First of all, I would like to explain that although literally speaking, DAO is an organizational form, but I personally think that its essence is more of a collaboration method, or a way of thinking.

I think the key to this question lies in "needs". From the product side, it is the product demand, and from the user side, it is why we need DAO.

To answer this question, we first need to figure out what a DAO does. I have seen several AMAs on DAO before BlockMania, and the discussion on DAO has been relatively clear, with theoretical analysis and historical introduction. Today I put aside these contents and focus on the practice and application of DAO.

From my observation, on a global scale, the current practical application of DAO is mainly reflected in two aspects:

The most successful case of fund management is MolochDAO, and the most successful case of organizational coordination is MetaCartel.

The two categories of money management and organization and coordination each contain two subcategories.

Fund management includes:

Organizational coordination includes:

These contents are the application scenarios of DAO that have worked well at this stage and have been proven to be feasible.

This is the application scenario mentioned in the question. But what we ultimately consider is whether we need it.

Because in the existing model, there is already a very complete management system for fund management and organizational coordination, why do we have to use DAO? So, there must be some aspect of the traditional model that we are unhappy with, and the DAO can just solve it.

If the content in this area is expanded, it may not be enough for 4 hours. I can only give a typical example to stop.

Let me give you an example of a donation.

We know that traditional donor organizations are prone to misuse of funds. There are two main reasons for this:

As a result, funds have been misappropriated and counterfeited.

So what if it works through DAO? Let's use Moloch to deduce it.

First of all, all financial information and donation dynamics of MolochDAO about the use of funds are open and transparent. Anyone can visit our website to check at any time, and you can even see the complete content of each proposal.

This is a good way to achieve social supervision.

But the core is that in MolochDAO, every donor can get a corresponding proportion of shares after donating to the DAO, which represents two equal proportions of rights and interests:

Therefore, through share, every donor can exercise two rights:

The second point is very critical, it can effectively prevent 51% attacks.

Once members within the DAO try to collude with several accomplices to initiate a bad donation, such as transferring all of the DAO's funds to the collaborating gang through a fake event.

Then even if the collusion gang managed to achieve a 51% turnout rate, any donor who is dissatisfied with this can withdraw his funds during the delay period after the vote is completed, so that even if the vote is passed, the collusion gang will get less money.

And this mechanism can well force the promoters of DAO to try their best to maintain the name of DAO, because once such an incident occurs, the DAO will exist in name only, which is a fatal blow to traditional donation institutions.

So in terms of donations, the advantages of DAO are very obvious.

In other aspects, such as organizational coordination, we have also seen the great potential of MetaCartel through DAO.

We are efficiently coordinating global community members through DAO, incubating, forming, and organizing a large number of projects, teams, and activities in just half a year, and some things are advancing at an astonishing speed.

For example, the Dragon Quest global virtual hackathon launched some time ago.

It took less than a week from the concept to the discussion of the details to the design and development of the official website. As far as I know, it is difficult to do it even in domestic companies where we work overtime like crazy.

The reason why it is so efficient is that one of the core points is that DAO has a natural advantage, which can filter out those "slackers".

But everyone who enters the DAO is willing to give and has a strong initiative, so everyone is very active and efficient. In addition, members of MetaCartel come from various time zones around the world, so basically there are people available 24 hours a day work.

To sum up the first question, from the observations at this stage, DAO can realize its potential in fund management and organizational coordination. But we need to find our own needs and find those cool points that can satisfy us.

02

In what kind of scenarios would it be better to use DAO? Are there some specific cases?

My experience and observation tell me that the practice of DAO is not limited in scenarios, the problem is:

First, do you really need DAO, do you really need it, or do you just think DAO is cool? This is the first question everyone needs to think clearly.

Second, we must find the minimum feasible unit. When you have not accumulated enough experience and member resources, using DAO to coordinate relatively complex scenarios will basically fail.

Therefore, we must practice DAO from a single behavior, such as the donation of MolochDAO, which is successful because it does one thing.

In other cases, like OrochiDAO, all it does is host events; MarketingDAO is only focused on promoting Ethereum. All single-target.

Therefore, the best practice of DAO is not heavily dependent on the scenario, but the entry point, which is a single behavior.

However, I have to say the following MetaCartel case.

This is a community that has done many wonders. At present, a large number of emerging projects of Ethereum are incubated by MetaCartel. If you want to study and learn the successful cases of DAO, it is strongly recommended that you study MetaCartel.

