The next wave after DeFi will be DAO?
Editor's Note: This article comes fromBabbitt Information (ID: bitcoin8btc), Author: Screen, released with authorization.
Editor's Note: This article comes from
Babbitt Information (ID: bitcoin8btc)
Babbitt Information (ID: bitcoin8btc)
Recently, I saw such a MEME picture on multiple social platforms. If you are in the crypto circle, you must be familiar with DeFi. What is the DAO that is bigger than DeFi in the picture? DeFi is still hot, and a new wave is brewing ?
DAO is to gradually encode the management and operation rules (consensus) of the organization on the blockchain in the form of smart contracts, so that without third-party intervention, through intelligent management methods and token economic incentives, the organization It is an organizational form that realizes self-operation, self-governance, and self-evolution according to pre-set rules, and then realizes the organization's maximum effectiveness and value transfer.
The author participated in the practice of some DAO content creation communities 2 years ago. At that time, the community called DAO gathered a group of enthusiasts to collaborate with each other to translate blockchain and DAO-related articles and produce audio, video and other content. Then through manual workload statistics, the community pass is issued. Objectively speaking, neither D (decentralization) nor A (automation, autonomy), it is more like a small community experiment. Such an experiment will eventually face the torture of the choice between "breadism" and "idealism".
After the experiment, we are left with a thought: DAO is expected to become the fourth organizational form besides the country, the market, and the company, maximizing the efficiency and value transfer of the organization, and forming a new business transformation. So, where should be the first testing ground for such a change? Obviously, the content creation community is not the first choice. DAO wants to move from an idealized concept to reality, where will its breakthrough be, and what is the path?
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DeFi, the breakthrough of DAO landing?
In May last year, the Ethereum enthusiast community pointed out in an article discussing DAO: Today, when new forms of DAO emerge in an endless stream, discussing DAO will seem a bit overwhelming anyway, and it is difficult to be too conservative and irrelevant. find the right balance. Time has come to today, with the rise of DeFi, has this situation changed?
Among the DeFi projects, Maker is the first to implement DAO-based governance. MakerDAO uses MKR to mark the identities of members and define their governance authority over DAO. In this example of Maker, we can see two major functions of the DeFi governance token. 1. As a vote for governance, MKR holders The voting result determines the direction of Maker's action; 2. The main function of the joint action determined by the voting is to determine the risk-taking of the Maker, that is, the governance token can assist in the protection of the protocol. When there is a problem with the DeFi project, the token holder is actually ultimate stakeholder.
What do you think of this prediction? We can think along the lines of:
DAO needs to be built on a scenario where there is a possibility of landing, and the premise of DeFi landing is established;
The cost of building a DAO is very high, and building on the application scenarios that can create high value can ensure the sustainability of development;
The scenario where the DAO model is applied has an urgent need for establishing governance rules.
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He Baohui, founder of Token Thinking Lab, pointed out that the implementation of the public chain will be divided into several stages: the first step is the prologue of DeFi launching the public chain; the second step is the DeFi protocol moving towards DAO; the third step is the basic performance After reaching a certain level, the landing of Dapp is ushered in; the fourth step is the full landing of DAO.
Starting with the end in mind, what is the state of the public chain? We can make a guess: Decentralized applications are booming, and governance requirements around various application scenarios are derived from this. Different DAOs are based on decentralized applications. This means that the implementation of DAO is based on decentralized applications that can complete a closed loop and have sustainable development capabilities. So, what kind of application scenarios meet this condition and will be given priority to implement DAO? The answer may have begun to emerge, it is DeFi.
In fact, DeFi has indeed achieved value capture. The most obvious is that market makers can earn transaction fees by providing liquidity in DEX.
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What kind of scenario must be DAO, so that it costs a lot of money to go to DAO, and participating members are willing to pay to participate? "
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"The article shows how to create a DAO based on the 706 community (a community where young people discuss literature, history, philosophy and art). From a cost point of view, is there any other alternatives for the 706 mentioned in the article? In other words, obviously, compared to interest communities, DeFi can currently achieve value capture, which belongs to high-value scenarios and is a more feasible testing ground.
Hobby communities and NGOs can undoubtedly create spiritual civilization wealth and bring well-being to the society, but these high-value wealth are currently difficult to measure in the form of currency. We also look forward to creating a new value measurement paradigm through DAO. The book "Starfish and Spiders" pointed out a little insight that decentralized organizations will bring unexpected innovations, but the development and growth of these things may still require centralized operations. Perhaps in the budding stage of new things, we should not limit the development of DAO from the realistic perspective of cost. The emergence of new paradigms requires more tolerance.
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