【Kun Original Serial 15】Is the Bitcoin community a DAO?

first publication:bitcointalk

Author:RainbowKun

Twitter:RainbowKun

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In my last post, I said that Bitcoin is about revolutionizing the production and distribution relations of human society. The key point is to transform the existing joint-stock company and create a new organizational form, which is DAO.

The members of the Ethereum community are very familiar with DAO. In the past few years, I have been researching with DAO as the center. The business I will start in the future is also a DAO that represents the latest concept of Bitcoin. But for members of the Bitcoin community, they may not be familiar with DAO. I want to discuss with your guys whether the Bitcoin community is a DAO.

Before answering the question, I would like to introduce the composition of a joint-stock company. There are four main roles in the company’s structure, namely shareholders, management, employees and users, that is, owners, managers, workers and consumers. It is precisely because of the continuous collaborative work between the four parties that the company value is finally realized. The company system is mainly used to maintain the relations of production between the four parties. However, the relationship between the four parties has been split for a long time due to the lack of unanimous interests among the four parties.

After the advent of Bitcoin, everything was changed. Bitcoin has created an organizational form that is different from the existing corporate operating model. The prosperity of cryptocurrency is also based on this. It has designed a set of ingenious economic models to enable people with different stakeholders to realize the integration of interests. This form of organization is DAO, which is a decentralized autonomous organization.

I think the Bitcoin community is the first DAO in the cryptocurrency field. It is precisely because of the stable operation of the Bitcoin community in the past twelve years that people have full confidence in cryptocurrencies. I made this conclusion based on the definition of DAO.

In my opinion, DAO refers to a form of organization that can operate autonomously without human intervention and management through a series of open and fair rules. DAO is like a fully automatic robot, when its program setting is completed, it will automatically operation in accordance with the rules. The Bitcoin community is a DAO.

DAO has the following characteristics:

• 1.The organizational form is a distributed autonomous organization, not a company system.
• 2.Based on certain open and fair rules, the organization can upgrade the rules through governance.
• 3.The incentive of the ecosystem is based on Token, and the participants of the ecosystem can obtain various Token rewards.
• 4.Token holders jointly own the control and ownership of the organization, and can determine the development direction of the organization.

Different from the complex and slow mechanism of ordinary companies, DAO is an automatic machine. Anyone can join and withdraw at any time, and contribute their own labor to get the corresponding reward. The Token issued by DAO will become a medium throughout the entire economy and incentivize all participants in the ecology.

DAO is a reform of the traditional company system. People work together through a new type of relations of production, and the boundaries of the company begin to fade. DAO can do many things that traditional corporate organizational forms cannot do, or effectively reduce friction in business activities, and improve the efficiency of relevant participants in the economy.

The Bitcoin community is the most successful DAO. Such as the upper limit of the number, the consensus method of competitive accounting, etc. are all transparent. In the twelve years of Bitcoin’s development, it has not relied on the company for management, and has operated spontaneously in accordance with Satoshi Nakamoto’s white paper. Many people mine and trade in this system, and rely entirely on programs to work automatically.

This is the most attractive part of DAO, and it is also an organization that blockchain technology geeks want to build that is not exploited, automatically operated, decentralized, fully trusted, and capable of self-development.

I think the Bitcoin community is the first DAO organization in the crypto world, and it is also the most successful DAO organization. What do you think?