DAO: The Evolution of Organization

October 2022 - Cointelegraph Research

Public Access
Keywords :
DAO, DAOs, decentralized autonomous organization, blockchain, cryptocurrency, defi, investing,

The DAO Phenomenon and Why It’s Important?

The blockchain industry is still maturing, and every day, new applications of the technology are being created. Over the past few years, decentralized autonomous organizations, or DAOs, have captured the imagination of the blockchain space. DAOs are disrupting investment, corporations, social clubs, and even political parties. But what exactly are DAOs, and why should the average crypto investor care?

DAOs can be a more efficient form of organization?

DAOs are the frontier of coordination. Even though we are individuals, we work together in order to survive. Decisions for how to deploy resources such as capital and labor can be made collectively in a transparent way with the blockchain technology. Members of DAOs can propose ideas and vote on how to use community savings. This report provides a glimpse of how our society can function in the future without top-down structures. DAOs are a powerful way to make resource allocation more efficient, and there are many examples of DAOs that have already fostered a higher standard of living for its members. If you want to know how DAOs are shaping democracy, corporations, this report is a must-read.

Knowing what to look for can help future investments

DAOs are not immune to global economic conditions and have reacted similarly to traditional markets from 2021 through Q3 of 2022. Some DAOs have produced a better return on investment (ROI) than Bitcoin (BTC). Not all DAOs are highly correlated with major cryptocurrencies. For example, Curve DAO (CRV) can improve a Bitcoin portfolio's risk-adjusted return since their daily price movements do not move together often. This means there may be investment opportunities for those who know what to look for, and this report can help provide a starting point.