We are looking back at the past web iterations, reflecting on the present decentralized network, and exploring new possibilities of Web 3.0.
We are looking back at the past web iterations, reflecting on the present decentralized network, and exploring new possibilities of Web 3.0.
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“Whereas most technologies tend to automate workers on the periphery doing menial tasks, blockchains automate away the center. Instead of putting the taxi driver out of a job, blockchain puts Uber out of a job and lets the taxi drivers work with the customer directly”.
Those who participate in DAOs often use this quote from Vitalik Buterin, a co-founder of Ethereum, to explain what real organizational governance reform is. The ideas embedded in this quote are also encouraging DAO participants from all industries to engage in this new and transparent organizational reform. As a word frequently mentioned by crypto enthusiasts and Web3 practitioners, DAO is the abbreviation for “Decentralized Autonomous Organization”.
Breaking down the word “DAO”, the “D” stands for "Decentralized", which emphasizes the decentralization feature of DAO, that is, under the organization form of DAO, the decision is no longer made by a single or centralized individual or institution, but every individual with decision-making rights, therefore achieving collective decision-making and collective voting. The "A" in DAO stands for "Autonomous", which emphasizes automated governance rather than human-intervented execution. The decision rules and operational logic of DAO are defined by smart contracts, which are stable computer programs built and run on the blockchain network, digitally and automatically. In the same way as the contracts in the legal system, smart contracts are also a type of contract, except that the contracts of smart contracts are written and completed by strict computer code, capable of being forced to run automatically according to what the codes defined.
However, it should be noted that DAO is not “completely” autonomous, because the membership of DAO organization still consists of people, and when members within the organization vote and discuss proposals, they still need to output different views on their minds. Therefore, the automated governance relying on smart contracts means the immutability of the rules of the running procedure, while the decision on the resolution still needs to be made with the broad participation of DAO members jointly. Last but not least, the “D” in DAO represents “Organization”, referring to the organizational form of DAO. Particularly, the operation and decision-making are co-managed by the decentralized community supported by the blockchain network by the equity holders.
As a basic organizational form of Web 3.0. DAO has received more and more attention mainly because “there is no central authority or management hierarchy” in a flat, bottom-up DAO, as opposed to the traditional centralized organizational form (Wang et al, 2019). DAOs are often established to accomplish a common goal. Since DAOs run transparently under operating standards and collaborative models jointly defined by their stakeholders, it is easier to build trust and consensus within the organization.
With the numerous possibilities that DAOs can bring, various types of DAOs have emerged, including but not limited to social DAOs, protocol DAOs, and even DAOs that have been transformed from traditional companies.
Here, I take FWB DAO as an example to introduce how a DAO really operates.
Widely regarded as the first Social DAO, the FWB DAO is a Social DAO that uses a strict management system and must be applied for and hold tokens in order to join. The first step to joining FWB is to fill out an application form.
After the application form is submitted, application materials will be checked by a 15-member membership committee. This committee is comprised of members from the FWB community, primarily from artistic and creative backgrounds. According to the statistics released by the committee, the current rejection rate for the first round is close to 60%.
In the second step of the application, although applicants can join the FWB DAO discord community, if they are not approved, they can only view the "Welcome" page and cannot participate in the discussions of the different discord channels.
Once the application form filled in during Step 1 is approved, applicants will also need to purchase a certain amount of $FWB tokens to officially join the FWB DAO. By the time this post was written, the price of an FWB token was around $9.60. As stated on the official website of FWB DAO, there are two types of FWB membership. To become a global member, you need to hold 75 $FWB tokens, while to become a local member, you only need 5 $FWB tokens. It should be noted that in October and November of 2021, when FWB DAO first started to be sought after by the public, the price of each $FWB token was hyped up to nearly $140.
Same as joining other DAOs, once successfully admitted to the FWB DAO, members can join the discussions in different channels of the FWB discord.
“FWB is a network of collaborators. It’s a community of communities. Home to many subcultures, FWB exists as an ecosystem of symbiotic relationships, a decentralized creative studio, and a never-ending group chat. Most of all, it’s an evolving experiment. At our core, we are a growing social DAO with more than 3,000 members—including artists, builders, and thinkers from across the crypto and cultural sectors. Collectively, we aim to catalyze the power of Web3 as a tool for creating and making things happen.”
Consistent with the mission written on the FWB DAO’s official website, the FWB Discord is divided into seven main sections to encourage the exchange of knowledge from different fields. These channels are also classified in a similar way to other DAOs.
General
Learning
Governance
Trading
NFTs
Creative
Lifestyle
In addition to the discord communication space, FWB DAO has many other services open to members, including but not limited to various online and offline events (online events are named “Digital Events”, offline events are named IRL Events), city guides, private materials, etc.
So far, the organizational structure of FWB DAO is divided into seven main parts, this group is continuously envolving.
Works Cited
Friends with Benefits. 2022, https://www.fwb.help/. Access 18, Sept. 2022.
Wang, Shuai, et. al. “Decentralized Autonomous Organizations: Concept, Model, and Applications.” IEEE Transaction on Computational Social Systems, vol. 6, no.5, 2019, pp. 870-878. doi:10.1109/TCSS.2019.2938190.
Turley, Cooper. ”DAO Landscape.” coopahtroopa.mirror.xyz, https://coopahtroopa.mirror.xyz/\_EDyn4cs9tDoOxNGZLfKL7JjLo5rGkkEfRa_a-6VEWw. Accessed 18 Sept. 2022.
Zhang, Alex. “Evolution of the FWB DAO pt.II.” *zhang.mirror.xyz, https://zhang.mirror.xyz/dR4oK4JzxD-48w2M8JyOlHzqSyzU8CnUnPhdMvhIyxs. *Accessed 18 Sept. 2022.
