Companies without a boss, DAO
One of the terms that has come to the fore in the crypto money world lately is DAO. The term DAO, which literally means decentralized autonomous organizations, actually had its first big break in 2016. The team of “The DAO”, who wanted to decentralize the concept of venture capital, lost $ 50 million of its funds with the hacking of the smart contract, and started a series of events that would change the whole ecosystem, especially their token, The DAO, then Ethereum.
The DAO token was delisted by Exchanges, meaning it was delisted and disappeared. The Ethereum community has “simply” rewinded the Ethereum blockchain to get the funds back, doing something they perhaps shouldn’t have done*. The crowd who did not accept this rewind said, “No, what is stolen, we do not find the rewind right,” and they took the name Ethereum Classic, and thus the project known as ETC coin was born. Ironically, Ethereum Classic was attacked at least three times in the following process. rewinded”. After all these events, although the first DAO concept was unsuccessful, the door to a new world was opened.
DAOs are actually as I wrote in the title;
Able to take decisions independently from the central authority,
Beneficial to the community that is a part of it
even a legal
They are unclaimed companies that can acquire property and employ workers.
Although the last two articles I wrote are valid only in Wyoming, it would not be wrong to think that such structures will gain popularity and gain legal recognition in the future.
What does it take to be part of DAOs?
Currently, the most popular way to become a part of DAOs is to own governance or governance tokens. My personal opinion is that this is not the best method. Because if the management of an organization that is still spreading is opened to those tokens in a very early period due to the tokens, this model would not be very decentralized, would it? We hand over the DAO to the management of the small overlords who collected the tokens early on. DAOs are still an emerging field and pregnant with many innovations. In addition, it is worth noting that Vitalik Buterin, the founder of Ethereum, who is one of the most prominent people in the industry on tokenless governance, has recently written an article, that is, he has been thinking about it.
Sectors Suitable for DAO Model
We can give two examples of areas that will become DAOs by participating in the management with the token. One of the first and easiest examples would be to DAO the taxi plates. Another area that will turn into a DAO with tokens could be artworks. I will try to explain both.
Because taxi plates are like NFTs, each one and unique.
Taxi license plates are very valuable and difficult to obtain individually.
Taxi plates provide a serious income.
Most importantly, there is a central organization that manages the community with taxi license plates.
How will it work?
We will tokenize taxis that are difficult to purchase personally by normal means. For example, let’s consider 1 taxi as 1 million tokens. Owners of 1 million tokens will periodically earn the income earned by a taxi through a smart contract. Can’t you buy 1 million tokens and own a taxi? Then buy 100 tokens and share the value that the taxi will produce in proportion to it. In addition, token holders can determine how many passengers the taxi will take, how many trips they will take, how many taxis will work on which route, and the salary to be given to the working driver. What happened in TaksiDAO as a result? Revenue has been democratized, decentralized, managed by more people, decision-making mechanism has become more dispersed, and intermediaries have disappeared. Apart from this, more people will have a say in the pricing of the taxi plate. It will be bought and sold by thousands of people in the free market.
Because it is very valuable like taxi plates and can be reached by few people. For example, imagine we tokenize the Mona Lisa and present it to people. I know this is a very extreme example. Those who cannot get Mona Lisa get Mona Lisa token. Holders of these tokens will determine in which museum the painting will be exhibited. They will share in the income obtained from the exhibition, and they will be partners in both profit and loss in case the price of the Mona Lisa painting increases or decreases. They won’t trust anyone here either, because in the computer world, code is the law.