What Is a DAO and How It Applies
In this article I'll be going over what a DAO is and how it's being applied to the music industry. In pervious articles I've gone over why music artists started to fight back and started to take more ownership of the works they create.
With crypto and the internet in general there are becoming fast advancements again across the board which are opening up new possibilities and creative ways of doing things. While we hear about web3 all the time now and a really up in the air idea of what that might look like one thing for sure though is it's ability to give communities and people as individuals power again. This comes in the form of ownership or governance of that platform.
On the flip side of that we have traditional web2 platforms and investors now trying to grab up their share and not relinquish those powers and so introduces DAO or Decentralized Autonomous Organizations. It's a way to split up voting and decision making for a platform by all investors. It's a way for people from all around the world to take part in something and essentially not know who one or the other is.
This new explosion in DAOs I believe is thanks to the explosive nature of DeFi and how quickly it became a thing.
The first steps of a DAO is that the financial transactions are recorded on the blockchain. This open ledger for all to see eliminates the need for any third party service. It also acts in a way as a community standard on a smart contract. This means that all parties need to vote in order for something to change or take effect in the DAO. Compared to a company where a CEO or a board would be the few that make the decisions. Really this is the way governments have become setup so imagine a world where a DAO ran the world. Yeah that would be an interesting little project!
Where DAOs Are Used
We have mainly seen DAOs so far applied to charity, fundraising, borrowing as the main sources. This however is starting to greatly expand and it's expanding into what many are calling the metaverse.
One of the largest examples of this is right here on Hive! The game Splinterlands offers this up in the form of a governance token which is used to cast votes (coming soon) on different aspects of the game. It also gives you a feel of ownership via vouchers and other systems which will be added to SPS governance stakeholders.
What DAO projects are you involved with or looking forward to getting involved with?
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