(15) What are DAOs? (Plus The Launch of the $TPRO YouTube Edu Cycle) 😻
GM, Web3 Adopters! 🌐
We are dropping $TPRO promotional activities as fast as new stimme checks before elections!
Just kidding :)
However, today we are proud to announce another initiative for the $TPRO community.
We are launching an educational cycle of videos published on the YouTube Channel.
Inside, our CEO Lukasz Szymański is unpacking the crypto mysteries.
In the first episode, he described the operating principles for the DAO.
If you are a crypto enthusiast that wants to broaden your knowledge about key aspects of the blockchain industry, you can’t miss this film!
Table of Contents 📝
- What are DAOs?
- A knowledge pill about the governance
- DAOs in practice
- The edu cycle on our YouTube channel
What are DAOs? 🤔
The word “DAO” consists of 3 letters. So let’s dive deeper into the rabbit hole and check the details of this formation:
- D stands for decentralized. It means that inside the DAO, no central entity controls the operations of the whole organization. Decentralized also implies that the DAO operates on the decentralized infrastructure (on the blockchain). Not only that, but also the power distribution is based on token holders and the number of tokens they hold (or their commitment).
- A comes from autonomous. It means that DAOs are independent of external factors and have self-governing systems. In other words, there is no Top-Down corporation scheme where the high-positioned staff makes all the decisions. Here, there is the bottom-up decision-making process, where DAO members can make proposals on their own.
- O stands for the organization — DAOs are groups of people with the same values and strict resources. They manage these resources by collective decision-making mechanisms to achieve the common goal.
A Knowledge Pill About the Governance 💊
As you read before, one of the most crucial elements of each DAO is the governance system. It is used by organizations to make critical decisions on the use of DAO’s resources.
Are you curious what’s the origins of the governance system?
As human beings, we are not rational. There is even a separate field of study for Behavioral Economics, which means that we are not as rational as we think during our decision-making.
There are dozens of things that influence the outcome, especially cognitive biases.
That’s why we need an advanced decision-making system that is still being improved (because the current model does not solve the problem of the way our brains make decisions).
Proposals ✉️
Moving on, an inherent part of DAOs is the proposal system.
Proposals are given under voting by ordinary group members.
DAOs are different from traditional decision-making systems because, in most DAOs, anyone can put a proposal.
And if the group is in favour, the decision can be implemented.
In the regular system, only a narrowed group of people can put the proposals under voting.
Who can vote? ✌️
However, one question can appear: who can vote on the proposals?
And how is this method different from the election model?
We got you.
In normal life, 1 person equals 1 vote.
In DAOs, it’s not the case because your voting power depends on your commitment.
One person equals one (or more) wallet (s), and the voting power depends on your contribution.
In other words, the voting power is not only dependent only on the number of tokens hold.
One of the critical aspects of calculating the voting power is your approach. For example, some projects measure it by giving more voting power to the people that locked their tokens for a long time in their staking pools.
DAOs In Practice 🙌
To sump up: DAOs are groups of people that share the same values and goals and work on the same projects. They rely on the blockchain or other decentralized solutions to fulfill the aspect of being autonomous and independent.
Here, you can check different types of DAOs:
And via Snapshot.org, you can explore the world of different governance systems:
The Edu Cycle on Our YouTube Channel
In the end, we would like to remind you of the new educational program, where you can explore the details of the crypto world!
It’s a series of videos (published on our YouTube Channel) explaining the fundamentals of the blockchain space.
If you want to get notified about the next episode, subscribe here.
Bottom line 📝
Thanks for your time. We are on a mission to decentralize everything possible!
Follow our social media to stay up to date and not to miss the next episode.
