J9 Number Theory: Macro Analysis of DAO Characteristics

DAO (Decentralized Autonomous) can be understood as a blockchain-based decentralized organization with smart contracts as its operating principle.The development of DAO gradually began to cover various community and business needs. DAO has the following outstanding characteristics:

1. Broader network

2. Lower capital risk

3. More democratic investment decisions

4. More transparent operations

5. Quit more flexible

To understand the benefits and tradeoffs of a DAO, the first thing to do is to define what is a DAO?Learn about the various types of DAOs, outline their vision, and learn about the different DAO tools and governance structures currently available.

DAO stands for "Decentralized Autonomous Organization".DAOThe general purpose is to make collective decisions in a way that is more decentralized, transparent, and trust-minimized than traditional organizations.In simple terms, a DAO is a new type of human organizational structure that allows people to work toward a common goal based on a shared understanding, and all participants can independently confirm the organization's operations.
One of the unique features of DAO is that it uses blockchain-based smart contracts, which fix their decision execution and ownership assignment in code. The combination of smart contracts is the basis of its innovation, because in theThe code running on the blockchain (i.e. smart contracts) is publicly auditable and network protected by decentralized nodes, ensuring that the DAO’s rules and management are open and transparent to all members and prevent tampering by internal members or external entities.
It's worth noting that while the word "Autonomous" is part of the term DAO, DAOs are not fully autonomous, DAOs are made up of humans and therefore require manual actions from users to run, such as requiring users to vote, deploying code and debating proposals, humans still need to interact with smart contracts (provide inputs) in order for them to perform related actions (outputs).

DAOThe Future

At the end of the day, DAOs are just a new tool, a social construct designed in a trust-minimized way.However, DAOs are not the ultimate solution to all governance problems that have plagued society for thousands of years.
The truth is, there is no perfect governance system.Web3 provides builders the ability to experiment with governance systems more flexibly, and users have the opportunity to directly support protocols for governance systems that align with their personal values ​​and beliefs.Some may prefer no governance, some may prefer to have complex systems and participate in more governance, that's fine.People’s opinions also evolve over time, some DAOs may fail and some DAOs may succeed and thrive.
This is an exciting area, we don't know how the DAO will develop in the future, and Web3 builders don't need to rush to launch a DAO of their own.I hope that with enough experimentation, a DAO design market emerges that supports a wide range of values ​​and diversification, and at the same time, the governance transparency and trust minimization of the entire market can be further improved, and show sufficient vitality to compete with the Web2 system.

Risk warning:

The content of this article is only for information sharing, and does not promote or endorse any business and investment behavior. Readers are requested to strictly abide by the laws and regulations of the region where they are located, and do not participate in any illegal financial activities.