‘You’re probably wondering, what is this all about’, right?
It’s 2022, and Decentralized Autonomous Organizations — also known as DAOs — have arrived.
Looking not long back into the history, where exchanges like Coinbase opened the eyes of the traditional economy to the benefits that cryptocurrencies offer as an asset class today, cryptocurrencies and other decentralized technologies have created various applications that promise to create real social value by offering an automated way to establish trust, but at a much lower cost than traditional organizations (banks and governments) that have completely monopolized trust as a service at the expense of all of us.
Building on the decentralized revolution, KOLs are already talking about the next big breakthrough — DAO as short for the decentralized autonomous organization, that can empower trust at its core.
So let’s dive in and see what Ceres DAO is after…
Introduction
Since the 20th century, information technology and social production have further intersected and integrated. The rapid development of the Internet has deepened the change of various industries to digitalization. High technology represented by 5G, big data, artificial intelligence, VR, AR, MR, blockchain, big data, and cloud computing promotes the birth of massive data. It then encourages the transformation of the social economy into digital form.
According to IDC data, the proportion of global digital economy has been on the rise in the past four years. The digital economy expects to exceed 40% by the end of 2022 and reach 62% in 2023. It means that the digital economy industry will create half or more of the world’s future GDP capacity and industrial production.
In the process of people’s continuous exploration of digital economy development, the Metaverse has been recognized by the public as a new type of digital economic carrier. The DAO (Decentralized Autonomous Organization), the most suitable operating system for the current Metaverse, has gradually entered the People’s vision. With the continuous development of the encryption market and the gradual prosperity of the application ecology, DAO has also attracted the attention of market investors.
DAO is based on co-creation, sharing, and mutual win-win principles. It is a Web3.0 digital infrastructure scenario. As a new stage of Internet development, Web3.0 is the technical realization of the Metaverse, which determines that the Metaverse is inherently autonomous, self-governing, and has properties such as openness. The high degree of agreement between DAO and the Metaverse in terms of concepts and principles is the basic premise and critical point for them to compliment and complement each other.
The emergence of DAO is gradually decentralizing management rights to individual groups, and everyone can make their own contributions to the construction of “Metaverse+” (Metaverse Empowerment). At the same time, data rights, asset rights, proposal rights, governance rights, and development strategy ownership have gradually transitioned to the hands of community consensus creators and are jointly owned by everyone.
Not so long ago — with the 2021 crypto bullish market, Ventures DAO (or what we commonly call investment DAO) also started to shine, attracting the attention of traditional investment markets and crypto KOLs, with the billionaire Mark Cuban, who calls DAO as
the ultimate combination of capitalism and progress.
The famous crypto investment institution A16Z also specifically led and laid out the amount of investment for DAO, which was shown to be in millions of dollars, which makes investing in DAO a highly promising area for growth.
A report from Dovemetrics states that out of the 84 investment DAOs included on the site, 561 investments have been made since the inception of these investment DAOs. On average, an investment DAO has closed 25 investments. In terms of the investment amount, the average traditional crypto VC (excluding investment DAOs) invested $20.5 million in 2021, compared to $6.2 million for investment DAOs.
In terms of investment tracks, DeFi is still the favorite track for investment DAOs, and in addition to the overall crypto market’s investment fervor for DeFi, a large part of the reason is that some investment DAOs tend to supply additional services to their members by providing funding to some DeFi lending agreements and DEX’s.
Concept of DAO
DAO, meaning Decentralized Autonomous Organization, which is an important concept that has emerged since the birth of Bitcoin. A DAO is an organization built on smart contracts that anyone can join and exit anytime. It has its procedures and rules, and the rules are open and transparent. a DAO does not require promotion or intermediaries. It is ideally honest and fair, arbitrary and autonomous, and operates autonomously. A DAO serves as an organizational structure that raises and manages crypto assets while allowing for transparent governance. DAO operates as an organizational structure that raises and manages assets while allowing transparent governance, which will have a massive effect on adopting Web 3.0 products.
DAOs have evolved to encompass the needs of diverse communities and enterprises. Investing in DAOs has become a way for communities to invest in early-stage projects. The legal structure of a DAO usually takes the form of an on-chain component in the form of a smart contract that governs the operation of the DAO and an off-chain part that provides some legal liability protection for its members. The investment process for investing in a DAO is different from a typical venture fund, as each member of the DAO can act as a lead investor and submit proposals to the DAO.
