Original title: "
Revisiting 1602: Is DAO a new corporate paradigm?
》 Original Article by Andrew SingerBlock Unicorn
"Entrusting Your Vote to Competent Experts in the Industry Will Give Owners a Stronger and Clearer Voice in the Management of the Companies.
In 1602, The Dutch East India Company was Founded in What Many Believe was the World’s FINITIAL PUBLIC Offering – ALLOWING Complete Strangers to Buy Ownership O F Shares. Four Centuries Later, The Shareholding Model – And Especially Its Incarnation as the Modern Commercial ""Company " – set the page for much of the economic world.
But the dueractralized, Autonomous Dao Could Soon Undermine the Joint-Stock OR CapitalISED Business Model, Just as the Dutch East India Replated the Limited PAR toneship of the time.
Or aME MIGHT say: "The Dao is the New LLC," Dao Investor Cooper Turley Says of the Leaderless Internet Native Entities, where Key DeCisions is often Made By CONS ENSUS. "In Five Years, Companies Will No Longer Own Equity. They Will OwnTokens, and they will be represented as daos, "While Noted Investor Mark Cuban Added," The Future of the Company " Al business.Web3 projects.
"I think daos are alream replied tractitional companies," Sam Miorelli, A LAWYER ACTIVE WITH MANY DAOS, Including Curve Finance, TOLD The Magazine. of the dao is the optionunity to Return to the Historial Norm of Project FIRST, where smartPeople with good IDEAS can get funding and build commities design projects without finding a lem budget. ONS HAVE SOME University Characteristics.
"Dao is not managed by a board of directors or managers, but is intended to be managed through democrative or highly partipisses or algorithms."Agra Wealth Management
In Fact, They’ve Been Described as Operating "Similar to An Online Chat Room with a Bank Account," Becauce "Almost Anywhere Can Access the Internet and Can the dao, participate in its Governance and share in its profits, "FlorenceGuillaume, a Professor at the university of neucHatel school of law, tells the magazine.
Back in 2016, when one of the first decentralized Autonomous Organizations -Unhelpfully named "the dao" & nbsp; when it launchd on the ethereum blocks TWORK, Things Did’T Look so rosy."WAS HACKED and LOST $ 60 Million, Leading to a Bitter Split in the Still-Nascent Ethereum Community that eventually, OR some time, "The Dao" Cast A Shadow Over Decentralized Autonomous Organizations.
TODAY, These Transparent Community Organizations Still Face Serious Regulatory and Legal Challenges. Do they have to pay taxes? Can they open banks or si Gn Legal Agreements? Can they bring lawsuits aginst Other Daos?
Attorneys Louis Lehot and Patrick D. Daugherty Write: & Nbsp; "There is no model dao action, just like there is a model business company. Precedent ". Key Decisions, Such as decate how to spend money,Are OFTEN VOTED on by B?
A Few Things About Daos: They are typically coopratively on blockchains like ethereum (but not bitcoin) that can process blocks of Software Called SM Art Contracts That Are EXECUTED Automatic When Conditions Are Met. For Example, if an Airline’s Flicht is delayed byFour Hours (I.E., Condition), A Smart Contract Code Triggers Payment Via Mobile Phone to a Passenger WHO Has Purchased An Insurance Policy.
Most DAOs are sold through sale
The raising funds gives investors/owners’ right to vote.If DAO vote to pay dividends or pass
The owner will make money, similar to the way investors make profits in listed stock companies such as Coca -Cola.
"Daos have a future," Erik Vermeuen, Professor of Business and Finance Law at Tilburg University, Told The Magazine, Given Their Transparence, Security Open Source GoverNance Protocols, Which Means Constantly Exploring and Testing Vulnerabilities. Moreover, then do not enCourage"Rent-Seeking", The Manipulation of Public Policy or The Economy to Increase Profits. d that becape of their distributed nature, they are aimed at presenting nature and political monopolies.
