Decentralized Autonomous Organizations (DAOs) gained media attention in November 2021 when the ConstitutionDAO set out to buy a rare copy of the US Constitution at Sotheby's. The project raised 47 million dollars, but lost the auction. However, since the creation of the first DAO in 2016 and to this day, this governance model has attracted the attention of an increasing number of people.
What is DAO? It’s a blockchain-based community managed by all members of the organization (decentralized governance model as opposed to traditional hierarchical models). All the rules and interactions in DAO are built on a code and smart contracts with automatic execution.
“DAO = automation at the center, humans at the edges”, - said Ethereum co-founder Vitalik Buterin.
Citi Group analysts believe that the DAO will be the main governing body in the new metaverses. True, it’s not yet known what centralized technology giants and representatives of regulators will do in this story.
Will they transform themselves into a DAO or will they prefer to ruin this concept with all the forces they have?