“Whereas most technologies tend to automate workers on the periphery doing menial tasks, blockchains automate away the center. Instead of putting the taxi driver out of a job, blockchain puts Uber out of a job and lets the taxi drivers work with the customer directly”.
Those who participate in DAOs often use this quote from Vitalik Buterin, a co-founder of Ethereum, to explain what real organizational governance reform is. The ideas embedded in this quote are also encouraging DAO participants from all industries to engage in this new and transparent organizational reform. As a word frequently mentioned by crypto enthusiasts and Web3 practitioners, DAO is the abbreviation for “Decentralized Autonomous Organization”.
Breaking down the word “DAO”, the “D” stands for "Decentralized", which emphasizes the decentralization feature of DAO, that is, under the organization form of DAO, the decision is no longer made by a single or centralized individual or institution, but every individual with decision-making rights, therefore achieving collective decision-making and collective voting. The "A" in DAO stands for "Autonomous", which emphasizes automated governance rather than human-intervented execution. The decision rules and operational logic of DAO are defined by smart contracts, which are stable computer programs built and run on the blockchain network, digitally and automatically. In the same way as the contracts in the legal system, smart contracts are also a type of contract, except that the contracts of smart contracts are written and completed by strict computer code, capable of being forced to run automatically according to what the codes defined.
However, it should be noted that DAO is not “completely” autonomous, because the membership of DAO organization still consists of people, and when members within the organization vote and discuss proposals, they still need to output different views on their minds. Therefore, the automated governance relying on smart contracts means the immutability of the rules of the running procedure, while the decision on the resolution still needs to be made with the broad participation of DAO members jointly. Last but not least, the “D” in DAO represents “Organization”, referring to the organizational form of DAO. Particularly, the operation and decision-making are co-managed by the decentralized community supported by the blockchain network by the equity holders.
As a basic organizational form of Web 3.0. DAO has received more and more attention mainly because “there is no central authority or management hierarchy” in a flat, bottom-up DAO, as opposed to the traditional centralized organizational form (Wang et al, 2019). DAOs are often established to accomplish a common goal. Since DAOs run transparently under operating standards and collaborative models jointly defined by their stakeholders, it is easier to build trust and consensus within the organization.
With the numerous possibilities that DAOs can bring, various types of DAOs have emerged, including but not limited to social DAOs, protocol DAOs, and even DAOs that have been transformed from traditional companies.
Here, I take FWB DAO as an example to introduce how a DAO really operates.
Widely regarded as the first Social DAO, the FWB DAO is a Social DAO that uses a strict management system and must be applied for and hold tokens in order to join. The first step to joining FWB is to fill out an application form.
After the application form is submitted, application materials will be checked by a 15-member membership committee. This committee is comprised of members from the FWB community, primarily from artistic and creative backgrounds. According to the statistics released by the committee, the current rejection rate for the first round is close to 60%.
In the second step of the application, although applicants can join the FWB DAO discord community, if they are not approved, they can only view the "Welcome" page and cannot participate in the discussions of the different discord channels.
Once the application form filled in during Step 1 is approved, applicants will also need to purchase a certain amount of $FWB tokens to officially join the FWB DAO. By the time this post was written, the price of an FWB token was around $9.60. As stated on the official website of FWB DAO, there are two types of FWB membership. To become a global member, you need to hold 75 $FWB tokens, while to become a local member, you only need 5 $FWB tokens. It should be noted that in October and November of 2021, when FWB DAO first started to be sought after by the public, the price of each $FWB token was hyped up to nearly $140.
Same as joining other DAOs, once successfully admitted to the FWB DAO, members can join the discussions in different channels of the FWB discord.
“FWB is a network of collaborators. It’s a community of communities. Home to many subcultures, FWB exists as an ecosystem of symbiotic relationships, a decentralized creative studio, and a never-ending group chat. Most of all, it’s an evolving experiment. At our core, we are a growing social DAO with more than 3,000 members—including artists, builders, and thinkers from across the crypto and cultural sectors. Collectively, we aim to catalyze the power of Web3 as a tool for creating and making things happen.”
Consistent with the mission written on the FWB DAO’s official website, the FWB Discord is divided into seven main sections to encourage the exchange of knowledge from different fields. These channels are also classified in a similar way to other DAOs.
General
Learning
Governance
Trading
NFTs
Creative
Lifestyle
In addition to the discord communication space, FWB DAO has many other services open to members, including but not limited to various online and offline events (online events are named “Digital Events”, offline events are named IRL Events), city guides, private materials, etc.
So far, the organizational structure of FWB DAO is divided into seven main parts, this group is continuously envolving.
Works Cited
Friends with Benefits. 2022, https://www.fwb.help/. Access 18, Sept. 2022.
Wang, Shuai, et. al. “Decentralized Autonomous Organizations: Concept, Model, and Applications.” IEEE Transaction on Computational Social Systems, vol. 6, no.5, 2019, pp. 870-878. doi:10.1109/TCSS.2019.2938190.
Turley, Cooper. ”DAO Landscape.” coopahtroopa.mirror.xyz, https://coopahtroopa.mirror.xyz/\_EDyn4cs9tDoOxNGZLfKL7JjLo5rGkkEfRa_a-6VEWw. Accessed 18 Sept. 2022.
Zhang, Alex. “Evolution of the FWB DAO pt.II.” *zhang.mirror.xyz, https://zhang.mirror.xyz/dR4oK4JzxD-48w2M8JyOlHzqSyzU8CnUnPhdMvhIyxs. *Accessed 18 Sept. 2022.
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