organizational structure

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(Singh, M., & Kim, S.，2019. Blockchain technology for decentralized autonomous organizations. Advances in Computers)

(Singh, M., & Kim, S., 2019. Blockchain technology for decentralized autonomous organizations. Advances in Computers)

Decentralization makes operations more free. DAO can carry out various activities from investment to ordinary data storage, transform the previous coordination model into a digital, coordinated governance model that is in line with the world, and lead a new era of economic freedom without third-party control.

smart contract

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For example, DAO's digital signatures and smart contracts can be used to monitor transactions and effectively prevent fraud. Additionally, DApps and smart contracts can be used to communicate with stakeholders through network nodes. This facilitates relationship maintenance without human intervention, ensuring transparency and indestructibility of contracts, while promoting healthier relationships by complying with regulations and valuing security and privacy.

income

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The DAO promises to maintain a secure and transparent channel in the public ledger, which is reliable and immutable. This shows that the transparent revenue brought by blockchain technology is conducive to establishing a solid business model revenue stream, meeting customer needs, and providing satisfactory products or services. The DAO's transparency helps alleviate the information asymmetry between buyers and sellers.

Simplifies financial transaction processes without the involvement of third parties, eliminating the need to repeat contracts in different records, ensuring optimization of transaction costs and standardization of chargebacks and service accounting. DAOs open up a number of revenue stream models for organizations. These revenues come from maintaining APIs and infrastructure, developing applications and professional services, smart contracts, network mining and SLA management.

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The construction of DAO also requires a strong partner network, and even creates a partner-based ecosystem through traceability and automatic control between network nodes. Partners not only need to share the responsibility to communicate value, but also to mitigate risk, optimize operations, and expand access to resources. It is predicted that open-source DAO platforms, open APIs, community-based code bases, and public deployments will form a healthy disintermediary ecosystem, which is beneficial for reducing risks, reducing costs, and dealing with uncertainty.

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Risks and Controversies

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However, DAOs also face some risks and controversies.

• Legal Issues

As an example, attacks on early DAO projects have touched legal issues related to security, such as taxation, in some countries. However, governments and financial regulators have gradually shifted from an initial nervous hostility to a more cautious market-friendliness as disruptive decentralized technologies become a key business concern for startups and market players alike.

• Risk of withdrawal of investment

Studies on layered technical infrastructures have analyzed the configuration of DAOs but neglected the relationship between the different actors in the governance process. In other words, combining technical analysis with institutional arrangements to address politics and power is highly controversial. For example, there are concerns that the development and control of a DAO may create a conflict of interest due to the potential status of hired contractors.

future outlook

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future outlook

Blockchain governance presents new challenges from the different protocols, actors and ecosystems that shape the development of the technology.

Some believe that as DAOs and blockchains develop, DAO projects will mature and show overwhelming advantages over many existing solutions. It is even possible to use DAO technology to establish a unified single currency platform.

Many people have idealistic visions for the democratization of DAO, and are still exploring how the DAO system can promote democracy and make large-scale crowdfunding possible.

In a word, DAO symbolizes a revolution and a new stage of business model innovation.

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