Every new technology breakthrough has brought about a change in the way we do our jobs. The introduction of the internet brought about a significant shift in how work was carried out. And now, Web3 and DAOs.
The World Wide Web has now evolved into its third generation, Web3. Greater decentralization, transparency, and shared ownership are some of the defining characteristics of this system, founded on blockchain technology and cryptocurrencies.
Web3 will revolutionize work as we know it. In addition, the decentralized autonomous organization, often known as DAO, will be the driving force behind this movement.
In this article, we will learn how DAOs and Web3 change our work.
What is DAO in Web3?
Introduction of DAO in Web3
A decentralized autonomous organization, better known by its acronym DAO, is a fancy way of expressing an organization where no single person is in charge. You do not have leaders responsible for making decisions on behalf of the organization's members. On the other hand, the DAO's community is responsible for making all appropriate decisions collectively and basing them on an initial set of rules enforced on a blockchain. Members of a decentralized autonomous organization (DAO) must acknowledge and agree to adhere to the DAO's governing rules as a condition of joining the DAO.
Key Principles of DAO
Autonomy: A decentralized autonomous organization (DAO) possesses autonomy if it conducts business using pre-established guidelines written into smart contracts. These rules govern the decisions taken, the distribution of funds, and the organization's daily operations.
Tokenization: In a decentralized autonomous organization (DAO), members often have tokens that signify their stake in the organization. The voting on proposals, the distribution of monies, and the finalization of decisions are all done with these tokens.
Transparency: refers to all members of a DAO having access to information regarding the organization's rules and day-to-day operations. This ensures that decisions are made transparently and democratically and that all members have equal access to the discussed information.
Consensus: An agreement is reached when DAO members use their tokens to vote on different proposals. This is how decisions are made in DAOs. This guarantees that decisions are taken jointly and that the organization runs in the best interests of its members.
New architeture of DAOs
DAOs leverage smart contract structures and digital tokens confirmed on public blockchains, such as Ethereum, to provide members of a DAO with the opportunity to participate directly in the governance of the DAO. Because of this, decision-making in the DAO is now decentralized and dependent on the number of votes, or tokens, that a particular proposal receives. In a decentralized autonomous organization, there are no requirements to sign up for membership; anyone can acquire tokens without prior approval.
A DAO provides its members complete transparency into its operations by codifying all its rules in the form of smart contracts and all its transactions on a blockchain.
Emerge of DAOs in Web3
DAOs are organizations that govern themselves and make decisions using blockchain smart contracts. DAOs aim to unite a community of like-minded individuals to achieve a shared goal without a central authority. With all contracts, judgments, and transactions publicly available and verifiable on an open blockchain, Web3 enables individual ownership.
DAOs support communal ownership in NFTs. Members can only access built-in treasuries and vote on choices during specified times. NFT pricing has risen, making many collections unattainable to individual users.
PleasrDAO lets members share the cost and ownership of NFTs, leveling the playing field and supporting decentralization's accessibility and inclusivity.
DAOs improve Web3 engagement and lessen the possibility of corruption or censorship, from social media DAOs like Friends with Benefits to governance DAOs in play-to-earn gaming. DAOs will survive as they spread to nonprofits, decentralized finance, and NFT collecting. Once consensus is reached, DAOs can make decisions instantly without hierarchical delays.
Currently, more tech and payments giants are adopting Web3 programs. NFTs and DAOs lead the Web3 user uptake in collective ownership and accessibility.
How can Web3 and DAO Change the Future of Work?
As the number of DAOs continues to grow, it's possible that in the future, rather than working for a single company for 40 hours per week, we'll split our time between several different DAOs, each contributing a few hours per week. As a matter of course, early adopters of the space already do this. The creator economy of today, which vloggers, bloggers, and podcasters populate, can give us a glimpse into the working world of Web3. The typical creator earns income from various projects, including coaching, consulting, and monetizing content on platforms like YouTube, SubStack, and Patreon.
Because DAOs focus on technology, more fundamental and algorithmic work might be automated. This would enable contributors to be the most creative and helpful versions of themselves, allowing them to spend more time on high-value activities that stimulate the flow state and less time on mundane, shallow tasks.
Colleagues will have more choices to choose initiatives whose mission and vision resonate with them, jobs that line with their abilities, and values-aligned colleagues to work with, thanks to DAOs.
Voting on critical issues will be possible with the contributors' native tokens for the DAO. Snapshot, a decentralized voting system, gives you a window into the decisions that DAO members are voting on, so you can get a sense of how those votes are going.
What Changes Can Web3 and DAO Bring to Another Area?
In the future, there will be DAOs operating within various industries. The day-to-day activities and interactions will be recorded on the blockchain and represented as NFT coins. Smart contracts driven by AI will enable complete automation of all processes. The future monetary and financial system will be based on decentralized finance and cryptocurrencies. The metaverse will become the activity center as the new underlying infrastructure.
Also, charities gain immensely from the DAO framework. Administrative tasks and fund distribution decisions can cost more than charitable activity. DAOs distribute funds fast and efficiently.
DAOs can increase DeFi acceptance and investment. Cryptocurrency-based DAOs provide low-cost, near-instantaneous peer-to-peer transactions without traditional finance institution restrictions. Members earn higher returns from lending or transaction fees than conventional financial institutions. This space is developing quickly with no signs of slowing down.
NFTs and DAOs to buy and store digital assets enable the creator economy in this social media and content creator generation. Since their brand, fan base, and organization determine the value of their work, creators directly benefit.
Conclusion
As of 2023, there are around 11,000 DAOs. Even though DAOs are still in their infancy, they are already being deployed in various projects. These projects include social media clubs, grant-making, play-to-earn gaming, NFT generators, venture funds, charitable organizations, and virtual worlds. Many assets held in DAOs, measured by total value locked (TVL), are centralized within DeFi initiatives like Uniswap, Curve, Balancer, etc. As there are more technological advancements in this sector, more and more people will join in, and it will affect the future widely.
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