Crypto Comics - What is DAO

By xuanling11 | Crypto Learning | 3 Mar 2022


I tried to explain what DAO is in comic strips.

 

TL;DR

I explained what DAO is and how DAO works.

2fc78c74556a61c761409bb8992f6ed2c5426e8975563c8bc1ffbd67508b7148.png

Some Takeaway

DAO or Decentralized Autonomous Organization is an entity without central leadership. There is leadership in the DAO, but it is very different compared to traditional organizations. In traditional organizations, leaders make decisions through a centralized, hierarchical process with only a few members in the decision-making process. On the contrary, DAO encourages every member in the entity to make a collective decision through a consensus process. It is a bottom-up process to make sure everyone participates, and the decision is a collective effort to determine the entity's future.

 

Human Rules vs. Machine Rules

In traditional organizations, leaders make rules. However, such rules may not apply to leaders themselves because there are no balance and check groups to enforce such rules compliance. Regulations can only reach a certain distance while leaders of the organizations enjoy special treatments. Such organizations will create biases and favoritism in the long term. Compared to machine rules, no one can change solely without a collective consensus. Everyone will obey the rules in the entity. It is a fair way to operate an entity in the long term.

 

Decentralization vs. Centralization Leadership

DAO is a decentralized organization that ensures everyone has an equal and fair share in the community. While centralized organizations have efficiency, decentralized entities focus on long-term goals of fairness and equality. However, it does not mean there will not be leadership within the decentralized entity. Decentralized leadership will have more perspectives compared to centralized leadership.

 

Proposals

Instead of offering compliance from the centralized leadership, participants offer proposals to help the entity grow. Such proposals will pass if most stakeholders approve them to exclude them from being spammed with proposals. 

 

Creation

Everyone can create their own DAOs compared to a company where only founders can achieve the goal. It is a transparent and open-source process for DAO to establish and grow. Information can be seen in the blockchain as one of the most significant features for DAO to attract more people to join.

 

Downside

Of course, not to fantasize about DAOs, there are always some drawbacks. How to fairly compensate members and what can DAOs do to foster collaboration are among of many questions that each DAO will have to discover and resolve. It is an experience that people try to test and find a better solution. 

 

In conclusion

DAO is one possible organizational structure in the future. It gives people a goal and hopes to work with their own passion.


Photo by shawnanggg on Unsplash
Note: the post was shared on multiple platforms here.

You can refer my previous article lists here
Digital Commodities- the Unlimited Resources of Commodities Has Born
Universal Income in Crypto Way
DeFi 1.0 is Officially Dead - Welcome to DeFi 2.0
NFT Has a New Purpose
How Many Ads Are Too Much - Floki Inu Ads Got Backfire
Metaverse - Second Life Era
Bitcoin ATM Adoption and Its Potential Security Vulnerabilities
When Corporations Are Running By Everyone
The Fundamental Value Is Irrelevant
Coinbase At Huge Reputation Crisis
CBDCs' Flaw Design
Regulations Start Hitting Crypto Exchanges
From Bitcoin Standard To Zero-Knowledge Proofs - Decentralization 2.0
Shiba Hits 1 Million Users (Army) Milestone: What is Next?
How To Avoid Crypto Scammers
Crypto Philanthropy
Shiba Game - When Meme Meets Metaverse
Twitter CEO Steps Down - A Full-Time Bitcoiner
Change of Macroeconomy Landscape
CBDC Is Losing The Game
Crypto AWS
Doge The Future
El Salvador's Bitcoin
Market Sentiment Has Changed
Brief History of Ethereum and How Ethereum 2.0 May Over Promise
Crypto Is Getting Real
Who Cares If Craig Wright Is The Real Satoshi
Institutional Investors vs. Whales
What Happened In BadgerDao
A Proposal To Move Bitcoin Mining PoW Away
IMF Keep Crying Out, Crypto Adoption Keep Accelerating
Dogecoin Is Back to Top 10 But The Moon Shot Is Looming
How to Avoid The New Wallet Scam
Defi Enters To Crypto Bond Phase
What Types of Metaverse You Want
Global Regulations Are Coming Or Can They
IMF Did Have A Plan to Run Global Regulations
Doge Starts Moving
A New Malware Will Steal From Telegram
Smart Money Is Out, Institutional Money Is In
Wait, Web3 or Web 3.0 or web3
Airdrop?! Not So Lucky Anymore!
2022 Prediction #1: L1 Scalability
2022 Prediction #2: L2 Bridges
2022 Prediction #3: Zero-Knowledge Proofs or ZKPs
2022 Prediction #4: Regulated Defi On-Chain KYC
2022 Prediction #5: Institutional Crypto Adoption
2022 Prediction #6: Defi Insurance
2022 Prediction #7: NFTs-Based Communities - DAO 1.5
2022 Prediction #8: Metaverse and NFTs
2022 Prediction #9: Web2 Companies’ FOMO
2022 Prediction #10: Time for DAO 2.0
Craig vs People
Polygon Enters ZKPs - Plonky2
Crypto.com Backfire - When Centralized Crypto Service Panic
Coinbase NFT Marketplace
Crypto Paycheck
Coinbase Customer Service Alive
When Meta Patented Metaverse
When You Want Someone Forget About What You Did, Just Change You Name
When YouTube Enters Into NFTs
Facebook Just Did the Rug Pull
Bridging Between Web2 to Web3 Through NFTs
DAO The Way Part 1
DAO The Way Part 2
Who Is The Winner of The Crypto Adoption
Phishing Attacks
DAO The Way Part 3
What You May Expect NFTs After 6 Months and Beyond
DAO The Way Part 4
Licensed NFT vs. IP Law
Wormhole Hack - It May Not Be a Bad Thing
Preventing Rug Pulls
DAO The Way Part 5
Lessons Learned From Wonderland DAO
DAO The Way Part 6
Learn How To Defi Part 1
DAO The Way Part 7
Discord Scams
DAO The Way Part 8
Learn How To Defi Part 2
Learn How To Defi Part 3
DAO The Way Part 9
Learn How To Defi Part 4
DAO The Way Part 10
DAO The Way Part 11
Learn How To Defi Part 5
Crypto Comics
Crypto Comics - PoW
Crypto Comics - Who is Satoshi
Crypto Comics - What is Token
Crypto Comics - What is DeFi
Crypto Comics - What is Wallet
Crypto Comics - What is HODL
Crypto Comics - What is Coinbase
Crypto Comics - What is PoS
-------------------------------------------------------------------------------------
Disclosure: The article was written by a delusional author who is possibly a nut job without any questions whatsoever about expertise in the subject matters. You should not believe any words this author wrote or you may experience similar symptoms or even possibly become a nut job.

How do you rate this article?


24

0

xuanling11
xuanling11

A delusional author who is possibly a nut job without any questions whatsoever about expertise in the subject matters to write with a freestyle.


Crypto Learning
Crypto Learning

All article was written by a delusional author who is possibly a nut job without any questions whatsoever about expertise in the subject matters.

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.