The metaverse unfolds rapidly. It is about that universe of virtual environments in which multiple projects are built and which is seen as the future of human coexistence. But as this digital world advances, who rules it, especially if it thrives in a decentralized way? The answer lies in decentralized autonomous organizations, better known by their acronym DAO.
To reveal details about this revolutionary way of governing and running organizations, a panel spoke on “why DAO is important”, in a talk that, this Thursday, December 16, was part of the sixth edition of the virtual event European Blockchain Convention.
Moderated by Alfonso de la Rocha, a research engineer at Protocol Labs, the conversation was attended by Paul Claudius, co-founder of the DIA (Decentralized Information Asset) project; Nirbhik Jangid, founder of the decentralized ecosystem The Dapp List; and Max Infeld, a member of the play to earn Alien Worlds game community.
In itself, all the panelists belong to a virtual environment governed and organized according to the designs of their community. Each member of this environment has power and voting rights by owning a governance token, so based on that, we can understand DAOs as a structure supported by a chain of blocks and with a native token whose objective is to organize human activity.
In other words, DAOs are decentralized social organizations to rule in the metaverse. without the need for a centralized decision maker. A radical change of concept when compared with the government structures that come from the traditional world.
The firmness of a DAO is a smart contract where the organization’s rules are stored. No one can edit these rules without the community noticing, because they are based on blockchains that are transparent.
Paul Claudius recounted how the community of his DIA project grows, which he described as a “Wikipedia of financial data from traditional and decentralized markets.” It is an open source platform that encourages users to obtain and validate data.
We needed data sources ourselves, while developing decentralized financial products and applications. In this process, we could not easily find truly transparent data sources. That’s when we started harnessing the power of the crowd to get data directly from public sources like exchanges and APIs. We soon realized that this approach, combined with an incentive scheme based on our token, has the power to solve challenges regarding trust and scalability.
Paul Claudius, co-founder of the DIA project.
From his experience, Claudius recounted how the DIA community has organized around a common goal. They work because they believe in the project, they feel it is their own and they contribute so that everything turns out as well as possible. “In essence it is very important and valuable how people manage and coordinate to achieve that the success of the project, while at the same time, everyone reviews and validates or not the data that everyone contributes,” he added.
As a demonstration that DAOs are adaptable to any project, Nirbhik Jangid spoke about how they have done it on The Dapp List, which is a decentralized multi-chain ecosystem focused on eliminating cryptocurrency scams in the industry. It is a decentralized platform where users can go to confirm the credibility of a certain project before investing in it.
So in The Dapp List the community governs the process of inclusion and exclusion of a new project on the platform. As a result, the process ensures that only initiatives validated by usersIn other words, the most credible will be those included in the kind of white list, as stated by Nirbhik Jangid.
The community governs the process of listing or removing projects. Divided into hunters and voters, the users themselves are the ones who act as a system of checks and balances to eliminate possible scams.
Nirbhik Jangid, founder of the decentralized ecosystem The Dapp List.
DAOs: a game changer in the rules of organizations
For Paul Claudius the most important thing that DAOs have is that through governance tokens users become owners of a portion of the projects. “They are partners who contribute ideas and vote for decisions and that is why they prefer to use them instead of traditional services.”
Claudius believes that, over time, there will be more and more DAO-based projects and therefore more people joining them. For that reason consider that this governance model will extendSo there will be no going back, “although at the moment it is in a fairly experimental stage,” he said.
Max Infeld was also convinced that the model presented by the DAOs will consolidate over time. Above all, because already it is a great reality that hundreds of players are experiencing with projects play to earn like Alien Worlds which already has more than 200,000 active users.
Infield pointed out that the metaverse does not grant access to all humans, but makes a kind of selection and only opens the door to those who can free themselves from beliefs implanted by traditional concepts.
This [el metaverso] it is not something that is immediately available to everyone. We found out when we went to introduce ourselves to people from the real world. We went to the stores and talked to the owners about the concept of our DAO, but they asked ‘how do we give our virtual consumers a product or service that doesn’t make sense to them?’ So in my opinion, a DAO is the vehicle that we will use to connect with the future, but there are still many people attached to the foundation of earthly traditions who are not ready for evolution.
Max Infeld, member of the Alien Worlds game community.
However, the panellists agreed on the point that DAOs are not always perfect formulas that suit all communities or that they are used in an honest way by all the actors of a certain ecosystem. They alerted those interested in this type of governance to be aware that there may be dishonest collaborators with the interest of attacking certain projects.
There are risks that in some cases there will be acquisitions of people or groups of them who want to buy the governance tokens of a certain project with the idea of having greater influence on the voting systems. Some people may buy all or most of the tokens of a project and then exert massive pressure on its price or influence the votes to support a certain idea including their friends and family to execute it. So there are all sorts of terrible things that can happen that you have to think about in order to build more secure governance systems.
Nirbhik Jangid, founder of the decentralized ecosystem The Dapp List.
Either way, more and more communities are finding in DAOs an effective mechanism to invest. We have reported several cases in CriptoNoticias, such as, for example, that of groups that have been formed in order to buy non-fungible tokens (NFT) of high value or the organization that has emerged with the idea of buying an NBA team and converting it DAO.