Exploring the new world of decentralized autonomous organizations
What the internet did for communication, DAOs can do for capital.
The internet and social networks have made it easier for like minded individuals to communicate than ever before, regardless of geographic location. The advent of digitally native money and finance have now enabled a new kind of social network that allows for like minded individuals to not just communicate, but also coordinate around capital. As with their predecessors, these new networks are unconstrained by geographic borders, capable of forming at massive scale or across a small number of select participants.
The most optimistic thinkers believe that decentralized autonomous organizations can reinvent how humans organize and eventually eclipse the size and scope of the world’s largest corporations and even nation-states.
In this edition of Around The Block, we explore the current DAO landscape and big questions surrounding their future.
What is a DAO?
Simply put, DAOs are software enabled organizations. They allow people to pool resources toward a common goal and share in value creation when those goals are achieved.
Just as the LLC (limited liability corporation) was the preferred organizing primitive of the industrial revolution, DAOs can be the same for Web3. Where corporations are rooted in the legacy financial system and organized through legal contracts, DAOs run on top of open blockchain networks like Ethereum,…