GETTING A GRIP ON DAOS – WHEN ONE VOTE CAN CHANGE EVERYTHING
Decentralised autonomous organisations (DAOs) are automated, self-regulating organisations, whose operations are encoded in smart contracts which allow key decisions to be made without a centralised authority. This matters because, in the annals of contemporary business, DAOs are proving to be a ground-breaking phenomenon which is reshaping the landscape of organisational structure and operations.
With an already staggering market capitalisation of $23bn, it comes as little surprise that DAOs are igniting debate, sparking innovation and challenging conventional governance norms as analysts assess their future market potential.
The DAO model is not a speculative concept confined to the back rooms of blockchain enthusiasts. Major companies like L’Oreal NYX are creating their own DAOs, and even governments such as Japan are currently testing the waters with this approach. Furthermore, DAOs have become accepted by legislative frameworks in the US, Switzerland, the Cayman Islands and beyond, suggesting long-term staying power, as well as the potential to disrupt dominant business models and rewrite the rules of organisational governance.
The crucial task of crafting the DAO white paper
Within the DAO, each member has a distinct and designated duty. In the pursuit of building a solid base for long-term achievement, the founders behind the organisation are entrusted with the crucial task of crafting a white paper. This document serves as a comprehensive guide for all the DAO’s operations, meticulously detailing the intricate technical and operational aspects of the organisation.
Oct-Dec 2023 Issue
Henley Business School