What are the pros and cons of knowing a DAO in five minutes
Registration, infrastructure, protocol expertise, and chain management, Delphi Digital, a new york-based Digital asset research firm, tells you what daos are and what are the pros and cons.
A decentralized autonomous organization (DAO) is an organization that operates autonomously without relying on bureaucratic management.It implements collective decisions and accomplishes specific demands through agreements to be trusted.
The DAO most people are familiar with is The DAO hacked in ethereum in 2016.Since then, the DAO's vulnerabilities have emerged, leading to a hard split in ethereum, and the word DAO has been shunned.Many blockchain projects have also erased the concept of decentralized autonomous organizations from the white paper because of this issue.Fortunately, the DAO presented in this report is not the previous DAO.
The development of daos has accelerated in recent years, and we can see how daos have a profound impact on how organizations manage.Daos have a huge impact on how communities and participants are organized.This report attempts to run several DAO organizations of different kinds.It is important to note that the daos mentioned in this diagram are all experimental products.
Advantage
1.Decentralized decision making - daos have no leader or management, so members can directly and quickly influence an important decision.
2.Community participation and win-win - holders at any level can submit proposals and Suggestions for improvement.
3.Efficiency and automation - most DAO rules and policies are set up right from the start.Once the rules are established, the DAO's operations no longer need to be managed.
4.Transparency - everything that happens in the organization is recorded on the blockchain and viewed by everyone.
Possible shortcomings and problems
- Manipulation - incentives for the DAO can lead to malicious or manipulative behavior that can be fatal to the DAO.
- Chaebol rule - because of the DAO rule, there is always a risk that the chaebol will rule the community.
3.Ignorant decision making - DAO members may be unaware of the technical issues they are voting on. - Legal risks - it is not clear how daos will be classified within the existing legal framework.