But at the same time, they are now creating major problems that have a strong negative impact on our society. Such as large differences in wealth and the very negative social consequences that result from profit maximization. This makes the differences between the participants within such an organization even greater. We see the large differences in pay between employees and drivers of Uber, but also, for example, that the top 1.4% of musicians on Spotify collect 90% of the royalties . Where in the beginning companies provided structure in our society, this now seems to cause a divisiveness in various areas. This, combined with the rapidly increasing loneliness and ‘ the great resignation’ , has ensured that DAOs have become popular at a rapid pace.
Stop With Erasing the Message
DAOs address many shortcomings of current companies, such as the maximum focus on profit, the barriers to entry and the large difference in remuneration between shareholders, management and employees. DAOs are basically programmed Panama Phone Number organizations on the blockchain . Where Bitcoin makes (financial) intermediaries superfluous when sending and receiving money, DAO’s management makes it superfluous. There is therefore no hierarchy, but also no bureaucracy. . As a result, the whole works in a completely decentralized and democratic way.
With Erasing the Message
It provides an innovative, new way of organizing organizations on the web. “Corporations organized the Industrial age, DAO’s will organize the Internet Age”. Aaron Wright This way of working creates a solution for the ‘ principal-agent theory’ , where friction can arise between the principal (read: management) and the agent (read: employee). Because the agent has no interest in performing the task as the principal intended him. Consider, for example, a commercial hospital, where management prefers to see as many treatments as possible, but doctors prefer to take the time to properly help a patient. Smart contract with a decentralized autonomous organization (DAO) How do you encourage organizational members to manage and maintain the DAO? DAOs often use their own digital token (or coin).