DAOs and Web3 Just Got Their Killer App — DAODOA, a DAO of all DAOs
Today, that killer app and DAO — DAODAO — launched to the public, and it is currently looking to raise an additional $100,000 via a token sale.
If you talk to Web3 investors, one common theme that comes up when they are asked about the future of the internet, is the potential of DAOs (Decentralized Autonomous Organizations). DAO is a term that you will begin to hear more and more about as the internet moves away from Web2 and closer to Web3.
DAOs have already been taking the Web3 world by storm, but what are they and why is today such a huge day for the future of DAOs?
What Are DAOS?
Telling you that a DAO is simply a ‘Decentralized Autonomous Organization,’ probably doesn’t do much to answer the question, so let’s dive a little deeper into how they function.
Today’s web2, as well as the economies that they are built on, require something we are all too familiar with; TRUST. When you purchase merchandise online, you trust that the centralized service you are using to purchase that item functions correction (i.e. Etsy). You also trust that the merchant selling that product will sell you the item that they promised. On top of this, you must trust that your credit card will work correctly, and that the postal service (or other delivery service) will deliver that merchandise to you on time. In this chain of events, there is a lot of trust to be put forth, and a lot needs to go right within the entire process for you to complete the transaction.
In the perfect web3 scenario, trust is no longer a factor. Using smart contracts and computer code, along with blockchain technology and likely the cryptocurrencies tied to those chains, the factor of trust can essentially be eliminated. This is where a ‘Trustless’ internet is born, and this is where the potential of DAOs shine through.
In the simplest form, and using non-web3 terminology, DAOs are groups of people gathering together for a specific cause. That cause could be anything from setting up a new startup company, to attempting to purchase the U.S. Constitution (this actually happened with the Constitution DAO). One typical commonality within DAOs is a fundraising aspect. Perhaps a DAO wants to purchase hundreds of Leonardo da Vinci paintings and then build a for-profit museum for it in da Vinci’s hometown of Anchiano. This is how the process would work:
- A few da Vinci fans would gather together and come up with the original idea to raise funding in order to create this museum.
- They would decide to mint (create) 1 million digital tokens each representing a 1/1millionth share of the DAO.
- They would then decide that they want to raise $1 million for the project, thus selling the tokens for $1 a piece.
- Some people would decide to buy just 1 token, while others would decide to buy more. Maybe some “whales” would purchase $50,000 worth (50,000 tokens — 5% of the DAO).
- Once the funding is raised, each coin equals 1 vote in any decision the DAO decides to make. For example, they may want to decide on the size of the museum, so they would come up with different options and poll the DAO members to determine the size that the majority of the tokens held desire. Someone with 50,000 tokens would count 50,000 times more in the voting process than someone with just 1 token.
- Voting would be used to make all important decisions for the DAO and the DAO’s museum project. They could even elect to raise more funding by voting to mint more DAO tokens, thus diluting the ownership in the DAO in return for a larger treasury. This process of voting and decision making is called the “governance” of the DAO. DAOs are governed by their DAO token holders.
- Once the museum is complete, the DAO could vote to disperse a certain percent of their revenue generated (from selling museum tickets, etc) to the token holders. Again those owning more tokens would receive more of the revenue than those holding less.
- Eventually some of the original DAO token holders will want to get out of the DAO. They could simply do this by selling their DAO tokens to someone else, potentially for a large profit (if the concept was succeeding) or even for a loss (if the concept didn’t work out). The buying and selling of these DAO tokens could take place on a decentralized order-book exchange like DAODAO.
So Why is Today a Big Day?
Today is a huge day in the world of Web3 because of the launch of the first decentralized DAO platform, marketplace, and decentralized order-book exchange, DAODAO. It’s the first product of its kind that aims to become the Coinbase or OpenSea of DAOs. DAODAO not only provides end-to-end solutions for all new DAOs but it’s actually a DAO itself (hence the name DAODAO).
The platform and the public launch of the DAODAO DAO (I know it’s funny to say) just took place moments before this article was published, and they are also in their initial post-launch fundraising stage. Having already raised over $1 million in a pre-launch NFT sale, they look to raise an additional $100,000 in their “Round 1” post-launch sale. The free market has already taken these DAO tokens up from around 1 cent (pre-launch) to 14 cents (midday today).
To learn more about DAODAO check them out at: https://daodao.io/d/DAODAO?invite=2LFEy2z7