Why is DAO the natural choice from the market?
Ronald H. Coase, the author of Coase Theorem, asserted that when there is an overpriced cost of participating in market transactions, people will naturally organize together and form some formal institutions, such as associations, partnerships, companies, chambers of commerce or other types of organizations. The so-called “transaction cost” often refers to search and information costs, bargaining cost, enforcement cost, etc.
DAO is a new organizational format under the development of blockchain network and the realization of flat management. DAO gathers individuals with similar hobbies, beliefs and goals around the world through decentralized systems, reducing the cost of information; to manage ownership and governance rights through distributed tokens, and automatically execute rules through smart contracts to solve organizational management issues, so to reduce organizational enforcement costs and bargaining costs. It can be said that DAO can effectively solve all the costs involved in market transactions and avoid the unfairness of interests caused by centralisation.
In a traditional company, there is often a clear hierarchical system. The more to the top of the company, the greater the power and the more benefits. DAO connects organizational members through point-to-point, eliminating the hierarchical system. At the beginning of the establishment of DAO, the ownership and decision-making power of DAO are often given to each organization member by issuing tokens.
DAO is a natural democratic organization, which enables us to fully play our values in a more free way without identity, status, race, gender, location, and etc..
GoodData is a blockchain platform that discovers data value through blockchain and privacy computing technology. In the released decentralized application [GooD Sleep], GoodData adopts the form of “share-to-earn” to encourage users to safely share their sleep data to earn income, which has attracted a large number of users. At present, GoodData is also preparing the launch of DAO. Will the DAO of GoodData further discover the data value? Let’s look forward to it.