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9 - Decentralized Autonomous Organizations and Organization Formation on Web3

from Part III - Applications and Use Cases of Web3

Published online by Cambridge University Press:  21 November 2024

Ken Huang ,
Youwei Yang ,
Fan Zhang ,
Xi Chen  and
Feng Zhu
Ken Huang
Affiliation:
DistributedApps.ai
Youwei Yang
Affiliation:
Bit Mining Limited
Fan Zhang
Affiliation:
Yale University, Connecticut
Xi Chen
Affiliation:
New York University
Feng Zhu
Affiliation:
Harvard Business School
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Summary

Chapter 9 offers a comprehensive exploration of decentralized autonomous organizations (DAOs) and their role in the formation of Web3 organizations. It begins by defining DAOs, tracing their history, and outlining the benefits they bring to the digital world. The chapter then delves into the various types of DAOs, including protocol DAOs such as MakerDAO and Lido, charity DAOs such as GitcoinDAO and Ukraine DAO, and investment DAOs, represented by The LAO and MetaCartel Ventures. The chapter also examines Art Collection, Social, Fans, Sports, Media, Tool, and multipurpose DAOs, with examples such as Aragon DAO and Coordinape DAO. However, it is not without noting the disadvantages of DAOs, such as slow decision-making, low active participation rates, legal and tax issues, centralization risk, and vulnerability to flash loan attacks. The future of DAOs is also a topic of discussion, with speculations on how they could be combined with artificial intelligence (AI), attract large institutional investments, or be endorsed by big brands. Furthermore, the chapter considers the possibility of DAOs functioning as virtual countries and their potential role in inclusive finance. The chapter provides a summary, followed by a series of thought-provoking questions for further reflection.

Type
Chapter
Information
Web3
Blockchain, the New Economy, and the Self-Sovereign Internet
 , pp. 260 - 288
Publisher: Cambridge University Press
Print publication year: 2024

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References

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