But are they really better than the traditional organizational business model?Not everyone agrees."Current
The system may not be able to prevent monopoly, because some people may have a large number of DAOs
Therefore, the results of the voting may be controlled, "Sarah Hammer, the managing director of the Wharton Business School Stevens Financial Innovation Center, told the magazine that adding:
"All daos are different, and some are structudured to promotE Inclusion, while Others Limit their Membership in Response to Something Called token Gating. Ires Dao Members to Verify that they hold dao’s nft token in their encrYPED WALLET BeFore Accessing Dao’s Discord Server orwebsite. ""
Eric Lim, A Senior Lecessuer at the University of New South Wales, Told The Magazine: "The Defining Attribute that sets Daos Apart from Past ORERE of blockchain as a source of trust, "so that the inputs and outputs of decisions areImmutable and Auditable. "This represses an advance on the tractional centerised organation. Lim calls it a" zero-sum game. "
DaOS HAVE Attracted More Attention in The Mainstream Media Over The Past Year, Which Reveals their Stringths and WeaknesssSses. HED on Short Notice in November, Raising $ 47M in a Matter of Days to Bid on A Rare FIRST PRINT of TheUS constitution auctioned by sotheby’s.
Descripard as a "FINANCIAL FLASH Mobile," The Dao Gathered More than 17,000 "Donors" – A Symbolic Achievement in the Eyes of Many, and one that, if SuccessFul, WOULD puld Pul, WOULD puld puls UT The Historic Document "in Many Hands" (in a Museum, For Example) Rather than being owned by one person and may never be displayed agian.
However, Once Bidding Began, It Became Clear that the Dao’s Transparent Decentralized Structure Could. SES and How Much Can/Will Be Bid.Explained david Friedberg. "Sellers will only bid on the dao to get their Highest Bid." Citadel’s Chief Executive, Ken Griffin, too the rare document home.
DISSOLUTION is Also Not Smoolh, as daos can be quickly set up for spiecil events and then different. LAN to Return its investment, as Contributors argued in online group chaats, "the news. "The average inhibestment is about $ 200, but now Investors may have to pay that much to get their cryptocurrencies back."
However, this experience did not make DAO supporters discouraged. They asserted that like any innovation, the growth challenge can be expected.These entities aim to flourish in the WEB3 era.In addition, DAO’s decision -making process can be simplified by implementing variants in the digital age (such as commissioning voting).
Holders) can allocate their voting to the trusted people.third party.
AS PAUL BRODY, ERNST & Young’s Global Blockchain Leader, Explains, Shareholders of Large Companies Now Vote Down Management IT UNDERPERFORMS. In CE, This Rarely Happens, But Proxy Voting Changes Everything.for the dao, "BRODY TOLD The Magazine, Adding:
"With widespread inVestment in blockchain and trade stock Markets, it’s possible to track everything. Your Vote to Competent Experts in the Industry Will Give Owners A Stronger and Clearer Say in the Management of the Companies.
"Voting Schemes Based on Smart Contracts Could Alow More TO PARTICIPATE in Decision-Making, at Least Compared to More Cumbersome and Expensive Systems THAT Llect and validate votes, "Wright Said." The Availability of Smart Contract Voting Protocols May Enable Somersses toadopt their own tailored allocation of disc
Daos can also, which is his a project and how they are paid. versity’s questrom school of business, tells the magazine. "in anIncreasingly Global Society, The Benefits of Being Able to Recruit International ETITIVE Advantages. "Conneelly Says These Autonomous Organizations Offer PARTICIPANTS MONTE POAN THEY MIGHT HAVE IN A Traditional. ship over theResults of their work, and workers in developing countries will be less likely to fall victim to geographical class divisionsUdabur Stock. ""
Others, However, are more cautious. Able to "Sybil Attacks" and "51% Attacks," While Guillaume AdDed, "DaOS May Not Replace TRADITIONIONIES But PROVIDE New Alternatives for Existing Business and Social Organizations. ATION for Specific Cases, but this will be gyrtly influent by legislation and how daos are targally, "Further Explains:
"If this type of organization has coratus and provides limited liability to my members, Entrepreneurs and Others looking for a lead a n ew business may be more inclined to choose to create a dao. "
According To Miorei, Open Source Legal Work and Open Source Decentralized Building Blocks are two ways that Daos can lead to a future of Lower Transaction Costs For Al l. "This also applies to funding l l Projects.Which are managed by dao – is "the Returns that can be the achieved when transaction costs drop to nearo and when immutable enforcement of OutDated Classification Rules, SUCH As Approved Investor Regulations, Impossible. "
Daos Need to Overcom Some Key Obstacles – SUCH As Decentralized Governance Structures That Sometimes Don’t Handle ConflicTs or COMPETITITION D. iFFICULT, Complex and University to Coordinate and Organize Activities in Decentralized Community, "LIN SAID. AT the Same Time, Guillaume Added, "The Dao Governance Structure Needs to get to a point where managing resourcess user contractor and more adaptable than "
However, Daos Cant Completely ElimInate the Human Element and All the Limitations that are implicit in. Can CompaniesSurat Wealth Management. No Law or Organizational Structure Can Eliminate Interpersonal Conflict, "Miorelli Said, Adding thatAny Well-Organize Effort Can Try to Manage the ConflicTs.
