Nutbox Trilogy② | Modern DAOs Triangle
We must first clarify on a concept: when we talk about DAO, what do we mean?
What are Modern DAOs？
When most people mention of DAO, they are referring to decentralized governance, but we want to return to the origin of DAO. In order to distinguish DAO from the common belief that DAO is governance, we use Modern DAO to redefine DAO.
DAO is described like this on ethereum.org ：Think of them like an internet-native business that's collectively owned and managed by its members. They have built-in treasuries that no one has the authority to access without the approval of the group. Decisions are governed by proposals and voting to ensure everyone in the organisation has a voice.
Based on this, here is an additional description for Modern DAOs: they should be able to bootstrap with available supportive resources for its community, on top of underlying financial and technical foundation within the Web 3.0 ecosystem.
Modern DAOs Key Triangle
Decentralized governance is very important for Modern DAOs and can be used as one of its core components, which is recognized by everyone.
In addition, in 01 | Crowd-Staking as a Bootstrapping Method, we believe that the blockchain has introduced new Bootstrapping methods to the launch of decentralized networks.
Whether it is PoW, PoS, or Liquidity Mining, every economic mechanism has brought about a major explosion of blockchain networks. PoW, PoS, and Liquidity Mining have also become unique Bootstrap methods for decentralized networks.
Therefore, we believe that the new Bootstrap methods are part of the core components of Modern DAOs. Among them, a new Bootstrap method —— Crowd-Staking, is taking shape and will become a key component of the launch of future Modern DAOs.
Myriads of profitable, customizable and sustainable services could be set up by the Modern DAOs to benefit the entire Web 3.0 ecosystem world and contribute to the public goods.
As a result, Modern DAOs would grow their own values, and bring long-term returns for its members who contribute to the DAOs.
This is consistent with the logic of modern companies that increase the value of organizational assets by providing products or services to the outside world. Therefore , DAO Services is also a key component of Modern DAOs.
From this, we have derived the key triangle of Modern DAOs: Crowd-Staking, Governance, and DAO Services. Crowd-Staking has enabled Modern DAOs to achieve a cold launch of the network. Through Governance, DAO allows the development and operation of the community to develop DAO Services. DAO Services generates value and further promotes the positive cycle flywheel of Modern DAOs.
A Real-life Example of Modern DAO: Peanut
Nutbox Peanut network is the first Modern DAO created by Nutbox.
Through the small cycle of Crowd-Staking and the large cycle consists of the key triangle of Crowd-Staking, Governance, and DAO Services, Peanut has developed into a modern DAO driven by the community with sustainable development.
Crowd-Staking：In the Peanut community, STEEM POWER (SP for short) holders delegate the SP to the Peanut community and receive PNUT. Peanut.mine receives the staking reward from the delegated users' SP. In return, Peanut repurchases PNUT on the decentralized exchange, and injects the value into PNUT.
Governance: When the SP delegatees receive PNUT, 10% of PNUT will be automatically allocated to the Peanut DAO.Fund. Community contributors can submit Proposal to DAO.Fund through the Peanut Proposal System and apply for PNUT rewards.
DAO Services: Community contributors, with the support of Peanut DAO.Fund, develop various services and applications for Peanut, and provide services for community members or other users. With the continuous increase of services, Peanut will receive ever-increasing income, and this part of the income will be automatically allocated to the Peanut.mine account to repurchase PNUT.
Based on the successful use case of Peanut, Modern DAOs will become more widespread through the key triangle.