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Best Decentralized Autonomous Organizations (DAOs) to Follow

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The advent of the industrial age introduced changes in the structure and economics of organizations. Beginning in Britain around 1760, it was characterized by machines like the steam engine replacing hand tools. The idea of organizational structure is ripe for the disruption it seems.

“The future of any corporation is as good as the value system of the leaders and followers in the organization”- N. R. Narayana Murthy

The DAO

So, A Decentralized Autonomous Organization (DAO) is an organization of individuals who are united by a common goal. The profit they make is for the corporate entity and they solve societal problems.

In recent times, we have seen great changes in the way organizations represent themselves. The million-dollar question on many lips is about the future of DAOs. Would they replace the traditional organization? What about the role of governments? The future of DAOs is still a long way off, it would seem.

In contrast to traditional corporations, DAOs have no formal leaders. They are community driven and community members are united by a common interest. One important attribute of decentralized autonomous organizations is that key decisions come to a vote on the blockchain. The only way to influence the outcome of a vote is to build consensus around an idea.

Best Decentralized Autonomous Organizations (DAOs) to Follow

Let’s look at some notable DAOs to follow.

Uniswap (UNI)

Uniswap-UNI

Uniswap is one of the most interesting projects to launch on the Ethereum blockchain. The project started in 2018 after the Creator Aiden Adams got a grant from the Ethereum foundation.

Uniswap is a decentralized exchange that enables anonymous users to invest and trade in tokens on its platform. The unique architecture dropped the concept of a limit order book. Market makers no longer need to specify the price when they provide liquidity. Instead, they supply the funds and Uniswap takes care of the rest.

Constant product market maker formula: X*Y = K

In contrast, on Coinbase, market makers supply liquidity at various price points. They choose to make markets at various price points where they are comfortable to transact. So collectively, all trade orders form the limit order book.

When markets move up or down, open trades may or may not get filled depending on the price specified. The price quoted is the mid-market price between the highest bid and the lowest ask.

However, on Uniswap there’s no need for market makers to specify which prices they are willing to buy or sell. Instead, the protocol pulls everyone’s liquidity together and makes the market based on an algorithm.

Maker DAO (MKR)

Maker DAO (MKR)

So, Maker DAO issues a stablecoin known as DAI which is pegged to $1. Crypto collateralized stablecoins maintain their peg by being backed by other crypto assets. Maker DAO is a stellar example of this.

Those who deposit collateral pay an annual stability fee. This percentage goes to holders of the MKR token. Let’s think of this as interest realized by giving a loan. this tablet if he is controlled by a vote of the holders of MKR token. This is critical to maintaining the peg at $1

Compound (COMP)

Compound is an autonomous interest rate protocol that allows users and applications to earn interest or borrow Ethereum assets. So, The process is governed by an algorithm. There are community-built interfaces where users can access compound protocol and its market.

It is made up of a liquidity pool such that instead of users lending assets directly to one another, they simply supply liquidity to a market and other users can borrow from that market. Interest rates are determined by an algorithm which is based on supply and demand. there is no predefined lock period. So, users can withdraw or repay anytime.

0x (ZRX)

0x is an autonomous crypto exchange that works through and open-source smart contract sale. The utility token is ZRX which is an ERC-20 token i.e it is based on the Ethereum blockchain.

The first versions of smart contracts to be implemented on the 0x platform deployed on the Ethereum mainnet. That was back in 2017. Today, there are 15 0x layers which enable erc20 token trade on the mainnet.

The idea behind 0x is that the world’s value is becoming tokenized and it seems to build the tools that allow value to flow freely. It is a protocol to trade currency, to trade stocks, commodities, and so on.

The different layers in 0x

 Synthetix Network Token (SNX)

Synthetix platform permits creation of on-chain assets that track the value of assets in the real world. Sometimes it is necessary to represent real world commodities such as gold, Fiat currencies like the Australian Dollar, the U.S. dollar as well as more complex assets such as equity indices.

Synthetic assets allow users to have the benefit of owning an asset without actually holding it. People hold synthetic assets to receive some benefits over and above the underlying asset. This could be to grant them access, for instance if a person wants to have exposure to gold without having to worry about custody. He can do so. The purpose of synthetics could also be for liquidity, where one wants to easily liquidate their assets and it will be difficult to do so with the underlying asset.

The first use case for since was in stablecoins. They needed the ability to hold the token that tracks the value of Fiat currency without necessarily holding that currency. So, it is more flexible to deal with as there is no need for custody.

Users are able to transfer value that is agreed upon and in a widely accepted nomination without the need to rely on third parties to hold collateral.

Big Green DAO

Founded by Kimbal Musk (brother to Elon Musk), Big green DAO is a web 3.0 Charity organization focusing on food Justice. The grant-making industry is surround by power structures and Big Green DAO is out to bring a fresh approach to phillantropy. They have a mission which involves disrupting the philanthropic hierarchies and streamline the models for philanthropy.

They seek to ensure members all have the same vote and votes are weight equally. Then they would give grant to growers and support garden and greenhouse programs. In the process, they would support schools, families and communities in growing their own food.

Conclusion

For over 400 years, companies have been a prominent part of modern society. Entire cities are define by the presence of conglomerates who contribute to the government by way of tax. These organizations also bring civilization and development with them.

Finally, Having said this, the organizational landscape is due for disruption. Companies have been part of the problems in society with the way some corporate entities sacrifice ethics for profit. The DAO addresses many of the issues caused by companies. They are more efficient and lay emphasis on community building.

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