Let me briefly share my research. The main reasons for the success of MetaCartel are as follows:

Something worthwhile will definitely be followed.

In fact, there are many other reasons. The time relationship is out of order. We can discuss it again when we have the opportunity.

03

Can blockchain projects use DAO?

I don't think DAO and blockchain are necessarily bound.

Although it was born on the blockchain, most DAOs currently operate on the basis of blockchain technology, but the blockchain is not the boundary of DAO.

As I said at the beginning, DAO is not even an organizational form, but a way of collaboration or thinking.

Therefore, from the perspective of possibility, whether it is a blockchain project, the Internet or a traditional project, DAO can be used.

So whether a blockchain project can definitely use DAO depends mainly on the business characteristics of the blockchain project, the philosophy of the founder, and so on.

Let's look at the other side of this question again. Is there any blockchain project that cannot use DAO?

In theory, no. Because I mentioned the concept of the minimum feasible DAO above, the threshold for its practice is actually not high.

However, based on the fact that DAO is still in its early stages, it will lead to temporary limitations at this stage. Although I have no definite evidence that a certain or a certain type of blockchain project cannot use DAO, but I believe there is, because the world is so big, I am so small!

04

Can DAOs be used for typical, traditional corporate governance?

When answering the first question, we mentioned DAO as an attribute of organizational management.

So DAO can definitely be used for typical, traditional corporate governance. But DAO is not a replacement solution, at least not yet. There are many reasons for this, and I can mention a few in a moment.

Personally, I think that if you want to apply DAO to your company, there is a feasible solution: Minimum Viable DAO.

That is, you need to find the most feasible unit, for example: new media operation.

For example, operating an official account is a single act. It may include copywriting, typesetting, posting, community operations and other personnel. Then you can try to run this team through DAO in your company.

When you have experience, you can replicate it to other teams to practice. As for whether your company is completely covered by DAO or the two models complement each other, it depends on your company's actual business and how deep your internal strength is in DAO!

The practice of DAO must be a gradual process, which I call gradualism.

Briefly, incrementalism.

Gradualism has two aspects:

Two-dimensional progressive refers to the scope of your practice, which is the method I mentioned above. Minimal Viable -> Extended Scope

Three-dimensional progressive refers to the concentration of DAO, which simply means the degree of decentralization, or the degree of decentralization.

Only by adhering to the principle of gradualism can the success rate of your DAO practice be high.

Trying to achieve pure perfection right from the start is the equivalent of throwing yourself into a fire pit.

So, are there any companies based entirely on DAO at present? I can tell you with certainty: yes.

An American friend of mine started a company: Org.

They are a DAO, and they operate the company entirely through DAO, including fund management and organizational coordination.

This is a very interesting company. I will do an Org interview recently. Interested friends can pay attention to DAOSquare’s trends.

There is also a project incubated by MetaCartel: MetaFactory, which is also a similar case.

But it is a relatively big challenge to use DAO as the company structure from the bottom.

Although DAO is a very friendly organizational structure for entrepreneurs, because it can give everyone in the initial team a fair chance to become a core partner, so that the initial team can gain strong vitality.

But as a founder, are you willing to let go of your individualistic desires? For many people, this is a great psychological challenge.

In addition, at this stage DAO is still in the early stage of development, we do not have a mature and complete reference system, and we need to explore many things by ourselves, which is also a challenge.

So I have been emphasizing in DAOSquare that DAOSquare has a mission, which is to make itself successful. The significance of DAOSquare's success lies in:

So if you want to use DAO in a traditional company, there are two suggestions:

1. Start with the minimum viable DAO and expand gradually.

2. If you want to use DAO to start your company from the very beginning, then the best way is to find some relatively experienced people to chat with, such as come to me!

05

Are there currently any tools to help organizations or institutions use and develop the concept of DAO?

At the tool layer, there are already many very mature products.

I will briefly introduce these tools based on the two categories I first proposed, money management and organizational coordination.

Let me talk about money management first.

Compared with organizational coordination tools, fund management tools are relatively simple, nothing more than three points:

In the DAO field, the most common fund management tool is Moloch. Since it focuses on fund management, it is easy to understand and easy to use.

Ease of understanding and ease of use, especially for us non-technical folks, are key.

This is also a common problem in the web3 world, but this is not the topic of today's discussion, so I won't expand it.

Back to Moloch.

If you want to understand DAO, I suggest you start with Moloch, which can help you quickly establish a preliminary understanding of DAO.

