Since the concept of “The DAO” was born, distributed autonomous organizations have been undergoing iteration and development, and distributed collaborative applications led by community consensus have become more and more extensive, playing a pivotal role in the Web3.0 era. According to statistics, there are more than 4,200 DAO organizations in the Crypto world today, and the scale of treasury assets under management exceeds 8.1 billion US dollars.
What kind of magic does DAO have that make people flock to it, and what kind of changes will it bring to the world? We will analyze the value and significance of the existence of the DAO organization on the core functions and interest structure of the DAO.
First, conceptually, DAO ( D ecentralized A utonomous Organizations ) has three core characteristics:
Decentralization: not subject to decentralization or separate management by a single institution or enterprise;
Autonomy: Members in a DAO organization can perform actions automatically through decision voting without the intervention of any external force;
Organization: The members of the DAO make and abide by the same rules, which are managed by the members themselves, just like a fixed organization.
According to Jason Yanowitz, co-founder of crypto trade publication Blockworks, DAOs have a “completely flat hierarchy.” ” It’s a way of governing people differently around a shared balance sheet.”
Why do we need DAOs?
In the Internet, once funds and money are involved, the two parties cannot always be connected in the most efficient trust model. But in the DAO organization, you don’t need to trust anyone else in the members, you only need to trust the DAO code, which is 100% transparent and verifiable by anyone, and can perfectly ensure the absolute efficiency and convenience of the exchange of funds and interests. This opens up many new opportunities for global collaboration and coordination.
In this regard, we take the operation and governance model of EGG DAO, a very popular guild financial DAO, as an example:
First of all, EGGDAO is a guild-based financial DAO created and launched based on the Meblox platform. It was jointly initiated and established by the crypto community and the Metaverse Guild. Technical Support.
Meblox is a one-stop DAO creation, launch, governance and application service platform developed based on the BSC chain, providing all individuals, teams, projects and organizations with a full range of basic services related to DAO. Based on the decentralized nature of the Meblox platform, EGGDAO is jointly initiated by the community, and its creation and launch are based on on-chain execution, which fully meets the conditions for joint initiation and fair launch, and truly realizes the primary condition of DAO—protocol-level consensus.
Second, EGG DAO has the following characteristics:
- There is no class among EGG DAO members and it is fully democratized;
- For the governance of the EGG DAO, member votes are required to implement any changes;
- Voting statistics, automatic implementation of decision-making results, no need to trust any third party;
- Various services, support, and encryption ecology provided by EGG DAO are automatically processed in a decentralized manner;
- All activities of the EGG DAO are transparent and fully public.
EGG DAO is similar to other DAO autonomy, using EGG token as an economic model to generate positive incentives and ecological impetus for all members. At the same time, EGG token provides an excellent value target for various economic operations.
Decentralized, automated and transparent
The decentralization and transparency of the EGG DAO gives its members full ownership of the maintenance protocol. In addition, EGG DAO with the help of smart contracts eliminates all third-party transaction costs compared to traditional companies, EGG DAO only needs to “pay” fees that exist on the blockchain, thereby improving the liquidity of funds.
Community consensus driven
The decision-making power in the EGG DAO organization is given to each EGG holder, but it does not give them more rights or privileges, so everyone’s obligations and interests are equal. EGG holders have the right to make changes to further develop the EGG DAO ecosystem, which will make the EGG DAO a beneficial and truly democratized organization.
Potential return on investment
Owning governance tokens in the EGG DAO is a bit like holding equity in the early days of a startup – once the EGG DAO ecosystem is well developed, the EGG token will be very valuable. At the same time, EGG token is also the only certificate for members to obtain rewards such as dividends and liquidity. This helps to build a more stable EGG member ecology with a long-term investment mentality. All in all, this reward mechanism distinguishes EGG DDAO from tokens launched by other non-DAO projects, and also allows EGG DAO to have more room for profit.
In our investigation, EGG DAO adopted a very unique and innovative airdrop model. In the community airdrop reward program launched on April 4, a total of 100 million EGG tokens were airdropped to community users. This is an ecology that everyone can participate in without any barriers. EGG DAO is building the most comprehensive DAO organization based on the concept of autonomy and sharing. Tens of thousands of users participating in the airdrop will become potential members of the EGG DAO, and the market will heat up as a result.
Under the construction of DAO, we are very pleased to see that the EGGDAO community has a very solid consensus foundation. After the EGGDAO ecological token EGG was listed on PancakeSwap on April 15, the highest increase on the day reached 2000%, and the transaction volume exceeded 500 million. Driven by EGG, the number of token-holding addresses of the Meblox platform ecological token MEB has also exceeded 25,000, bringing a new development situation to the development of the entire platform.
DAO provides a secure, open, and transparent collaboration tool for crypto communities, non-profit organizations, and blockchain platforms, and EGG DAO, as one of the best, will become an excellent model for on-chain governance. We can almost foresee that more and more crypto guilds will seek to join the DAO organization, and EGG DAO will be the best choice to enter the metaverse and Web3.0.