TheRE OTHER Reason for hesitation before declving the dao the future of an organization’s business model. ES Into A Company that resembLEs Tradingal Top-Down Management. That’s the question on brody’s mind:"When did the Dao Stop Being a True Participatory Ecosystem and Start Look, Just Another Style of Shareholder-Owneder-and Now Stakeholder-Company with A Fu LL-Time Management Team and a Vry Corporate-Like a hierarchy? "
DAO will just own one
Isn’t it a company’s company?"Or does it mean more overlapping, participating and participation of users and owners?" Broddi asked."I think DAO is one of the business structures that people consider with partnerships, wholly -owned enterprises and companies," he continued, although he expects that most of the blockchain business will be DAO and many "protocol -driven technical business -driven technical businesses"manage.
In addition, some DAOs seem to be incredible -such as OlympusDao, which once was willing to mortgage its OHM
People pay 2,681.5% of APY.Some people think that DAO is just a Ponzi scam, and some people think it may be the future of DEFI.However, the hustle and bustle around it shows that these Internet local entities may be more supervised.Will this ensure the future of DAO?
The Answer is not clear. Hammer notes that while some us states, such as wyoming, have enacted leveling daos, "Many Other States have not done so. In ON, SOME DAOS May Specifically Address Federal Regulations and Securities Laws. "
"I don’t see Dao Replacing the Traditional Corporate Form Anytime Soon," Hammer Told the Magazine. For Example, TraDitional Corporations formed Under The Delaware Corpor ATIONS ACT "Contain Structures that, While Imperfect – SUCH As Proxy Voting – Have Stood Thetest of time. "
In Addition, Replass TRADIONAL FIRMS As Dominant Business Organizations "Will Require A Complete Transformation of the Federal Financial ReGulatory Framework H is unlikely to have had in the near future, "Hammer Added.
Overall, there is a lot to be exp) ly in a Completely Trusted and Transparent Way. ""
"USING BLOCKChain, a Large Group of Geographical Dispersed People -Many of Whom Can Remain Anonymous – Can Now Collaborant That Any DeCision Made I s the true will of the commit, "Connelle Told the Magazine.
It Also Involves. "A Dispassionate Blockchain Technolog that Treats Everyone Equity in the Community" and Allows for "Incentive Structures that are om what we’re used to ". It’s about inclusive ownership and doing what’s right for the commit," Eric LimAdded. Still, Dao is unlikely to completely sidestep the government challenges that challenge traditional business organizations: Miorelli warns:
"The Entire University Section is Committed to OPTIMIZING The ORGANIZATION, and I don’t think the dao has been for discline the traditional company. What would EVER the Legal Structure or name, it’s the popular that that matter. "
Daos Also Require a Consensus MindSet, which May take some getting user to. Eric Lim has true several daos, which he says is in Stark to the way. Ities operate. "In the dao, I had to convince almost anyone to fund the project," he says. "And people are motivated to talk to me. There is a consensus that if projects that provide value to the community are funded, the community will grow."
So, do, does the dao really reply an improvement over something?
"I’m an Optimist, and I Believe in the Dao’s Intrinsic Value Propositation," Lim Said. "The Criticisms of Dao – They’re Clumsy and Messy and UNMANAGEABLE- -ARE the SAME CRITICISMS of Democratic Philosophy. Both, in my, in myview, are polmannt works in progress. ""
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