I suggest you to practice like this:

Step 1: You can learn some introduction about Moloch first.

Step 2: You can go to DAOHaus and try to set up your own DAO. Only by practicing with your own hands can you truly understand the logic and joy of it.

Tell me about DAOHaus.

DAOHause is a DAO platform developed based on Moloch. It allows us to set up our own DAO without writing code and deploying servers. The key is free and an absolute benefit.

The guy from DAOHaus is looking for me to talk about making their products into a Chinese version, which will greatly reduce the entry barrier for our people.

Of course, Moloch is not the only one who can manage funds, and other organizational and coordination tools can also be competent.

For example: DAOStack's Alchemy, Aragon, Colony, etc.

Let's take a look at these organizational coordination tools.

Alchemy allows you to set up and manage your own DAO, including creating Ttoken, proposal voting, and fund management. Org relies heavily on this.

However, I am not very comfortable with its use logic, so I haven't studied it in depth, and I don't have much say.

Interested friends can go to their website to find out, maybe there will be a lot of gains.

Aragon is the most comprehensive and powerful organization and coordination tool. We can use it to complete a huge company operation, but the price of power is that the product is relatively complicated, which may cause confusion for novices.

In addition, Aragon is building a very complete ecology, including arbitration. Recently, they have just established the Aragon Court. All Aragon-based companies, organizations, or individuals can mediate disputes through the Aragon court. Aragon is achieving a very ambitious goal.

In addition, Aragon's UI is very beautiful. Simply put, Aragon is the best in terms of appearance.

Compared with the previous two, Colony has a relatively large difference in product logic.

Alchemy and Aragon are organization-based, while Colony is network-based.

In other words, the products of Alchemy and Aragon are relatively closed and bounded, while Colony is open and borderless. Of the three, I personally prefer Colony.

There are several reasons why I like Colony:

1. It's simple enough. Creating an organization in Colony is as simple as registering an app account, and the management is not complicated. It is easy to understand and operate.

2. It is an open form. This is especially important for DAO ecology. The nature of DAOs is open, even instant. A closed organizational form is not only detrimental to the growth of the organization itself, but also detrimental to the development of the entire DAO ecosystem.

However, Colony has just released a beta version, and it only supports some basic functions for the time being. Still need to continue to iterate and optimize, but I am personally very optimistic about Colony's future prospects.

Click to reviewClick to review) have expounded related points of view.

06

Do you also use DAO? What is the specific way?

That's for sure! I mentioned DAOSquare above, but many friends probably don’t know what DAOSquare is, so let me briefly talk about it first.

DAOSquare is a project I initiated, it is a media organization, but also a connector.

We not only introduce some DAOs, but also some of the most interesting and promising projects in the web3 world.

Here's how we implement it:

DAOSquare has been in trial operation since February this year, and we have been trying different methods to make DAO take advantage of the organization.

We also follow the principle of the minimum feasible DAO, and first start to practice from the translation part, which is a single action, and everything runs normally.

For other parts, such as the decision-making part, we were trying a governance model similar to traditional companies.

Now, DAOSquare as a whole is still in the experimental period. During the experimental period, we will try different methods in each part, and finally come up with the most effective solution.

The pilot period is very important because you can never have a perfect future plan on paper before you start implementing it. Everything needs to be verified and adjusted in practice, and finally come to a certain stage of planning.

Peter always said a word to me: Just do it! I translated it into Chinese for him: Don’t ink, just do it!

In addition, during the trial period of DAOSquare, our thinking has also undergone many changes.

There will be many new thinking in many aspects such as organizational structure, DAO governance model, business logic, and business exploration.

In the past few days, I am also summarizing these thoughts and preparing for a comprehensive upgrade of DAOSquare. Of course, the premise is that you need to be recognized and followed by your friends.

07

What advice do you have for those who want to build a DAO or implement the DAO concept?

A few personal suggestions, not necessarily right, let's discuss together.

1. First of all, think about whether you really need DAO.

I have been saying this question all the time, although I am promoting DAO haha, I really need to be cautious on DAO,

Whether you really need a DAO is a question of the soul.

Like some of the questions I mentioned above, for example, is DAO really the best solution for the problem you have?

If you want to create a company through DAO, are you willing to give up the kind of individualism that can greatly satisfy yourself?

These questions must be thought through clearly, just like today's topic, DAO also has a way.

2. Follow the principle of gradualism, start with the minimum feasible DAO, slowly accumulate experience, and gradually expand while improving capabilities.

