Have you ever thought about sending your boss to hell? If so, know that you are in good company. They are not called "great resignations" by chance, on the other hand: the YOLO economy it pushes many people to reject the oppressive world of work and to review their work-life balance.
And if there were no more bosses, or superiors? What if there were "automatic" companies that have no manager, or rather, that manage themselves in an intelligent way?
There will be. What's more: there are, and they are called DAO.
DAO: Decentralized Autonomous Organizations
What are DAOs? In short (if you have time instead read here): they are decentralized and autonomous organizations financed with mechanisms similar to crowdfuning, and based on "smart" contracts. They allow people to work together in an organized way within a predetermined system of actions. A bit like a simulator that proceeds by itself with preset parameters, with the difference that it is not a simulation.
Does that sound too cumbersome? It is not. Various bosses and managers, however, are superfluous. Each employee will know what to do at any time: no inefficiency caused by management errors, no risk of bullying, discrimination, sexism, nepotism. Total transparency.
DAOs could forever change the way we work. Bum. No, jokes aside: can they work?
The underlying infrastructure of a DAO is essentially a chain of smart contracts linked and stored on the blockchain. And the blockchain, very quickly, is a distributed database. All data is saved on each person's computer and can be viewed at any time. All transactions can be traced back to a specific digital key. The data that has been saved cannot be deleted, ensuring maximum transparency.
Smart contracts allow automatic execution of predefined program sequences. When a digitally verifiable event occurs, a specific procedure is activated: in theory any process imaginable in companies can be managed in this way. What do i mean? For example, providing a precise production bonus in the presence of results, or greater commitment: rewarding merit with precision.
Storing smart contracts on the blockchain also ensures that automated rules are difficult to tamper with and published transparently. Each participant is always aware of what is happening and why it is happening. So, in other words, the opposite of today's businesses.
Farewell to "bosses" companies
DAOs send badly managed companies into the attic, and do not require relationships of "faith" or blind trust among participants. There is a "distributed", neutral and intelligent arbiter, and everyone can see how profits (as well as expenses) are distributed in real time.
And it's a revolution: because, like it or not, people often don't respect the rules or the promises. There are a lot of people who profit on the trust of others, serve their interests and fall short of their commitments: lawsuits? Warm panels, which often do not compensate for lost work or damage suffered.
The DAOs do not. DAOs are transparent.
How is a DAO born? Essentially in two stages.
Phase One: creation.
As is done for traditional companies there is a "deed of incorporation". During this procedure, a code is stored on the blockchain that establishes the fundamentals of the organization, such as the rights of the participants, the prices, the mission, the actions. A minimum amount of capital to be raised to leave is then defined, and a time limit within which it must be raised.
If the creation goal is not met during the creation phase, the DAO will not be created, and investors who have already sent money will get their funds back. This ensures that only vital and interesting DAOs move forward.
Phase Two: raising capital.
After creation, the capital raising process begins. Investors can buy shares in the form of tokens, which are usually bought with bitcoin or other cryptocurrencies. These shares (share tokens) are freely transferable and give investors the right to vote. Don't like that DAO anymore? Sell the shares and invest in a new project.
The end of the leaders
As mentioned, a DAO uses smart contracts to manage its financial assets. Token holders have the ability to propose investment ideas and thus directly influence capital allocation decisions. Each token holder has the opportunity to make a proposal, which is then voted on by the whole community. The majority voting requirements for decisions are established in advance (in the famous code that is implemented in the articles of association) and may differ from one DAO to another.
When a proposal is accepted, it is enacted by means of a smart contract, making it impossible for anyone to tamper with. In summary, DAOs provide companies with democratic processes in place of the hierarchy and dictatorships that characterize so-called "strong leaders".
Is the world ready for DAOs?
If you want my opinion, that's a no to me. Most states, for one thing, haven't even found a legal location at the DAOs. They don't know how to look at them! Companies? Cooperatives? Can they be sued for damages or disputes? Whose fault is it, in that case?
DAOs have no leaders, and there can be thousands of investors. Who is responsible? The guy who has the most shares? Politics will have to find answers to these questions before giving the green light to this type of "autonomous and automatic" companies.
The truth is, our society is probably not made for DAOs yet. Perhaps dictators are still loved too much, and everyone loves strong leaders who tell others what to do.
Do we think we live in a democracy? Obviously we have no idea, in a de facto "capitalist" world (in the West as well as in the East) of what a true democracy is. A DAO has flaws to fix, as you see, and it definitely won't fix every human problem.