# Summarized version - DAOs: Absorbing the internet - Koreanpaper.eth - Medium

**Published by:** [jihwan.eth](https://paragraph.com/@jihwan/)
**Published on:** 2021-11-19
**URL:** https://paragraph.com/@jihwan/summarized-version-daos-absorbing-the-internet-koreanpaper-eth-medium

## Content

Actionable insights DAOs are a new way of organizing people.DAOs seek similar ends — the creation of value similar to company structure — but rely on a decentralized framework in which workers, users, and other stakeholders have true ownership of the entity. Various types of DAOs have emerged to serve different use-cases.There are DAOs for investing, DAOs for building new products, DAOs for socializing, and many iterations both between and beyond. Meaningful assets are being managed by these entities. We’re still early when it comes to DAO infrastructure.DAOs have many of the same needs as corporations, but must often deal with greater complexities given their scale, fluidity, and technical stack. DAOs have clear vulnerabilities that have yet to be fully addressed. Introduction We did not always work for companies. 1820 just 20% of American population worked for an organization after industrialization and by 1950, 90% of the populace depended on companies consolidation of workers under large organizations with centralized command systems A better alternative; DAOs Definitions. Explaining what a DAO is and how we might think of them. History. The origins of a new organizational structure. Categories. The diverse types of DAOs that exist. Culture. The values and philosophies that underpin the space. Landscape. Key players and the tools they use. Starting a DAO. Exploring the benefits of going decentralized, and the tactics needed. Legal issues. Promising developments in Wyoming, and open questions. Against DAOs. The vulnerabilities of the structure and its unproven potential. Frontier. Exploring what the future might hold. History and lore Ethereum Whitepaper [DAOs are] a virtual entity that has a certain set of members or shareholders which, perhaps with a 67% majority, have the right to spend the entity’s funds and modify its code. 2 Types of DAOs Decentralized Autonomous Corporations (DAC1) 1 share = 1 vote Decentralized Autonomous Communities (DAC2) 1 member = 1 vote The DAO hacking issue What is a DAO? Simply put — decentralized autonomous organization Critically, Decentralization and autonomy are sliding scales DAOs — are entities geared towards a shared purpose: the creation of value Characteristics how DAOs differ from other organizations Ownership distribute ownership to a variety of stakeholders in the ecosystem DAOs are owned by the ppl who create value in them Organization stakeholders choose their own labor and self-organize Frameworks how DAOs operate tactically DAOs as companies DAOs have departments which have a team lead that guides and supports other members Teal organization DAOs as coops owned and controlled by the workers that contribute to it DAOs as networks distribute ownership to a range of different stake holders most useful framework in DAOs 13 ways of looking at a DAO https://twitter.com/divine_economy/status/1453480931487006728?s=20 Types of DAOs similar as what types of LLCs exist? — technically oriented or socially-oriented Technically-oriented DAOs focus on building in the crypto space on-chain actions Socially oriented DAOs bring together groups of people find ways to interact and convene Protocol DAOs collaborative entities that exist to help build a protocol MakerDAO, Sushi, Uniswap, Compound Social DAOs to create a powerful community FWB, Seed Club, CabinDAO, Bright Moments Investment DAOs to aggregate capital and investor for deployment The LAO, Flamingo, Neptune, MetaCartel Grant DAOs many early DAOs geared toward patronage, operating as Grant DAOs seek to advance broader ecosystem, promising projects Uniswap, Compound, Audius grant program Service DAOs talent aggregators pulling together human capital directed towards certain projects RaidGuild, PartyDAO, DAOhaus, Yam DAO Media DAOs produce public content collaboratively Forefront, Bankless, DarkStar Creator DAOs fan clubs + contributor social tokens Roll, Leaving Records, Personal Corner Collector DAOs unite contributors around certain assets or collectibles curators for certain projects SquiggleDAO, MeebitsDAO, PleasrDAO, NounsDAO Philosophy and culture two traits seem to be particularly commonplace across the DAO landscape Acting like owners elevate the individual and give users a chance to contribute and own Radical transparency establishes