How do you get online strangers to organize around a common goal and mobilize capital efficiently in a manner that requires no human trust? Decentralized autonomous organizations, or DAOs, are crypto’s answer to that question. And they’ve become immensely popular over the past year.
DAOs are often described as “group chats with a wallet,” but that’s something of an understatement: DAO treasuries across all networks currently hold over $10 billion in total, according to DAO analytics trackerDeepDAO.
The new organizational structure that DAOs represent is better thought of in the wider context of crypto. Just as cryptocurrencies seek to replace fiat currencies or traditional asset classes like gold, DAOs offer an alternative to traditional business structures.
DAOs are strictly online with no physical HQ, operate on a flat management structure (meaning no c-level executives) and are “token-aligned,” meaning members propose and vote on governance decisions according to their token holdings. Some DAOs automatically enforce decisions, while others take it as a binding decision on the core contributors or paid team members to execute those decisions.
But just as DAOs come with a new ethos, structures, and tooling, they create barriers to entry for those without the appropriate skillset; it’s not easy to start a DAO if you aren’t a smart contract whiz.
Nader Al-Naji, founder of social blockchain DeSo, says his team has created a solution for those who need a low-cost, convenient way to launch DAOs to address the current “lack of DAO tooling.” It’s…