DAOs are so abstract, most people don’t even want to try getting to know them - that’s the reason this article was written.
Let’s not start with regular terminology and all that boring stuff - we’ll dig deeper.
What problem are we trying to solve?
The principal-agent dilemma has been around for years. Principal (the person, who orders the work) has control over the agent (the person, who does the work). However, the agent having more sources, provided to him by the principal has more information, that he could either use in the interest of principal’s organization, or for his own needs.
That leaves us with the problem of checking the agent’s work - DAO solves it.
In simple words, DAO is a program, made to automatize organisation’s work, while still letting the community change the development direction.
Nah, still not that simple.
Imagine your company has a director - you are the director. Then, you have managers, who have workers, they manage by their own. A worker gives a report of his work to the manager, after that the manager examines his work and gives just a part of the report, he found useful, to you. That’s why you don’t have full information - only the part, that the manager chose, depending on his experience or maybe even feelings.
DAO, on the other hand, uses strict smart-contracts, to not only give equal feedback on all the workers, but even replace the workers for higher efficiency and less manipulations. The information, DAO provides you with, is less biased and much more brief, still giving all the details, needed for analysis.
Will machines overtake us soon?
No, they won’t - the second huge andvantage of DAO is it’s flexibility. DAO is still dependant on human - it’s just a program.
To manage DAO people usually create a special group, of the DAO token holders, such as EXP on NFT Otters’ website, that you can gain by being an active community member. Through voting they approve or disapprove changes for the DAO, improving the system’s sustainability and efficiency.
Having such a sandbox let’s directors and the so-called principals build a hierarchy without any hierarchy at all. No people means no conflicts and close to zero probability of fails, so the company can focus on it’s ideas, instead of focusing on their realization.
We believe in DAO and are really looking forward to launching it on our NFT Otters platform - stay tuned!