DAO as a new company organizational structure
A DAO can be a powerful tool when rolling out oproducts, and brands and organizations have now the opportunity to engage with their audince in a profund way, even through ownership, rewarding the contributions a community gives to a certain project.
Welcome to the future of management!
Welcome to the future of management!
By José Ignacio Blavi Aros
Lets think on how a vending machine works, and how their processes are extrapolated into a traditional organization.
The added complexity comes when we take the board of directors in a regular company like apple, and how they vote for general paths the company will take. in a DAO, there are no CEOs its governance its given by the votes that are assigned to its tokens, but its management is given to the software, and it will regulate the processes according to the general instructions given to perform its routine operations. DAOs can continuously improve and grow, just like people. As token holders can vote on where it should grow, and what it should improve. And as we said, every token is a vote, and whoever holds more tokens has more power to vote. The value of the organization based on a DAO is given by its tokens, and in its most simple form, if a vending machine is tokenized and governed by a DAO, their tokens will have a higher value if it is selling more. In this sense, if a DAO emits a limited supply of tokens, it becomes a deflationary crypto asset, and that mixed with the expectations of growth and the real impact it has in business, give the DAO the core elements of valuation and price fluctuation of its tokens; and at the same time it gives more value to hold a token of a DAO compared to other types in the market. The most important benefits are its trustless/safety and its impermeable to 3rd parties to shut it down. Another benefit that is as well a downside element is being an open source software, what gives the opportunity to attackers to penetrate the network (in the case the attackers know in depth how the network is structured, they can reverse engineer a way to penetrate it).
Another downside comes for businesses that have processes or elements that are secret giving them a competitive advantage in their market. This because a DAO is an open source software/network, so it makes it very hard to build secrecy. The issue today is that a DAO is like an LLC, so you dont invest in an LLC, not because you have a community, you should start a DAO, because you actually need to solve something, and not just look for building value of a token that has no economic value, because it doesnt solve anything really. Its a different class of asset. |