president. The more money you put in, the more pieces of paper you can get. DAOs promises that organizational decisions are in a broad group of members, not, for example, the small elite of a company’s board of directors. In the quiet of the Internet, this structure is promising, building an ecosystem of digital startups outside Silicon Valley.
the history of DAOs began unknowingly when an organization called DAO was launched in April 2016 and raised about $150 million worth of Ethereum currency in exchange for tokens called DAO. DAO’s goal was to act as an investment company and redistribute funds to profitable companies and projects. The organization’s token represents a vote for the investee. Theoretically, like stock dividends, profits are returned to token holders, but outside the regulated market. But in June 2016, when hackers sucked up about one-third of the money, Dao exploded, and the following year, the SEC could face the same regulations as crypto tokens like DAOs. Announced a survey that discovered that.
“A year and a half ago, I thought I needed to restart DAO in a way that complies with US law,” Aaron Wright, a law professor and co-founder of Tribute Labs, told me.Tribute supports the network of DAOFlamingo to collect NFT art, neon to invest in metaverse assets such as digital fashion works and avatars.All members of the tribute network DAOIs an accredited investor and tokens can only be transferred to other members. Together, Tribute’s DAO network has raised about $110 million in Ether. DAO Proponents argue that such groups allow amateurs to participate in organized venture investments. “We are witnessing the emergence of this collective spirit, not the wisdom of the crowd, but the wisdom of a smaller, curated crowd with in-game skin,” Wright told me.He believes it DAO Capital could replace high-tech venture capital, music executives, Hollywood producers, and more to fund new projects such as companies, albums, and blockbuster movies.
Another subset of DAOs is less interested in attracting investors with excess capital than digital workers who can afford the time and energy. For example, FWB is an online community operated by the currency of the same name, acting like a digital VIP lounge for creatives. To participate, you need to purchase tokens. Members chat on Discord, participate in physical meetups, and work with them to develop projects such as cryptocurrency ticketing apps and new drinks. The result is a kind of decentralized brand identity. Holders vote for code of conduct approval, monthly budget approval, and collaboration with other businesses. Blockchain records are transparent, so the results of all votes are public. (I’m using the newsletter I started now DAO As an experiment of editorial democracy, decide which article to entrust. Anwar, head of the FWB’s “Community and Culture,” described the group as a “creative incubator” and participated “as if in a hurry for fraternity.” If it sounds a bit vague, it may be the result of the spirit of decentralization: it’s hard to stick to one mission when no one is making a decision.
In a recent interview, Ethereum co-producer Vitalik Buterin said: DAO become DAO..You need DAO To do something. But the ultimate result of DAO FWB is the community itself and has its own challenges. Sarah Moosvi is a co-founder of aGENDA dao, a group that supports transgender and non-binary digital artists working on blockchain. She told me that the decentralized model is, in a sense, “just as flawed” as the traditional corporate structure. DAOIn theory, there is no boss, but as Moosvi states, organizations need to decide who will be rewarded for their work, or “sweat equity.” If the reward comes primarily through internal tokens, we can only support those who do not need immediate monetary compensation, much like a company pays scrips.
Several large startups have begun experimenting DAO Governance. Last August, the NFT Marketplace SuperRare sent users a token proportional to the amount of transactions on the platform. (Imagine if Twitter rewarded the shape of a stock based on accumulated retweets.) Tokens were used to select users who could open a new storefront on the platform. .. Other crypto companies such as Uniswap, crypto exchange, and Ethereum Name Service, which provides domain name .eth, have created their own governance tokens for their users. The philosophy from the user’s point of view is “I expect some reward for trading on your platform and getting you to take part of my activity”. Theoretically, these governance tokens are not intended for financial products like company stocks, but they do not prevent many users from plunging in the secondary market.
for now, DAO Tokens have more symbolic weight than actual authority. Most people are interested in moving digital assets. However, some are interested in transforming cryptographic internet utopian socialism into the real world.For example, the cabin DAO I started to manage a series of homes outside Austin, Texas. Group co-founder Jonathan Hillis had previously quit his job at Instacart and built a house in the countryside. He kept his friends there, and they had the idea of starting a residence program for other tech creators. “we DAO.. The DAO The tool was the best tool to achieve what we were trying to achieve, “Hillis told me.
The group created tokens and sold them to a crowdfunding budget, allowing token holders to vote on who they would grant their right to housing. One attendee, Julian Weisser, later stayed in the cabin to help create the Constitution DAO. Currently, there are about 280 token holders who can vote for the future of the cabin. Hillis describes the organization as a “distributed city” and aims to build spaces around the world and connect them through digital tools. Currently, there is a subgroup “Guild” working on various parts of the mission.Similar to many DAOs, the cabin still looks a bit fantasy — an emerging community looking for an exit for exploding energy. “Ultimately, the infrastructure disappears,” says Hillis, with any technology. Finally, DAO The framework is less important than what the organization actually achieves.