So, what exactly is a DAO?
A new type of community-directed company enabled by blockchain.
A COMMUNITY THAT MAKES DECISIONS DEMOCRATICALLY
In a traditional company, investors elect members of a Board, and that board then goes on to govern the corporation, hire managers, and decide on the direction of the company. It's all done behind closed doors, and customers (aka 'users') are powerless.
Enter DAOs - Decentralized Autonomous Organizations
DAOs are an organization represented by rules encoded as a transparent computer program. DAOs are controlled by the members of the company (token holders), and are not influenced by a central authority (such as a board).
This means that a DAO exists with more input from its member base, and less top-down control from special-interest groups, investors, and managers.
For centuries now, companies have been ultimately managed by executives and a Board of Directors that are intended to act in the best interest of the shareholders/investors.
What is an investors' primary objective? To make more money. This incentivized structure has led to companies becoming super focused on profits, often cutting costs or impacting product quality to improve the bottom line.
Unless you are one of the mega-rich, you do not have a voice as a shareholder.
Investors' and customers' goals are often in conflict. Investors want their investment to pay off and customers just want a bad@$$ product. This is generally how business works. *sigh*
For you visual learners, you probably just heard a bunch of “blehblehbleh”, so here is a picture:
So, what is a DAO?
"DAO" stands for Decentralized Autonomous Organization:
- Decentralized: No central or single authority.
- Autonomous: Independent. Free-thinking. Functions on its own.
- Organization: Group of people.
DAOs are organizations enabled by blockchain. That's a fancy way of saying new technology that more fairly represents what members actually want because it gives them a voice.
In this case, members are not necessarily synonymous with owners or investors. Members are more simply just people with common interests who choose to participate in the DAO that reflect their interests.
Everyone gets a vote, and the blockchain manages and records that vote. The effect is a more transparent and automated decision process. Technology just does what it was designed to do; there’s no emotion, or backroom deals, or ulterior motives.
There are literally hundreds of DAOs right now, ranging from Bitcoin projects to art investment funds. There was even one that tried to buy the original US constitution!
Hey – visual folks – here’s your cue:
Call us capitalist hippies if you want – but we believe that if you’re part of the journey with us, we all deserve to participate in key decision making.
That doesn’t mean we want to bore you with the boring stuff – but the fun stuff. Like:
- What tools do you need to help you make sense of your financial future?
- If we engage with a partner, who should they be?
- Should we enter a new geographic market?
- How can the DAO benefit the world?
- Do you like the CEO?
As a SEC Registered Investment Advisor, we still abide by the rules and regulations that a traditional advisor does. That ensures we don't royally F#!% up something simple or obvious.
There you have it.
No smoke and mirrors. Just a group of people who are frustrated with the archaic system we have and believe there is a way to improve it.
We hope you will join us along for the ride.
How our DAO is structured, what are the rules of engagement, and how you can get involved!