The Complete Guide to DAOs: Exploring OpenCurrnt
By OpenCurrnt Contributors, Hamzatt, and Igor MD!
Introduction
Someone new to the world of blockchain might be intimidated by all the new terms, jargon, and just the vast amount of information that is available. When I first started learning about Blockchain, DeFi and cryptocurrency I too was overwhelmed by all the new and exciting technology that existed. Every article or page I would read would result in me discovering yet another handful of terms that I had no idea of. Searching how what and why these terms existed has resulted in me learning a lot about the crypto space in general and has allowed me to gain an edge over other investors in finding “the next big thing”.
One of these new things is DAOs, and in this article, I would like to introduce you to the concept of DAOs, how they work, how you can contribute to them, and what the future of DAOs will be!
Decentralized Autonomous Organizations(DAOs).
As the name suggests, DAOs are essentially free of centralized authority and operate independently without restrictions or control from the government or autonomous private sector players. To fully define DAOs, we should briefly take a look at the history of the internet.
When Web1 first came into play, anybody could put up content like websites or even blogs. It was the era where most internet activities involved browsing static individual pages. With Web2, there was a paradigm shift. Bigger platforms like Facebook and Google scaled these actions all over the world. The bland pages of Web1 were replaced with the connectivity and user-generated content that Web2 offered. Web 3 represents the next phase of the evolution of the internet and poses to be very disruptive and even represents a bigger paradigm shift than the Web did. Web 3 is built upon the core concepts of decentralization, openness, and greater user utility.
Web3 offers the same connectivity as its predecessor but adds the opportunity to reclaim our digital voices and personal identities. But only if the correct foundations are laid. The key component of this paradigm shift to Web3 is replacing centralized monopolies with people-driven and democratic structures called DAOs.
What are DAOs?
The term DAO is an abbreviation of the words Decentralized Autonomous Organization. DAOs are completely hosted on the blockchain and are managed by using web3 technology. The organization governs a community treasury, which they use to incentivize tasks and jobs that help them achieve that goal. This way, using the power of a decentralized blockchain, communities can achieve new things that were previously thought to be impossible! The closest one might be able to compare a DOA to a real-world institution might be LCC, but the big difference is that the community decides what route the DAO takes, instead of a board of directors. The founders of the DAO usually still have a large influence on this route, but as time progresses the community can slowly take these rolls on. All of the administrative responsibilities for a DAO lie in the capable hands of blockchain technology. DAOs may be unregulated, but they are not lawless. All of the DAO’s actions and funding can be seen
and analyzed by anyone. This transparency significantly reduces the risk of corruption, illicit activity, or fraud by preventing important information from being censored. Unlike traditional organizations that operate from the top-down, DAOs operate with a flat hierarchical structure, allowing all members to have a say in crucial decisions that affect the broader group — rather than just the primary
shareholders.
How does a DAO work?
This brings us to the next question; How does a DAO function? A DAO is founded by someone with an idea or a vision. This person starts a DAO and finds people who are also passionate about this vision. This idea can be anything from starting an investing club to trying to change the climate to buying properties, any idea or vision would suffice to start a DAO! Once the DAO is set up with a website or (at least) a communication channel, you can start the funding round where tokens are sold to fill the initial treasury of the organization. These tokens are then used to vote on proposals which help achieve the goal of the DAO, and the treasury then functions as a way to complete the proposal once it is passed. If you want to increase your influence on the course of the DAO, you might contribute or buy more tokens!
What does it mean to be a contributor?
So the next logical thought is; How can I contribute to a DAO? Good question! First off, you will need to find a DAO that shares a vision or idea you support. DAOs are always in need of people who can perform tasks for them, so just join one and immerse yourself with the available information and people. Once you’ve found a DAO, you can start to do bounties or tasks for them. These can range from writing articles to programming a website to manage the community. You can reach out to an admin of the organization or use websites like layer3 or dework to find bounties that help propel the DAO to new levels. The fun part about doing these bounties? Performing these tasks or bounties usually are rewarded with voting power (in the form of tokens) or are rewarded in crypto. This way you are supporting a goal you stand by whilst also earning!
A brief history of DAOs.
The first-ever DAO was called “The Decentralized Autonomous Organization. (The DAO)” It tried to become a Kickstarter, where anyone could pitch an idea and receive money from The DAO. It was a big success, reaching a treasury that was filled for almost $250M when Ethereum traded only at 20$. Sadly, the smart contract that was used contained multiple flaws, one of which was exploited by a hacker who withdrew almost $70M in Ether before eventually stopping. The impact of this hack was so big that the chain decided on a fork, reverting the hack and returning the money to all its investors. Not everyone agreed to this fork as some pressed on the fact a blockchain should be immutable, even after such a big hack. The result was the creation of the Ethereum Classic chain, which still carries the hackers’ funds and the Ethereum chain which had the hack reverted. Although The DAO itself understandably died after the hack, the idea persisted and has been the basis of which every DAO currently exists!
