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A Brief Introduction of DAOs and Their Importance
federico1.substack.com

A Brief Introduction of DAOs and Their Importance

Federico Daffina Minicucci
Sep 1, 2021
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Share this post
A Brief Introduction of DAOs and Their Importance
federico1.substack.com

What Are DAOs?  

DAOs are similar to traditional organizations — communities of people working together to achieve a common goal. The key difference is that DAOs allow us to create agreements (or frameworks for agreements) written in code rather than in words. By replacing paper/legal contracts with smart contracts verifiable by blockchain consensus, trust between participants no longer becomes a prerequisite for contracts to execute.

A DAO offers its members ownership of its internal capital (e.g. a treasury) through a token which often holds governance rights, allowing token holders to propose changes to the code of a project and vote on proposals. These include but are not limited to: smart contract upgrades, launching new products and treasury allocations. 

Users and contributors are the investors and owners, prioritizing member ownership and maximizing stakeholder value. 

Why Are DAOs Important?

My passion for start-ups and innovation has led me to leave Italy at a young age because the country is dominated by bureaucracy, a lack of meritocracy, and a legal system that makes it extremely hard to start a company — a huge barrier for local entrepreneurs. 

DAOs do not only remove many of these frictions by lowering external transaction costs, they also open up endless possibilities in terms of the different forms an organization could take, from micro communities the size of a 3-person WhatsApp group, to mega organizations constituted by thousands, if not millions, of people.

This is exciting because we haven’t seen much innovation in the way corporations work since they first emerged. Cooperatives — the structures which most resemble DAOs — have existed for a long time but they have never been very popular due to their complicated and challenging structure. DAOs make it easier to bring people together across jurisdictions: the Internet provides almost instant communication and low barriers to entry on a global scale and public blockchains add a layer of trust, value and transparency. 

Just like cooperatives are driven by values, not just profit, DAOs are driven by their communities and the beliefs propagated by their early members.

If you’re interested in learning more about DAO tools which have emerged to tackle different aspects of DAO management and ensure well-functioning communities, check out my post for Forefront:

Twitter avatar for @fededaffinaFederico @fededaffina
I'm extremely proud to share my 1st post for @forefront__ published on @viamirror, "The Importance of DAO Tooling for Social Cohesion", which covers: ⚙️ The DAO tooling landscape 🚨 Current challenges to address 🔮 The future of DAO tooling
ff.mirror.xyz/5DKTQ81NR3u_Cy…The Importance of DAO Tooling for Social Cohesion — MirrorThis is a guest post featuring Federico Daffina Minicucci, student at NYU Stern School of Business studying Computer Science and Finance.ff.mirror.xyz

September 1st 2021

17 Retweets93 Likes

Some useful resources:

  • Adam Levi | Reputation vs Tokens

  • Andre Cronje | Decentralized payroll management for DAOs

  • Andy Bromberg | Token Project & Token Sale Advice, Community, Adaptability, Bet On People

  • Bankless | Virtual DAO Summit

  • BlockScience | Exploring DAO2DAO Collaboration Mechanisms

  • Calvin Liu | Compound Autonomous Proposals

  • Chase Chapman | On The Other Side | 09. Julia Rosenberg: Human-centric DAO primitives, accessibility, and lizards 

  • Chris Burniske | Protocols As Minimally Extractive Coordinators

  • Coopahtroopa | DAO Landscape

  • Coopahtroopa | The Life of a Protocol Politician

  • Fred Ersham | Governance Minimization

  • Jesse Walden | Progressive Decentralization: A Playbook for Building Crypto Applications

  • Jesse Walden | The Ownership Economy

  • Kei Kreutler | Cooperatives, gaming guilds, and the networks to come

  • Kevin Nielsen | What is a DAO? 

  • Kinjal Shah | DAOs & Creators: Resources to Get Started Today

  • Linda Xie | A Beginner's Guide to DAOs

  • Packy McCormick | The DAO of DAOs

  • Pat Rawson | Ownership in Cryptonetworks

  • Peter ‘pet3rpan’ | How to grow decentralized communities

  • Tina He | The New Frontier of Belonging

  • Unstoppable Domains | The DAO Ecosystem- Organizations for the Internet Age

  • Vitalik Buterin | DAOs, DACs, DAs and More

  • Vitalik Buterin | Moving beyond coin voting governance

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A Brief Introduction of DAOs and Their Importance
federico1.substack.com
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