DAO

Nature

DAO is a form of organization that encodes the management and operating rules of an organization on a blockchain in the form of a smart contract, thus operating autonomously without centralized control or third-party intervention. DAO promises to be a new and effective organization for dealing with uncertain, diverse, and complex environments.

DAO has the characteristics of full openness, autonomous interaction, decentralized control, complexity, diversity and emergence. Different from the traditional organizational phenomenon, DAO is not subject to the spatial constraints of the physical world, and its evolution process is driven by events or goals. It forms, spreads rapidly and is highly interactive, and automatically dissolves with the disappearance of goals.

DAO has the following characteristics

1. Distributed and decentralized

DAO does not have a central node or hierarchical management structure. It achieves organizational goals through bottom-up interaction, competition and collaboration among network nodes. Therefore, business exchanges between nodes and between nodes and between nodes and organizations in DAO are no longer determined by administrative subordination, but follow the principles of equality, volunariness, reciprocity and mutual benefit, and are driven by each other's resource endowment, complementary advantages and win-win interests. Each organizational node will cooperate effectively under the incentive mechanism of token according to its own resource advantages and talents, thus generating strong synergistic effect.

2. Autonomous and Automated

In an ideal DAO, management is coded, programmed, and automated. "Code is law", the organization is no longer pyramid but distributed, the power is no longer centralized but decentralized, the management is no longer bureaucratic but community autonomy, and the organization operation no longer needs companies but is replaced by highly autonomous communities. In addition, because THE DAO operates under the operation standard and cooperation mode jointly determined by stakeholders, it is easier to achieve consensus and trust within the organization, which can minimize the trust cost, communication cost and transaction cost of the organization.

3, Organized and ordered

Relying on smart contracts, the operating rules, responsibilities and rights of participants, and reward and punishment mechanisms in the DAO are open and transparent. In addition, through a series of efficient autonomy principles, the rights and interests of the relevant participants can be precisely differentiated and dimensionally reduced, that is, to match the corresponding rights and benefits to those individuals who make efforts, contributions and responsibilities, so as to promote industrial division of labor and equal rights, responsibilities and interests, so as to make the operation of the organization more coordinated and orderly.

4. Intelligence and Tokenization

DAO to encapsulate the bottom support all DAO and its derivative application infrastructure - Internet based protocols, block chain technology, artificial intelligence, big data, Internet of things, such as for technical support, with digital and intelligent of the collaborative governance under the conditions of the chain, chain management means, changed the traditional way of dissecting and artificial type management, Realize the intelligent management of the organization. Pass certificate (token) as the DAO in the process of governance important incentives, will organize the elements (for example, organization, knowledge, events, products, etc.), digital access card, so as to make the monetary capital, human capital and other elements of capital to fully mix, to better motivate the organization's effectiveness and value flow.

Welcome to DAO

For the DAO, there must be three basic elements:

1. Have organizational goals and organizational culture (organizational mission, vision and values) that can reach consensus with strangers.

2. Have a rule system that can reach consensus with strangers, including creation, governance, incentive, etc., and this rule is placed on the chain through blockchain technology.

3. Have tokens that can form interest association with all participants to achieve full staff incentive.

WHAT

DAO is the abbreviation of Decentralized Autonomous Organization, which is an organizational form derived from the core idea of blockchain (collaborative behavior of co-creation, co-construction, co-governance and sharing spontaneously generated by groups with the same consensus). Is a subsidiary product of blockchain after it solves the problem of trust between people.

DAO is an evolutionary version of the organizational form of company, a revolutionary evolution in the history of human collaboration. Its essence is a form of application of blockchain technology.ultimately responsible for governing DAO.