Fall Is Officially DAO Seasonbr>
Fall might be pumpkin spice season for some, but in crypto and finance — this Fall is officially DAO season.
Decentralized autonomous organization (DAO) is an organization represented by rules encoded as a computer program that is transparent, controlled by the organization members and not influenced by a central government. The developers of the DAO believed they could eliminate human error or manipulation of investor funds by placing decision-making power into the hands of an automated system and a crowdsourced process. Fueled by ether, the DAO was designed to allow investors to send money from anywhere in the world anonymously. The DAO would then provide those owners tokens, allowing them voting rights on possible projects.
DAOs are on track to change the way organizations work moving forward. It is yet to be seen how regulators will truly side when it comes to this new model.
Kosala Hemachandra, Founder/CEO of MEW (MyEtherWallet), believes that maybe it’s time projects become DAOs instead of traditional companies.
“As regulations around the world continue to be unclear, it makes total sense to me that we are seeing a rise in popularity of DAOs,” Hemachandra said. “They allow crypto to keep innovating in different countries, while showcasing the benefits of decentralization. We used to tell young entrepreneurs to start a company, but I think in the next five years we could be telling them to start a DAO instead. This is because the benefits of creating a DAO structure allows for better transparency, reducing the risk of corruption of the project. From automatic market makers to NFT gaming, DAOs are beginning to create platforms for real innovation in every industry.”