DAOs and the Future of Work
DAOs as the new coordination layer for humanity
DAOs or Decentralized Autonomous Organisations have taken the crypto ecosystem by storm. “Just DAO it” is the new catchphrase in vogue and will probably be here in times to come, especially as we enter the time what many people are predicting will be the “DAO Summer of 2022”.
In continuation of our last post in which we talked about Social Tokens and Timeswap, we go over DAOs, the impact they could have on the economy and work in general, and how Timeswap could play a key role in their utilities in the future.
But, what are DAOs?
A DAO is often described as sort of a “Reddit community with a bank account.”
In an attempt to formalise this definition, we can say it’s an organisation structured in a way that the control and ownership of its decisions are decentralised and spread out amongst its members through some rules that are enforced on the blockchain.
DAOs are structured in different ways depending on their goals and decisions made by the community/core members. However, smart contracts are at the heart of most DAOs because code being law is an integral part of what makes an organisation a DAO.
Another key feature of how many DAOs function is the distribution of the decision making powers which are usually done proportionately to the amount of contribution each person makes to the DAO. This is a step up from the organisations of web2 as it not only goes away from the traditional corporate hierarchies but also gives each member a say over what moves should the organisation make next.
Different Types of DAOs
There is a myriad of different kinds of DAOs out there that solve for different use cases. One could divide them based on the industries they’re involved in, the way they’re organised, or the services they provide. Here is a list of some of those types, as also mentioned in the DAO Landscape blog by Cooper Turley.
The possibilities of what a DAO could be used for are also endless, and hence this list is most likely to be non-exhaustive for a long time.
Protocol DAOs are a way for projects and protocols to transition power from the core contributors to the community.
These DAOs usually issue ERC-20 tokens to the community which have secondary value in the market as well enabling them to have governance rights. Token holders have the sole authority to propose, vote on and implement changes to the underlying mechanics of the network. This makes it possible for a project’s community to be the owners as well as operators of the project.
There are so many things happening in the crypto world and Service DAOs are at the heart of it all. These act as a focal point for talent in the crypto ecosystem and also allocate resources as and when needed.
These also open the horizon for liquid teams, sub-DAOs and decentralized working groups in a wide range of domains from marketing and community to code. Service DAOs are at the frontline of exploring what the future of work in a decentralized world potentially looks like.
Social DAOs are an attempt to establish collaboration and friendship between a group of strangers on the internet. They are optimized for community maximalism instead of money and provide a platform for people to meet each other and eventually become co-workers.
These are essential to the crypto world because they bring the community aspect of the industry to light and help people establish networks that would not be possible without them.
With so many projects being built every day, it was only a matter of time before the web3 version of traditional venture and hedge funds came into existence.
Members of Investment DAOs come together and pool resources to invest in projects that the community believes in.
Media DAOs give the power back to the consumers of content on the internet.
These enable the community to participate in what content type of content goes out, what the story is, what makes it to the front page, what the content of a story says, and how and where the content is distributed.
“Media DAOs turn consumption into a two-way street.” Cooper Turley
DAOs and Timeswap
As with Social Tokens, Timeswap permissionless design offers a plethora of use-cases for DAOs to benefit from, especially with their governance tokens.
Since Timeswap enables permissionless, oracle-less, and non-liquidatable money markets, a DAO and its members will be able to lend, borrow or be a liquidity provider to pools using the DAO’s governance token.
This would enable the members of a DAO access to liquidity without losing ownership of the DAO’s token.
Since anyone can make pools on Timeswap, it could also be used by DAOs and even other organisations to borrow capital to fund their projects and ventures using their own tokens without losing ownership.
Since loans on Timeswap are based on fixed maturity, there is no risk of being liquidated and hence, it is an ideal mechanism for organisations to raise debt capital.
Timeswap is leading the way in bringing a paradigm shift in how creators, communities, and DAOs use Social Tokens and NFTs to create and capture value for their members and followers as we enter into the new age of Ownership Economy powered by web 3.