Transformation Of DAOs

DAO is a decentralized autonomous organization that is managed using smart contracts. Let’s see how the DAO started and how its transformation took place.
A decentralized autonomous organization or DAO is a blockchain-based form of organization or company that often has its own token. Such organizations are not run by a director or managers, but by code.
The first DAO prototypes appeared back in 2013, but then the idea was just beginning to take shape and had almost nothing with its current form. Later, the concept of DAO was systematically invented by EOS founder Dan Larimer in 2015. Almost 9 years ago, the founder of the EOS blockchain platform, Dan Larimer, was the first to coin the term “decentralized autonomous corporation”. He defined the DAO as a structure whose charter is “determined by the source code”.
Vitalik Buterin in 2016 optimized the idea of ​​DAO and implemented it in the global and so far most successful project — the Ethereum ecosystem: smart contracts have learned to create autonomous systems and almost completely eliminated human manipulation of data. Vitalik Buterin expanded on this idea by suggesting that a codebase can determine the operations of an organization, its mission, and how it will be achieved.
Then the DAO era began — DApps, DeFi protocols, decentralized exchanges DEXes. Now such projects can be implemented on any blockchain, for example, Cardano, Pokadot, Solana.
DAO transformation
Analysts identify five of the most famous DAO platforms.
Ethereum
Ethereum became one of the first fully autonomous platforms. Although ethereum lacks complex mechanisms for platform management and voting, it is its smart contracts that formed the basis of DAO platforms.
MakerDAO
One of the first platforms to launch DAI stablecoins pegged to the dollar was MakerDAO. Maker is one of the largest DeFi lending protocols. Unlike USDT, ETH and some tokens can be used to generate tokens within the ecosystem.
The protocol was originally run by the Maker Foundation, but management later decided to step aside and put the protocol in the hands of the community.
Uniswap
The leading automatic market maker is the Uniswap platform, which combines the functions of a crypto exchange and a DeFi protocol, allowing users to become liquidity providers. The platform has strong support in the face of a huge community of users.
In addition, Uniswap is based on Ethereum, one of the most popular smart contract blockchain networks. However, the platform is not actively moving towards decentralization, since in order to make proposals for improving the protocol, it is necessary to keep at least 1% (10 million UNI) of the total emission of tokens. And this is a huge amount, exceeding $ 290 million.
Compound
Another of the largest lending protocols in DeFi, Compound, in addition to interest on loans secured by cryptocurrencies, credits COMP tokens to lenders to encourage the community to issue more crypto loans.
COMP tokens allow their holders to make decisions about changes to the Compound protocol.
DASH
The Dash protocol was one of the first to introduce the concept of masternodes (supernodes) into the industry. These nodes have extended powers compared to regular and full nodes, and at the same time they are the centralization point of the platform. Masternodes manage the protocol and can make decisions about changing it.
However, according to experts, only a few users can run a masternode, since this requires owning more than $230,000 worth of DASH cryptocurrency.

Joystream

The new DAO that is unparalleled in the world of video, DAO is the video platform Joystream, where you can watch videos and encourage other video creators. And here is a unique opportunity to make NFT from video.

The potential of the DAO and its transformation is just beginning to unfold — experts are sure that in five years, instead of company shares, tokens will be issued, and all processes will be optimized and completely go online. In any case, the DAO standard is our future.

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