DAO as main factor of DeFi’s evolution
Despite Defi’s explosive growth, one cannot deny that there are still many challenges in current Defi investments, and like most capital ecosystems, investor reputation is the most powerful asset. Funding rounds are very competitive, and founders have a lot of power in choosing investors. Defi funding is highly dependent on market volatility, causing many potential angel investors to potentially be unable to enter the Defi space with small investments as Defi’s valuation soar. This is not friendly to many smaller investment institutions and retail investors. Specific problems exist in the following areas.
1) High investment and participation threshold.
Crypto funds with good brands and reputations are prioritized more than ordinary investors. At the same time, the founding team usually requires a high minimum investment amount, excluding potential small and retail investors.
2) Poor investment information.
Senior investors have more project information and investment contacts than ordinary investors and have more details on financing and investment channels.
3) There is a digital asset and transaction risk.
Despite the explosive growth of Defi, traditional financial traders migrating to Defi are forced to use centralized custodians, which naturally creates counterparty and regulatory risks. Whereas DAOs, as an underlying design, seem to be able to be combined with various hotspots, Defi projects directly adopt the governance model of DAOs, allowing pass holders to participate in the ecosystem development and share the financial derivatives benefits. In such a project, pass holders are community members with decision-making power who can design and optimize protocols and applications through proposals. Defi products as payment and distribution methods within the organization make DAOs more decentralized and digital. Defi is undergoing an iteration, and the DAO governance model has become one of the criteria defining Defi 1.0 and Defi 2.0.
Ventures DAO makes decision collectively with the “wisdom of crowds”.
Ventures DAO operates on-chain and fully transparent.
Ventures DAO operates on-chain and fully transparent.
Birth of Ceres DAO
Ceres DAO is a decentralized digital asset management protocol empowered by Web 3.0. Ceres DAO’s mission is to bring decentralization and transparency to asset management. Ceres DAO enables the participation of retail investors in the early stage of a project. Conventionally, hedge funds or venture capitals have the opportunity to provide funding during the seed/private round. They can buy the tokens at a relatively low price and thus create enormous selling pressure once the tokens are traded publicly. Retail investors can neutralize their disadvantage through Ceres DAO.
Ceres DAO redefines assets management. It carries much-needed innovation to the conventional financial investment industry and expands the types of assets investments in the process. Ceres DAO, with a fully decentralized DAO governance, performance-based ranking, and reward system, creates a space for co-creation for a win-win situation among users. Any users in the Ceres DAO can raise a proposal for the benefits of the ecosystem. The DAO governance structure paves the way for users to contribute using blockchain-native solutions that harness the power of Web 3.0.
Ceres DAO Vision
Ceres DAO focuses on asset management protocol, with decentralization as its core concept. It creates growth in technology, allocates funding for new quality projects, rebuilds community trust and security, and breaks the monopolistic investment structure and unequal pattern of institutions and capital. Ceres DAO ensures fair access to public infrastructure and information and provides a sound investment with great returns.
Relying on Web 3.0
Over the decades, we have seen the Internet move from “read” to “read-write” and now “read-write-own.” The Internet is not only a place for transactions but a place for connectivity, ideas, and programmable democracy. Protocols can now be automated at the application and organizational levels, and participants can define business logic and behavior rule sets for all participants. Products and organizations can be owned by the participants who built them.Blockchain is a technology, DAO is an institution, and Web 3.0 is a culture.
Blockchain is a technology
DAO is an institution
Web 3 is a culture
DAO based governance
Ceres DAO is a DAO managed by CES holders. Through a proposal and voting process, CES holders will determine the actions and direction of Ceres DAO. CES value and economic models (primarily pass-through) are relevant to the ecosystem’s success, and anyone can propose partnerships and product upgrades for Ceres DAO. CES holders will vote on whether to approve or reject the proposals, and ideas need to provide sufficient analysis and be executable.
The decentralized nature of Ceres DAO usually means that it is democratic rather than being all hierarchical. For example, all participants voted on any changes rather than a single decision-maker. The code automatically calculated and executed all votes rather than relying on human intervention. Smart contract eliminates the possibility of mismanagement or tampering with the vote count, thereby increasing transparency and complete visibility.
Since it is no longer necessary to trust other participants in the DAO, it can be composed of many people who do not know each other and would otherwise be unable to coordinate their common goals. In other words, they can transcend any physical limitations and ensure that all parties are working for the project’s good.
Decentralization Principle
Ceres DAO uses decentralized governance, it is not a company, it has no management team or staff. Ceres DAO is a collection of builders and stakeholders who hold CES (equity token) and are motivated for the project’s success.
What if all is just a beginning!?
Hope you liked this short introduction. We will share further more very soon. If you want to stay tuned, give us a follow or join our socials on the links below.
Links to Ceres DAO:
