DAO ORGANIZATION WITHOUT GOVERNANCE, HIERARCHY, OR ABSOLUTE DEMOCRACY?

Traditionally, an organization is a group of people serving common interests. Organization, in pursuing their interests, is guided by the legislation of the country it is incorporated. The distribution of assets in that kind of management system is to be controlled by governments, central banks, and elites, i.e. by people. Therefore, it implies potential asset manipulation.

DAO is a decentralized autonomous organization subject to governance technologies that provide higher level of transparency while reducing bureaucracy. Introducing smart contracts helps to address the dilemma of the principal agent, i.e. a person making decision being able to affect other individuals or legal entities. DAO can operate autonomously without the need of central authority. Fund distribution in a decentralized system follows a set of rules. Participants-voters, for example, approve funding if the project is progressing as promised.

TRADITIONAL ORGANIZATIONS VS DAOS

DAO can be applied in cases when people do not trust each other or speak different languages, therefore, are subject to different jurisdictions. In the case of multinational collaboration, for example, DAO provides great opportunities for business matching where it was impossible to reach consensus as was previously the case. Participants of decentralized organizations are interested in common goals, and benefits each can gain for executing contract terms, for example, goods or payment. In simpler terms, DAO is a full-fledged autonomous operating system providing interaction for individuals or institutions, and the opportunity to collaborate without having to know or trust each other.

FULL OR PARTIAL AUTONOMY

THE POINT OF CENTRALIZATION

First Full-legal Decentralized Autonomous Venture Ecosystem https://dao.vc