DAOS: Leading online crypto clubs could be the future of companies

The new crypto madness is a community in action. Decentralized autonomous organizations (DAOS) are online groups with a purpose-sometimes socially, often financially. Members join in by buying tokens with which they coordinate. Smart contracts make decisions easier. Everything is recorded. Decentralization means that nobody is in charge.

daos were developed to automate trust. Many act as investment groups and bundle funds to buy assets. The risk capital company Andreessen Horowitz, which has invested in the sector, continues. It presents Daos as a structure that will one day replace companies. Instead of the management makes decisions and pays wages or stocks, the stakeholders will take part in every action - and be rewarded for it.

So far, these collectives have been used to buy land in Wyoming, among other things, and to make a failed offer for a copy of the US constitution. This is quick work. Uniswapda's largest DAO with more than 300,000 Governance tokens owners is a little more than a year old.

The financing is volatile. The DEEPDAO data group says that Daos have $ 7.7 billion in reserve in reserve last November compared to $ 13 billion. The decline follows the crash of cryptocurrency prices, not the dwindling interest of the users. More than 1.8 million people are owners of governance token, compared to 1.6 million end of last year.

but transferring every decision to the group has its dark side. Like all cooperatives, they may only act slowly. The members could be overwhelmed and unsubscribe from the vote - which would effectively restore hierarchies. Some members can have more influence by owning more tokens. Participation could fall back to a few members who are able to use Daos for their own special interests.

Governance also remains in the works. If something goes wrong, a DAO can simply dissolve. The efforts to insert them into the real world are imperfect. In most regions, they are not considered legal entities. The risk remains that supervisory authorities consider Token as securities. Trust must be deserved.