The decentralized autonomous organization (DAO) is back – at least in the internal testing phase.
Ethdenver, the largest Ethereum hacker in North America, shows many Daos for activity management. From the winner of Matsushita to buy food in a mobile dining car near Denver’s historic Capitol Hill, Dao runs through the entire event.
Hackersson’s winning team did a Dao project: Coz. The project aims to achieve a more efficient way of material distribution than the current non-profit organizations. The bonus is a stable Dai equivalent to US $3000.
Earlier in February, when I interviewed some teams who participated in ethdenver this time, I found that today’s Dao is no longer the Dao of 2016 (in 2016, the The Dao smart contract was attacked by hackers, and the Ethereum community disagreed on whether to roll back the loss, which led to the bifurcation of Ethereum community into Ethereum (ETH) who agreed to roll back and Ethereum classic (etc) who did not agree to roll back.
Although Dao’s use cases are still limited, proponents have become more cautious this time and are paying close attention to the inherent challenges of decentralized collaboration. If the attention of ethdenver 2019 to Dao is an early indicator of the development of this field, the performance of Dao in the next 12 months will be more outstanding.
Just like the first Dao, many Dao are still set up to provide financial support for open source development on Ethereum network.
Molochdao, which will be launched in 2019, is a very simple agreement, which allows a limited number of users to form a group to jointly raise funds to support the development of Ethereum 2.0. The project went online in March 2019, streamlining its vision and getting funding from industry celebrities such as vitalik buterin, the co-founder of Ethereum, and Joe Lubin, CEO of consensys.
After that, metacartel, which launched in December 2019, adopted a similar idea and showed its products on ethdenver.
As James Waugh, founder of axis labs and a member of metacartel, said in an interview with coindesk, metacartel is an experiment on social signals in the Ethereum community, compared with Moloch, who focuses on Ethereum 2.0 (the next iteration of Ethereum blockchain, which will be based on the consensus algorithm of proof of equity).
Metacartel focuses on Ethereum’s values and rewards teams with similar values. Wo said that although the metacartel team had little money, it was valuable to vote on the funding plan, especially considering the size of the Ethereum community as a whole.
“The social signals we give out when we give out grants are very important. If there is no such social signal, it’s just $200000 in the extra wallet, which is not so interesting. What’s really interesting is the social signal of signing more than 200000 dollars in your wallet. “
In addition, wo also pointed out that it has nothing to do with the members of the group, but with the values upheld and fulfilled by the whole group.
“The purpose of this experiment is not to break anything, it should have been small-scale and strategic,” he said. The value of signals is 10 times the value of capital. “
Not all crowdsourcing apps are Dao, says Felipe Duarte, activity manager at daostack.
Duarte is a community organizer from Brazil with 15 years of experience. Dao is rapidly developing into a social organization that can create social value, he said.
For Duarte, Dao is similar to a biological phenomenon. Take the bacteria floating in the water, for example, which lack direction and purpose when they are free, he said. However, the right restrictions will stimulate action.
“If you go to the wall with a container, it’s the best time for bacteria to move in predictable patterns,” Duarte said. These bacteria form a flow of motion, and you can put a nanoturbine into it and use the motion of the bacteria to generate energy
Daostack set up an activity team daofest and held dozens of Dao community meetings based on the genesis Dao agreement. Duarte said that the genesis Dao can accommodate up to 350 people to work and find problems at the same time while complying with the guidelines of the group.
Luke Weber, co-founder of Caribbean blockchain network, said he had used the technology to organize social activities such as beach cleaning, bringing together people who didn’t know each other but were willing to meet the needs of the community.
“I think the best way to describe daofest is to try to find the best point to ensure that there is a definite goal and enough space for self-expression,” Duarte said
Lou Kerner, co-founder and CEO of venture capital firm cryptooracle, said Dao eliminates the need for intermediaries and helps communities solve collective problems.
When asked if genesis and daostack were overvalued, Kenner cited Amara’s law.
“People always overestimate the short-term benefits of new technologies and underestimate their long-term effects,” he said. This is the future
The Dao of. People were very excited at first, and then they were disillusioned. The same is true of the Internet in the past
While projects such as buffidao, coz, metacartel and daostack on ethdenver are trying to break people’s stereotype of Dao, one project directly faces this problem: Lao (for profit limited liability autonomous organization) initiated by openlaw.
Openlaw is a project supported by consensys and debuts in ethberlin 2019. The project announced on ethdenver that it plans to set up a Dao venture capital fund (similar to a limited liability company) to raise $2.5 million.
Aaron Wright, CEO of openlaw, said in a telephone interview with coindesk that openlaw is trying to solve the legal problems caused by the Dao incident.
Even before the Ethereum community forked over the “the Dao” incident, the legitimacy of putting investors’ funds into smart contracts was questioned. Mr Wright said openlaw took these concerns seriously, audited the code and sought legal advice from a number of external companies.
“What we can do is put everything into a legally binding agreement,” Wright said. We not only solved the initial security problems of Dao, but also solved the related legal problems. “
Wright said openlaw will continue to accelerate development driven by consumer demand.
However, the benefits of democratic decision-making for VC funds have yet to be discovered. Preston Byrne, a cryptocurrency lawyer, told coindesk at the Lao press conference in Berlin that the material benefits of such a financial structure are questionable.
“Lao is not imitating a limited liability company, it’s a limited liability company in itself,” Mr Bowen said. I don’t think that as a kind of venture capital tool, this kind of financial structure is more attractive or superior to the existing tools. “
The Dao projects shown on ethdenver are obviously in the stage of code audit, and buffidao is an example. Ethdenver’s Dao is not well prepared, and it has encountered difficulties in pairing its wallet with hackersson’s voting system. Some people say they are not interested in Dao.
At the end of the event, John Paller, founder of ethdenver, told coindesk that this year’s event was just a trial run, and next year’s event will run on these Daos.
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