DAO Evolution: What was created for governance has been repurposed for purchases
DAO Evolution: What was created for governance has been repurposed for purchases.
Decentralized Autonomous Organizations.
In the beginning there was an idea, and the idea became Bitcoin.
- Imagine if you will, a cryptocurrency token like Bitcoin, which travels across borders freely and functions as a unit of exchange and store of value.
- It was created as independent, not dependent on any government and not controlled by any government.
Then there was the DAO.
- DAO were originally conceived as governing entities for cryptocurrency projects, or at least that is my understanding.
- The DAO came later, I believe, as a formal way for Cryptocurrencies like Bitcoin, which are global in reach, to be governed by a global government..
- ‘But by a governing body
which consists of its users, - and is not governed by any countries elected or appointed officials,
- and is not yet controlled by any of the transnational banking conglomerates, which control the worlds fiat currencies.
Examples of these amazing, utopian, creative and amazing concepts.
- We have seen how some DAOs work, like the Maker DAO for the famous DeFi Lending Platform on the Ethereum blockchain. Or the Uniswap DAO for the largest decentralized cryptocurrency exchange in the world.
- we have learned that group governance, which spans the globe looks completely different then the representative democracies we are familiar.
DAO are also evolving
- What was created for governance has been repurposed for group purchases.
The Constitution DAO
- It used the DAO structure to raise money to buy a copy of the American Constitution.
- ‘It demonstrated the economic power of DAOs to raise money.
- ‘It demonstrated that even though cryptocurrency, the blockchain, and DAOs are new . . . They are still subjected to the same evolutionary pressures of society and they change.
Adding utility, quacking the pace of adoption?
- I think so. I think improved or increased utility, always increases the number of users.
Remember ERC-20 tokens?
- ‘When I think of Ethereum Request for Change number 20, otherwise known as ERC-20 and how an interesting cryptocurrency concept increased the utility of blockchains and caused an economic explosion we now know as DeFi.
- All because of a new use case/ utility of the ERC-20 token.
Remember Non-fungible tokens
When I think of non-fungible tokens, originally conceived as interesting code constructs, which should exist, because fungible tokens exist, but now have exploded in popularity, as utility beyond academic excitement was found. Now we have Open Sea, one of, if not the largest NFT marketplaces in the world. As well as Splinterlands, one of the largest Play for Pay games in the world.
All because of a new use case or increased utility of Non-fungible tokens.
And now we have Constitution DAO, brought about by a new use case for DAOs.
Summary and Last words.
Group governance and group acquisition
The DAO is a structure created for governance and is now used for acquisition.
And perhaps group governance and group acquisition are natural compliments of each other.
We are living in exciting times where the only constant is change.
I think the mass adoption of cryptocurrency and the blockchain is occurring all the time, use case, by use case, as the technology is adopted by people, companies, countries because they figure out how to use it to get something done. Utility, perhaps the single most important determinant of value.
What do you think?
The End .. for now. @shortsegments
