Post by account_disabled on Mar 10, 2024 5:43:16 GMT -4
DAO is the acronym for Decentralized Autonomous Organization, i.e. organizations, for profit or non-profit, that exploit blockchain technology to be autonomous and decentralized. Autonomy is achieved through the use of Autonomous Agents, software agents programmed and executed to carry out certain tasks without human intervention (a bit like computer viruses, but here they are called smart contracts and are used for automatic execution of the rules we have given ourselves). Decentralization indicates the absence of a hierarchy, replaced by coordination and voting mechanisms on decisions to be made, enabled by blockchain. The term DAO is also used to refer to the software used to manage organizations and which runs on blockchain networks.
Most DAOs run on the Ethereum network, but others leverage Polkadot, Cosmos, EOS India Mobile Number Data and Cardano. The first to conceive this idea was the co-founder of Ethereum, Vitalik Buterin, who in 2014 called them DAC (Decentralized Autonomous Corporations). In practice, whoever sets up a DAO issues native fungible tokens (typically adhering to the ERC-20 standard), which give some rights and utilities to the holders (sometimes you have to buy more tokens to have the right to vote). The founder of the organization, in most cases, decides to put them up for sale, so whoever buys them automatically becomes a member (in this case the DAO is called "permissionless"). Advantages and disadvantages of DAOs This technology-based approach to business organization has advantages: incorporation and management : there are technological tools which, compared to the incorporation of companies, simplify these procedures and do not require the notarization of third parties (it is true that it is necessary to have some technological knowledge); Accessibility : Barriers to entry are theoretically lower because anyone can become a member, although basic knowledge of the crypto world is needed.
Traditional organizations may have access criteria aimed at excluding certain types of people transparency : the activities of a DAO are recorded on the decentralized register and visible to everyone. In traditional companies, shareholders have visibility of the aggregate balance sheet at specific times of the year. Possible disadvantages of a DAO are: slowness : voting mechanisms can be slower than a board of directors or a CEO, so there is a risk of not being timely; quality of decisions : although the opportunity to vote is given to all token holders, the active members of the community may be few and perhaps not so informed about the implications of the decisions; legal recognition : it does not yet exist and therefore uncertainty reigns regarding future regulations. In Italy, setting up a DAO is possible, but there is no specific legislation. The legal form could be that of an LLC but there is the problem of the circulation of the shares incorporated in the tokens (the shares of an LLC, unlike the shares of Spas, are not, in fact, intended for circulation among the public).
Most DAOs run on the Ethereum network, but others leverage Polkadot, Cosmos, EOS India Mobile Number Data and Cardano. The first to conceive this idea was the co-founder of Ethereum, Vitalik Buterin, who in 2014 called them DAC (Decentralized Autonomous Corporations). In practice, whoever sets up a DAO issues native fungible tokens (typically adhering to the ERC-20 standard), which give some rights and utilities to the holders (sometimes you have to buy more tokens to have the right to vote). The founder of the organization, in most cases, decides to put them up for sale, so whoever buys them automatically becomes a member (in this case the DAO is called "permissionless"). Advantages and disadvantages of DAOs This technology-based approach to business organization has advantages: incorporation and management : there are technological tools which, compared to the incorporation of companies, simplify these procedures and do not require the notarization of third parties (it is true that it is necessary to have some technological knowledge); Accessibility : Barriers to entry are theoretically lower because anyone can become a member, although basic knowledge of the crypto world is needed.
Traditional organizations may have access criteria aimed at excluding certain types of people transparency : the activities of a DAO are recorded on the decentralized register and visible to everyone. In traditional companies, shareholders have visibility of the aggregate balance sheet at specific times of the year. Possible disadvantages of a DAO are: slowness : voting mechanisms can be slower than a board of directors or a CEO, so there is a risk of not being timely; quality of decisions : although the opportunity to vote is given to all token holders, the active members of the community may be few and perhaps not so informed about the implications of the decisions; legal recognition : it does not yet exist and therefore uncertainty reigns regarding future regulations. In Italy, setting up a DAO is possible, but there is no specific legislation. The legal form could be that of an LLC but there is the problem of the circulation of the shares incorporated in the tokens (the shares of an LLC, unlike the shares of Spas, are not, in fact, intended for circulation among the public).