In 2021, imagine the work situation in the next 5 years - no supervisor, no hierarchy, no annoying "Dingding", decisions are automatically executed by code algorithms...

The "company" ceases to exist and becomes a community, members can be anonymously distributed all over the world, and can hold "company" shares (tokens) to influence the business.

Where have traditional companies gone?

The "company" we often refer to actually refers to a profit-oriented joint-stock company. This organizational form has emerged and emerged since the age of great navigation in the 17th century, and has evolved into a corporate form that dominates capitalist countries.

Entering the more intelligent 21st century, a kind of enterprise organization structure with decentralized power and no central authority is being fermented and formed on the basis of blockchain technology. It has a collective name - DAO, Decentralized Autonomous Organization,The core is to execute and automate organizational tasks by smart contracts on the chain, and people only need to complete the discussion and voting work off the chain.The completion efficiency has been greatly improved, and the spring of being a worker is coming!

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Wyoming recognizes DAO as a limited liability company (LLC)

Also on July 21, MakerDAO, which issued the US dollar stable currency DAI contract, took a braver step. The founder stated that he would dissolve the foundation in the next few months and hand over the projects that have been in operation for many years to the community management. Members provide corresponding remuneration to realize the decentralization of real decision-making execution.

This makes us have to ask the first question, is decentralized collective intelligence really better than centralized decision-making?

Further, would you choose to trust computer algorithms, or humans?

Corporate forms similar to "self-governing organizations" are not unknown in history.

After the British Industrial Revolution, due to the rapid accumulation and expansion of capital, a large number of commercial organizations adopted self-government or expanded partnerships as the organizational form of enterprises. However, its individual stability is not high, and most members usually quit the company after a short period of time. This also prompted the United Kingdom to introduce the "Joint Stock Company Act" in 1884 to stipulate the liability clauses of shareholders.

Autonomy brings more uncertainty. Although Britain's "Brexit", which triggered world-class democratic discussions, was approved by 51.9% of the people, it brought huge economic losses and EU debts, and also led to the division of Scotland and Northern Ireland.

In a decentralized world, smart contracts are not omnipotent, and the collective opinions of currency holders are also easily influenced by authoritative speech and social media. If the discussion on the content of the DAO proposal is secretly manipulated and guided, especially by those who hold the most tokens, the results of the voting will also be unfair-this is definitely a result that no one wants to see.

In the case of blockchain DAO, for example, after Synthetix handed over the decision-making power to a committee composed of multiple people, there were many problems that no one was responsible for, which directly affected the development of the project, and the founder had to return to the role of leader .

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So what is the significance of the existence of DAO?

Human beings first invented the organizational name "company" in order to be able to unify vision, coordinate actions, and maximize benefits by a few leaders and a majority.

In the case that the purpose remains unchanged, in order to minimize human error, the specific execution is handed over to more "smart" codes and algorithms for execution. People only need to be responsible for investigation and early voting. The greatest practical significance is the realization of benefits. The way is more transparent, fair and trusted.

You can imagine the form of DAO as an automatic system that operates according to set rules and is not controlled by a single person, such as the CEO or CTO of a traditional company.

Any user holding tokens in the community can vote to decide whether to modify the smart contracts in the system, and record all rules and transactions on the blockchain. For example, in MakerDAO, holders of MKR tokens can vote to decide to add and delete collateral, adjust global parameters, replace module smart contracts, etc., and just leave the decision to the code to run.

MakerDAO multiple community votes are in progress

Its meaning can be summed up simply as:

1. fair——Avoid the phenomenon of competition for power and profit caused by centralized management, and the relationship between members of the DAO organization is likely to be equal.

2. Transparent——The smart contract on the chain ensures that the rules are transparent to everyone and cannot be tampered with, and it also ensures that the rules need to be followed by everyone.

3. Trust and motivation——Trust is the source of efficiency. It is difficult for DAO token holders based on consensus and trust to make decisions that damage the system for the sake of tokens and project value.

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How can an ordinary user who is full of enthusiasm participate in DAO?

1. DAO may require participants to hold certain tokens to join. This is to bind their own interests with the interests of the organization. After all, the appreciation of tokens will benefit all holders.

2. DAO may require participants to make some kind of proposal. For example, if the proposal is supported by more than 2/3, the smart contract will be automatically executed.

3. DAO can also be governed. For example, users with different numbers have different roles and participate in different governance links.

Bitcoin, Ethereum and some truly decentralized DeFi projects are the DAO we are personally participating in. It no longer has the appearance of a traditional company. We can freely choose to participate or not to participate, and we can choose when to enter and when to exit .

Of course, in order to give all token holders more voting and governance rights and achieve more transparent and healthy development goals, Wootrade is also actively exploring and developing more decentralized applications and organizational forms, and DAO is also very potential to focus on promoting part of the

In September this year, more resolutions will be produced within the Wootrade team to share with you. Please look forward to Wootrade bringing more inspiration and construction to the decentralized world!