Since then a group of chronically online crypto enthusiasts tried to buy a copy of the US Constitution In a high-profile bidding war, DAOs (Decentralized Autonomous Organizations) have been at the forefront of discussions in the Web3 world. How are they different from corporations, you ask? DAOs have been lauded for their ability to give everyone in a community a voice, involving them in decision-making and recording those decisions on the blockchain in a transparent, immutable manner. But the utopian vision that some people have for DAOs seems far from reality today.
Next week chain reactionthe TechCrunch podcast all about Web3, we spoke to Alexander Taub, CEO and co-founder of the DAO tooling platform upstream. Upstream started as an online community for professionals to connect with each other during the pandemic and turned to providing mechanisms to manage DAOs as blockchain-based communities took off during the crypto bull run of 2021.
You can listen to the whole episode below:
While some see DAOs as a panacea, Taub argues that there are some use cases for the structure that make sense today, while others aren’t so clear. As some of the most intuitive use cases for DAOs, Taub cited investment clubs, where people pool money to buy a digital asset, and NFT projects that want to give back to their communities.
“DAOs, blockchain – this is programmable money. It really is. So you can program money to do what you want it to do. Not everything, not every community, needs money. If I want to share cute photos of my dog with other people who want to share cute photos with their dog, I don’t necessarily need money there,” Taub said.
Taub attributed the growing popularity of the DAO to the fact that many DAOs have enabled members to make money in new ways, a view that makes sense given his example of investment clubs. But in terms of democratizing decision-making, Taub said it’s up to each individual DAO whether or not it will really function differently than a centralized business entity.
“I think a lot of people look at the word DAO and think the ‘D’ stands for democracy. And it just isn’t [the case]. People don’t sit in a circle and sing Kumbaya and say, ‘Oh, we’re all doing this together.’ It can happen, and it does happen… But that’s like saying there’s only one way to start a business or get a project or product to market,” Taub said.
Like corporations, DAOs have unique voting structures for shareholders, Taub said. Just because many DAOs strive to give their members an equal say, doesn’t mean they all achieve that goal effectively, especially when many of them offer voting rights based on the number of tokens each member owns.
“If you want it to be a democracy, great. If you want it to be a dictatorship, people shouldn’t join your DAO if they don’t agree with your dictatorship,” Taub said.
The “D” in DAO doesn’t stand for democracy, says Upstream CEO Alexander Taub – TechCrunch Source link The “D” in DAO doesn’t stand for democracy, says Upstream CEO Alexander Taub – TechCrunch