5 ms·

DAOs are a bit fluid, even evasive, in definition but there are plenty out there (e.g. VitaDAO) which essentially function as an alternative organizational stru

DAOs are a bit fluid, even evasive, in definition but there are plenty out there (e.g. VitaDAO) which essentially function as an alternative organizational structure to traditional corporations. To function outside the crypto space (or really legally at all), they have to at least create shell LLCs which are governed by DAO decisions. Very few DAOs seem to get that far and instead choose to operate in the greyzone. As the space matures, I think we'll start to see a few large corporations which use on-chain voting in place of shareholding meetings. Whether this will otherwise cause any meaningful differences in how companies operate remains to be seen.

magicjosh 5y ago
Thanks that's helpful context. So what you're saying is ultimately DAOs are about governance of traditional entities. So if there isn't a traditional entity at the top yet, it needs to be on the roadmap or the whole thing is a bunch of puffery. I've seen a bunch of DAO concepts that are fundamentally "hey let's make currencies and securities". It's like "uh, remember all the ICO stuff? that didn't work". Excited to see examples of DAOs that do connect to augment traditional governance structures.
- iskander 5y ago
  I think a few DAOs are so divorced from physical concerns that they can remain on the internet and direct resources there without needing a corporate shell. But, as soon as money flows into the real world, they will need to figure out how to create and interface with traditional entities, or...like you said, it's very ICO-like.
brightstep 5y ago
Why would a large corporation replace a shareholder meeting with a public on-chain vote? What is the incentive, what is the benefit to them?
- iskander 5y ago
  It's not just the voting mechanism, it's also the crowd-raised treasury and culture of dev-centric leadership and internet community governance. People seem to like pooling money in this way, even if it seems silly you probably can't stop them from wedding this model to LLCs and stepping more solidly into the legal framework of corporations.

magicjosh 5y ago

Thanks that's helpful context. So what you're saying is ultimately DAOs are about governance of traditional entities. So if there isn't a traditional entity at the top yet, it needs to be on the roadmap or the whole thing is a bunch of puffery. I've seen a bunch of DAO concepts that are fundamentally "hey let's make currencies and securities". It's like "uh, remember all the ICO stuff? that didn't work". Excited to see examples of DAOs that do connect to augment traditional governance structures.

iskander 5y ago
I think a few DAOs are so divorced from physical concerns that they can remain on the internet and direct resources there without needing a corporate shell. But, as soon as money flows into the real world, they will need to figure out how to create and interface with traditional entities, or...like you said, it's very ICO-like.

brightstep 5y ago

Why would a large corporation replace a shareholder meeting with a public on-chain vote? What is the incentive, what is the benefit to them?

iskander 5y ago
It's not just the voting mechanism, it's also the crowd-raised treasury and culture of dev-centric leadership and internet community governance. People seem to like pooling money in this way, even if it seems silly you probably can't stop them from wedding this model to LLCs and stepping more solidly into the legal framework of corporations.