DAY OF THE DAO – DECENTRALISED AUTONOMOUS ORGANISATIONS OFFER TRANSFORMATIONAL POTENTIAL
In an ever-changing technological innovation landscape, one phenomenon stands-out consistently – decentralised autonomous organisations (DAOs).
This is owing to their potential to revolutionise the way we organise and interact. As distributed ledger tech continues to gain traction worldwide, DAOs have emerged as powerful tools which promise to democratise access to financial services and more.
DAOs are essentially groundbreaking entities, governed by smart contracts that execute key decisions without any centralised authority. Their growing influence in contemporary business is undeniable, as they challenge traditional organisational structures and operational norms.
The rise of DAOs can be attributed to several factors, including increasing distrust of centralised institutions, demand for greater transparency and accountability, and a proliferation of blockchain technology.
With some $51bn now locked-up in decentralised finance (DeFi) protocols (as at the beginning of 2023), the significance of DAOs as creators and anchors of blockchain protocols within production communities cannot be overstated.
Approximately 11,000 DAOs are now operational and being used by hundreds of thousands of people globally. It is clear DAOs are more than a passing trend. They have become a transformative force shaping the future of modern organisations.
Oct-Dec 2024 Issue
Henley Business School