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In innovative business, there is no place for bureaucracy, and decision-making is lightning fast. If you are late, a competitor comes along and steals the show - I mean, money.
Hence, traditional forms of governance usually assume numerous layers of management for the coordination and enforcement of processes. This comes with a drawback: many operations can become a bottleneck or a source of corruption.
The community, or each member of DAO, reviews, records, and maintains all the tasks, proposals, and updates using a blockchain. However, some experts believe that one can’t achieve fully decentralized governance.
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A minor bug in an application on Ethereum led to the loss of 3.6 million ETH (the equivalent of $70 million at the time).
The Ethereum community reacted quickly and regained control: it presented multiple proposals to deal with the exploit. As a result, they froze the tokens leaving the hacker unable to finish his gateway.
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Aragon protocol enables a plug-and-play process of creating and managing decentralized organizations. Communities get a powerful tool to organize themselves around capital assets, currency, or tokens. The latter can increase in value as more people hold and use them to participate in the life of these communities.
MakerDAO , governed by MKR stakeholders. on-chain governance and off-chain discussion for general feedback. It is used before on-chain voting to evaluate the overall sentiment about issues affecting the MakerDAO ecosystem and determine a consensus regarding their resolution.
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Open tokenized governance gives a lot of opportunities for developers (DApps creators) and users (token holders).
DAO assists developers and entrepreneurs with user communication, regular feature updates, and necessary funding.
For early adopters, it can be considered as a long-term investment and source of regular rewards. And for the community in general, it gives a clear understanding of the decision-making process.
DAO is the future of organizations. It can make them more secure and give their members a voice. Open tokenized organizations could reduce corruption since all decisions are made by the community, open for review by anyone, and can’t be altered by third parties.
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