Why should people be part of DAOs?
DAOs empower the members of their community via voting rights. They allow investors to send, receive or store value globally, automatically, and anonymously. They help society deal with restrictive bureaucratic systems. Not only do DAOs incentivize individuals to participate, they fundamentally change how contributors think of their effort and labor. All work is grounded in the pursuit of a larger purpose, of which the upside is shared. Ownership imbues feelings of creation and success. It is natural that an owner feels more financially and psychologically incentivized to support peers, uplift the work of others, leave ego at the door, and do their best work than a traditional worker. DAOs can reward members of other DAOs based on their token holdings
The future of these organizations looks so bright that businesses have started popping up to fuel their growth with supportive infrastructure. One of such beneficial DAOs is OpenCurrnt DAO.
OpenCurrnt:
OpenCurrnt as a DAO is of course democratized and governed by its members and stakeholders. It is a platform that creates fresh knowledge. It is capable of engaging and rewarding millions of creators and learners alike. It fosters collaboration to facilitate creative knowledge creation and learning with technology. It is the world’s first knowledge-networking platform.
OpenCurrnt DAO seeks to significantly improve the ease with which engagement around fast-moving and highly nuanced topics are coordinated. Using blockchain technology and artificial intelligence, this is achieved, making people and organizations more resilient and relevant in a fast-paced world.
How does OpenCurrnt function?
The OpenCurrnt platform is a web/mobile application with a Web3 and AI stack that outlines, streamlines, and empowers the creation of processes that facilitate the exchange of knowledge. It ensures data control and privacy. It functions by coordinating people, validating individual journeys, and incentivizing them through joint ownership. Ideas are formed by the healthy friction of self-formed groups on narrow fast-moving topics. As more people interact, algorithms measure the creation of value and connect others able to build on the ideas. As groups form, IP ownership is measured and rewarded in the form of Tokens for both recognition, and compensation, thus making it a perfect place for personal growth, community growth, and knowledge growth. This is what we can call knowledge networking! Its combination of artificial intelligence and blockchain technology enables dynamic community formations, badges, algorithmic data management, and tailored individual journeys. This emergent vibrant space of self-formed groups of expert perspective offers individuals and companies a valuable source of next-generation research and learning. On OpenCurrnt, groups can produce both custom and refreshed insights in one-time transactions or ongoing subscriptions.
In summary, the key features of OpenCurrnt are knowledge networking, team engagement, journey and validation, assigned roles, option of anonymity, and its sub-DAO characteristics. Sub-DAO characteristics means that new DAOs can be formed within the platform that benefits from the platform’s services and stays within the common good of the OpenCurrnt DAO, whenever a group is formed around a topic.
OpenCurrnt’s DAO model:
OpenCurrnt is made up of people aiming to learn more about the fast-moving and highly nuanced trends and technologies that are reshaping our world. Initially focused on Web3 topics, the community is extensible to all topics across all industries and geographies, and languages. The global community tends to attract forward-looking individuals that believe the best way to manage change is to have a hand in creating it. They are autodidactic continual learners, who generally share optimism for innovation and its impact on mankind. OpenCurrnt DAO utilizes the DAO model because decentralized governance is critical to building and managing a globally distributed community and therefore critical to the success of the OpenCurrnt ecosystem. The OpenCurrnt community governs itself via the OpenCurrnt DAO, the decentralized governance framework that supports the ecosystem Fund. The DAO follows a proposal process to vote on how the ecosystem funds will be used to the benefit of the platform and community. Over time, OpenCurrnt DAO will transition the proposal and voting mechanisms into a full, on-chain platform in a form determined by the community. The DAO can do this by allowing DAO members to lead administrative and program manager roles; creating a community-steering committee; implementing on-chain voting; and voting annually to elect members for the DAO’s Board. The members of the OpenCurrnt DAO will be able to submit proposals and vote on submitted proposals that become bounties if approved. These proposals range from different skills and complexities; from simple proposals to change features on the platform, to more cardinal proposals to change the incentive structure or redistribution of funds. While the former can be suggested by lower rank members and requires some set structure of voting of majority, the latter requires more consensus and can be submitted by a balanced group from the five groups. Bounty contributors will initially receive DA Token based on their contribution to the open-source codes of the platform as it is developed, and Currntcy thereafter.
For more information on OpenCurrnt, you can visit their official website at: https://opencurrent.io/
