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My Expectations of DAO on Internet Computer

Author:huadiansc

Expectations dao

DAO is a new way of organizing people. Traditionally, corporate structure has been the most effective free market method to accumulate talents to achieve goals. This kind of labor is usually convinced and controlled through wages. The DAO seeks a similar goal — creating value — but relies on a decentralized framework in which workers, users, and other stakeholders have real ownership of the entity.

Various types of DAO have emerged to serve different use cases. As interest in the field increased, DAO began to diversify and try to explore possible boundaries. There are DAOs for investment, DAOs for building new products, DAOs for social, and many iterations between and beyond.

These entities manage meaningful assets. Those who are skeptical of the encryption field, especially the DAO, may want to reconsider their position. These organizations have real influence and real capital. There are tens of billions of dollars under management in top DAOs, some of which, such as Compound, have nearly one billion dollars in funds themselves.

When it comes to DAO infrastructure, we are too early. DAO has many of the same requirements as the company, but given its size, liquidity, and technology stack, it must often deal with greater complexity. This requires the emergence of tools for organization, communication, collaboration, payment, etc. DAO has a few providers that can choose from these categories, but in general, the choices are limited. We should expect that many new entrants will enter this field in the next few years.

In summary, considering the deficiencies of the existing DAO organization, I have the following expectations for ICP, a promising blockchain project：

  1. ICP will create a world of DAO other than DEFI by building a completely different architecture from Ethereum.

One of the current restrictions on the types of DeFi products sponsored by DAO on Ethereum is that Ethereum is actually limited to mathematical logic. Due to the design of the network, it is impossible to provide more complex data to the end user. Generally speaking, these contracts are performing mathematical problems, so they are effective in trading, lending, custody, and other basic financial foundations. Over time, we have seen more advanced applications of these basic financial components, but they are still very limited to mathematical logic. Today, apart from mastering these basic financial operations, no DAO can do more. Therefore, I hope that ICP will create a world of DAO other than DEFI by building a completely different architecture from Ethereum.

  1. Now that the members of the DAO organization on Ethereum are scattered and prone to security accidents, I hope that the members of the DAO organization on the ICP can establish a closer cooperative relationship and ensure that the DAO organization is safe, stable and efficient with a stronger appeal.

DAO has obvious vulnerabilities that have not been fully resolved. The first DAO was hacked, and a bad actor tried to steal millions of dollars from Ethereum. Although today’s DAOs are more secure, they are also risky. Contributors often join anonymously, which means that reputation capital is not entirely online. In addition, if there is not enough protection, some DAOs are still vulnerable to exploitation.