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Why Using DAOs Could Be the
Answer
When blockchain technology was
first developed, its creators
focused on the potential of
decentralized cooperation and
transparency. The concept of
this new form of organization
ensured that the interests of
the whole community were
prioritized.
Despite its decentralized
nature, the prospect of
establishing a decentralized
organization is still very
exciting. It could help us
rethink how we organize
ourselves.
There have been many cases where
decentralized platforms have
been abused to maximize profits
for their shareholders. A
decentralized experience would
allow people to have more
freedom and choice. It would
also allow markets to set their
own prices and provide better
quality to consumers.
DAO Hurdles to Overcome
Despite the promise of DAOs, the
system is still far from
perfect. Even though
tokens have
voting and participation rights
in a DAO, the organization still
has to consider the connections
between real-world activity and
the platform.
Even though blockchain
technology can enable us to
interact with each other more
seamlessly, our lives remain
very much in the physical world.
To avoid becoming a liability, a
DAO must first establish a
method of dealing with
real-world issues. For instance,
if a platform caused an injury,
a participant would need to have
a way of proving their claims.
A physical good that DAO
purchases will also require
various forms of insurance and a
tax accountant. Even though it’s
autonomous, a DAO still has to
follow the same rules and
regulations as an online
organization.
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