trust between all players incentivizes collaboration over competition empowers individuals to take ownership because of their deep understanding of organizational context Landscape players across core functions Formation Aragon, Syndicate, Orca, Tribute, Colony Aragon provides suite of applications to create, manage, and govern DAO Syndicate democratize the world of investing Orca Pod Model https://orca.mirror.xyz/Y2xvPmB4cJH51srGqY6Mm_g38lV-7cwvtyDePnyzfAE composability Tribute fundamentally modular Colony start a DAO without any coding needed includes membership management, treasury tooling, infrastructure for governance Communication Discord, Telegram, Twitter Coordination coordination especially at scale Coordinape helps DAOs coordinate and distribute resources to contributors Circle product- allows DAO contributors to gift tokens- creates compensation map Collab.Land offers token-gating bot for Discord and Telegram similar — Guild SourceCred used to measure and reward the contributions of individuals to a project Grain — used as a wage-equivalent DAOhaus no-code platform for launching and running DAOs on a framework built by MolochDAO Compensation how DAOs compensate contributors, payroll for DAOs Superfluid allows for programmable cash flows streams of value so that compensation automatically flows to a DAO’s contributors Sablier financial streaming platform truly autonomous- team that created this project burned their keys Governance hardest problems DAOs face today, permissionless access: a double-edged sword Snapshot offchain, gasless voting platform SafeSnap- product by Gnosis, allows on-chain execution of off-chain voting vote off-chain ← saving on gas fees and enacted on-chain later Discourse forum- for formal discussion and feedback on proposals Treasury Llama DAO that focuses on assisting other DAOs with treasury management created dashboards, reports, treasury management guidelines Parcel a treasury suite Gnosis provides a better user-experience for DAO multisig wallets Other notable organizations PartyDAO, Mirror, Seed Club, FWB, The LAO, MetaCartel, Moloch, Rabbithole Why start a DAO? 3 core reasons 1. Ease of capital formation easiest ways to pool funds 2. Shared upside crypto tokens provide a fluid way of rewarding an array of stakeholders some DAO tokens have risen → introduced grant programs and fellowships 3. Transparency DAOs communicate, onboard, transact, and govern in public Communication public channels which anyone can join to learn more about the project Membership on-chain public records membership composability, rewarding anyone with other DAO’s token Governance members can propose new initiatives and vote on key decisions DAO structure does not have clear benefits How to start a DAO Sell some NFTs, seed your community with cool people, gate a Discord, and drop some tokens Call to adventure mission and vision describing what participants are buying into with a DAO Distribution of ownership airdrop bounties purchase of tokens Governance process of building legitimacy in the decisions taken by the DAO or teams operating within the DAO most common method of decision making Token Weighted Voting How a bill becomes a law Discussion and shaping Formalization of proposal Voting on the proposal Execution of the proposal Incentivization and reward DAO incentives include: Token rewards Social capital Bill-paying tokens DAO rewards Bounties Grants Coordinape Circles Salaries Working for a DAO Choosing your discipline Community managers Recruiters and promoters Scribes Artists Engineers Treasureres Game designers Digital marketers Finding the right role no formal discovery process Onboarding ex) weekly new joiner sessions and provides detailed guide Collaborating Getting paid Legal questions Wyoming recently passed a law that grants legal company status to DAOs that operate on a blockchain Unincorporated Not for Profit — UNA structure a group of individuals want to form an association without having to formalize it through registration Against DAOs Fiduciary responsibility Minority protections DAO reading list Squad Wealth by Other Internet A Prehistory of DAOs by Kei Kreutler DAO Landscape by Cooper Turley The DAO of DAOs by Packy McCormick State of the DAOs by Bankless Organization Legos by Nichanan Kesonpat Sushi and the Founding Murder by Mario Gabriele The New Coordination Frontier by Gitcoin x Bankless Come for the creator, stay for the economy by Patrick Rivera A beginner’s guide to DAOs by Linda Xie Protocols and Creator DAOs by Darkstar

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