3. Communicate more with people who are practicing DAO. Discussion is the best way to improve awareness.

4. Go to DAOSquare to read our articles more often. Here are the most complete and highest-quality DAO content in the Chinese-speaking world, including articles, podcasts, events, etc.

And the last point, that is just do it!

Whatever you think of, don't hesitate, just do it, don't feel that you are not ready, we will never be ready, and it is always more enjoyable to explore in practice than to be melancholy to the sky.

This is why MetaCartel has grown so fast.

So, don't be afraid of DAO's problems or challenges that give you headaches.

DAO is in the early stage, everything is hazy, but all the opportunities are hidden in the haze, whether it is traditional industries or the Internet, the birth of those giants is the same. Therefore, in the face of the current small challenges and let With all the crazy possibilities of the future, how do you choose?

Q1: How can DAO's decentralized autonomy emerge with real crowd wisdom instead of crowd fools? Good companies such as Alibaba and Huawei are all controlled by individuals with small shares.

Let me answer the first question first, how to realize the wisdom of the crowd instead of the fool of the crowd.

First of all, DAO has a natural threshold. From my experience, at least at this stage, the people who can participate in DAO are those who have a certain vision and passion for DAO itself

Then, in terms of personnel components, some bad components will be filtered out.

There are many reasons for this, such as knowledge reserves, etc., which is the premise.

Then the second point, the DAO mechanism can regulate the risk of the organization falling into a mob.

Many people understand that when it is decentralized and everyone can participate in decision-making, the organization must be chaotic. In fact, it is not the case. From my experience, whether it is a traditional organization or a DAO, people who are willing to participate in decision-making are still It is a minority, which is determined by human nature, not by mechanism. So DAO just gives everyone the opportunity to become a decision maker, which is the core.

As for whether people are willing to participate in decision-making, this is a human factor, and it will not change due to changes in organizational form or collaborative relationships. Instead, DAO can give opportunities to those who are capable but not endorsed, thereby enhancing the potential of the organization.

Q2: What kind of Dapp is better for traditional companies to use the concept of DAO to establish a project-based empowerment organization? Can it be combined with AI? Thank you, teacher.

This question needs to be tailored to specific needs, just like the two categories I mentioned, organizational management and fund management. It is necessary to choose a specific DAPP according to the actual needs of the company. My personal point of view is that it is not necessarily limited to one DAPP, you can find the best tools for each type of business. There are a lot of excellent tools abroad, but we don’t know many of them.

This is also what DAOSquare hopes to do, to introduce excellent products to more people.

Q3: How does a DAO organization motivate or mobilize the enthusiasm of individuals within the organization and partners outside the organization?

This problem involves both micro and macro levels. The micro refers to the incentives within the organization, and the macro refers to the incentives of the entire DAO network.

Typically, motivation within an organization relies on two components:

1. Equity incentives

2. Cash incentives

Cash incentives are immediate, while equity incentives are long-term.

DAO, especially in the early days, what you need are long-term people, those who agree with your philosophy and are willing to realize it with you, so as to bring DAO into a virtuous circle and room for growth.

So, my suggestion is to form and run your DAO through equity incentives.

So how to implement equity incentives? I believe that friends in the blockchain field are already familiar with it, so I won’t expand on it haha.

Let's talk about the macro level.

DAO and DAO, how DAO trades with other companies or other organizations are also two points:

1. Cash

2. Your DAO token

The first point is the short-term goal, and the second point is the key factor to make the DAO network or the entire ecology bigger.

Q4: Can crowdsourcing and flexible employment meet the needs of many organizations that want to use DAO?

First of all, it can be said with certainty that from the perspective of labor collaboration, flexible employment and crowdsourcing have basically met the needs.

But there is a key point, if the life you want is not just to accept a crowdsourcing or amateur outsourcing, if you have a higher life or ideal pursuit, crowdsourcing and flexible employment cannot satisfy you.

BlockMania is a blockchain consulting think tank, aiming to bring the deepest cognition and thinking of the blockchain industry to the industry and the public. Just like the blockchain, we believe that each idea has the possibility of becoming a node by connecting to other ideas, so we want to build a platform that connects ideas from points to lines, and from lines to a network.

BlockMania is a blockchain consulting think tank, aiming to bring the deepest cognition and thinking of the blockchain industry to the industry and the public. Just like the blockchain, we believe that each idea has the possibility of becoming a node by connecting to other ideas, so we want to build a platform that connects ideas from points to lines, and from lines to a network.