Explore the trends of DAO in the post-Internet era and who will be the new dominant mindset?
The entire history of human development is a history of changes in production relations. In the long history of human development, production relations have undergone numerous changes, from public ownership to private ownership to share ownership, and each change has been accompanied by a tremendous development of productivity and an increase in inefficiency. Today, the joint-stock system of production is almost the most advanced form of organization on the planet, and almost all of the global oligarchs in every field are joint-stock companies. This allows operators and owners to work together to create huge benefits of the organizational form in the manufacturing era is completely invincible, but when human society developed into the era of the virtual economy, the shortcomings brought by the share system began to ensue.
The three keys to the virtual economy
In the virtual economy era, the first generation of Internet natives received the news as well as information from portals, people at that time just started to contact the Internet, content production is mainly through the form of PGC produced by professional editors and content producers, all users are passive to receive exactly the same content, portals are still shareholding companies profit through advertising fees, content producers are their The main cost, Internet users only have traffic value and advertising value. We later had a special word to describe this era: WEB1.0. WEB1.0 period gave birth to many heroes of that period: Yahoo, Amazon, eBay, Microsoft, Google, and other first Internet giants, because they appeared so that people can receive information and news faster, but also because people are not just satisfied with passive acceptance of information, people quickly entered the WEB2.0 period.
After entering the WEB2.0 era, a very large number of Internet content platforms appeared in the world: Twitter, Tiktok, YouTube, Instagram, and so on. These platforms all have a common feature: user-generated content (UGC), the platform provides a platform for Internet users and content producers, everyone can generate content and share it with everyone, in this period the Internet platform is still a shareholding company, the way of profit is still through advertising, except that Internet users can produce their own content, so on the platform ushered in a content explosion, countless Internet Users produced content with their own knowledge and experience and shared it with everyone. More and more people converged on these Internet platforms and the result was that the strongest became stronger and an oligopoly began to emerge on the Internet platforms. The countless content producers on the platforms did not gain any revenue, and all the advertising revenue was siphoned off by the platform, instead, people also shared their data and user behavior to the platform for free.
This is the Internet 2.0 era we are experiencing now, people know it is unreasonable but still can’t change it. As long as it is still a shareholding company will never let the platform users make money, whether you are a content producer or an ordinary user, only the Internet platform shareholders can always make money. Now the companies that can survive are the winners of the market competition, and the one that can beat Tiktok will never be another shareholding company similar to Tiktok. Unless a new model emerges…
Two conjectures about the future
For the future, people always hope that the world will become better and better, people will become richer and richer, and society will become fairer and fairer, but different people give different answers on how to achieve these goals. There are two voices that believe the opportunities of the next decade will be born in these two areas.
First, the interaction of data and machines
This school of thought that the past few decades with the development of the Internet and mobile Internet, human interaction with the Internet has reached its limit, people are always on the Internet and contribute data, people contribute data is basically close to saturation, it is no longer possible to grow massively, and the trend of networking machines and intelligent hardware around us has just begun, more and more machines and hardware will be connected to the Internet and the resulting huge data will generate greater value, around the hardware access to the Internet 5G and chip industry has been booming in recent years, this is the most certain opportunity in the next decade.
Second, the rise of WEB3.0, the popularity of the creator economy
People who hold this school of thought believe that the rapid development of the Internet in the past decades has brought people great convenience in accessing consulting services and has also given birth to many new industries, in which people share their experience and knowledge, share their data and user habits, but the most profitable is not the majority of Internet users, but the Internet platform. How to share the profits of the Internet platform to the majority of content producers and Internet users, and how to use blockchain technology to bring the Internet into the WEB 3.0 era to achieve the creator economy will be the most certain opportunity in the next decade.
What is DAO and what does it do
The development of blockchain technology has exploded unprecedentedly in these recent years, and blockchain has brought a lot of new concepts and new things to people. Even the Internet industry, which represents the most advanced productivity, has started to call itself indigenous, the cryptocurrency world one day on earth one year, from decentralized electronic currency to smart contracts, from ICO to DeFi, NFTs, meta-universe, the industry creates a brand new concept and industry every once in a while, like the Internet in its heyday, and now the blockchain industry is more and more mentioned by everyone: DAO
A DAO is a distributed autonomous organization, which is an organization represented by rules encoded as a computer program that is transparent, controlled by token holders, and not influenced by a central authority. a DAO uses the blockchain to validate transactions, and everyone in the DAO can post proposals and vote to make decisions. Once a proposal is voted on, members of the DAO organization immediately begin implementing it. It is such a seemingly idealistic organization that is now taking over more and more blockchain projects.
Both DAO and joint-stock companies can maintain and operate a profitable project, but the main differences between them are as follows:
1. A joint-stock company has a clear committee (board of directors) to execute decisions, while DAO is a company where everyone can initiate proposals and vote on them, with the decision-making power depending on the majority of the members.
2. A joint-stock company provides products to users, and shareholders earn money from users. DAO is to provide products to its own organization members and users, who can also be shareholders.
3. A joint-stock company has a physical entity, an office address, and a legal system. DAO, on the other hand, does not have a physical entity and uses a distributed office without a legal person system.
Due to these characteristics of DAO, the members of the organization can quickly collaborate and work across borders, and the efficiency of internationalization is greatly improved. As the project is operated by DAO, its users are also its token holders, so as long as the project generates revenue, this revenue will be distributed to all token holders. In this way, DAO solves the problem that traditional shareholding companies cannot solve: distributing the cake to all platform users. Following this logic, we will immediately come to the conclusion that DAO is the most appropriate appearance of WEB3.0. But one can’t help but ask: can a loosely decentralized organization like DAO really compete directly with international giants instead of joint-stock companies? The efficiency of a centralized organization is high, but the decision is not democratic enough and easily influenced by a few people, while the efficiency of a decentralized DAO is not high, but the decision is fair enough. The answer is: it is not clear.
DAO as a new productive organization is not an order of magnitude in terms of the number of the market value of projects operated by the company, and it is still too early to say that it is a challenge. But its existence has opened a door to us, like opening Pandora’s Box, making the future infinite possibilities. Perhaps the emergence of DAO is just a flash in the pan and will eventually disappear in the river of history. But history is always like this, there are new people coming, there are old people going so that the jungle is happy and lively.
Postscript: This is the first article in our series on DAO, which tells us what DAO is and what problems it solves in general. In subsequent articles, we will focus on the types of DAO and existing mature DAO organization cases to lead you into the door of the DAO world, and through NnsDAO to create and realize the real DAOn world.
Author: Chen
Website: https://nnsdao.org
White Paper 1.0: https://github.com/NnsDao/nnsdao-org/blob/main/static/NnsDAO_Boundaryless_Autonomous_Organization.pdf
Telegram: https://t.me/NnsDaos
Twitter: https://twitter.com/NnsDaos
