Decentralized autonomous organizations, known for short as DAOs, have become the backbone of the world of cryptocurrencies.
The rationale for the DAO is to enable businesses and organizations to operate fully without the need for a hierarchical management structure. As shown in this Cointelegraph tutorial, it’s like a vending machine that offers a snack for a batch of coins, and then uses that money automatically to reorder stocks. There is no need for human intervention to keep the machine running, since all the processes you need to run are pre-written in code.
Beyond this real-world example, the possibilities of the DAO are endless. There is only one problem: Some people feel that the potential and promise that this technology provides is not being fully exploited. Many DApps use the DAO for governance purposes only so that community members can submit proposals and vote.
A growing group of cryptocurrency enthusiasts believe that DAO will play an important role as the world moves to Web3, paving the way for fully decentralized companies that can provide the same level of relevance and influence that the centralized tech giants currently have in the Web2 world. … Increasing the value of the Internet requires a new organizational method in which members of society manage decentralized applications.
But in order to achieve this, the DAO must evolve. To achieve universal adoption, technical limitations must be removed and eliminated.
Besides the vote
MetisDAO believes that decentralized, autonomous organizations should provide community members with more than just a voting mechanism. Instead, he argues that the DAO should help manage their collaboration so that everyone can contribute to the development of the project and receive incentives based on their hard work.
But at present, the DAO architecture means that it is not suitable for large applications. Smart contracts are widely used and the programming language is not always ideal for implementing complex business logic. Also, focusing on voting is impractical for a large decentralized company and can distract from the big picture. Large companies do not hold board meetings every day to vote on operational issues – rather, they have a structure to oversee day-to-day operations. A DAO needs the same thing.
Technically speaking, changes are also required. High gas costs, low levels of efficiency and lack of restrictive tools that can support DAO management overshadow Tier 1 solutions. Evolution is also necessary so that community members can easily trust each other.
Make decentralized companies a reality
MetisDAO has an essential mechanism for building trust and holding people accountable. This approach is known as optimistic management and it seeks to unite the members of society through the use of permanent bonds that provide financial participation and motivation for the participants to do their best on the project. Partners who fail to deliver on their promises can end up being punished through a combination of rejection mechanisms.
Decentralized companies can be created in three easy steps, and the built-in trust means they can work with anyone. Over time, users can accumulate reputation power, a decentralized enterprise credential system based on the history of blockchain collaboration. This means that each wallet address can be evaluated so that users can determine whether or not they are trusted.
Metis is also a second layer solution (through a hard fork from the Optimistic Rollup) that acts as a side chain on top of Ethereum’s main chain. This paves the way for a significant increase in scalability and significant reductions in gas costs. Most transactions fall into this side chain and are grouped together when a connection with the main chain needs to be established. Moreover, many services and mini tools can be developed and distributed through this infrastructure.
The project also offers several features for managing a DAO – and community members have already developed task management, knowledge management, and event management. This is combined with a simple interface that Web2 users will find easy to understand and simple APIs that make it easy to integrate with other DApps.
Over time, Metis hopes the DAO will be more than a shell that creates no value. Reform is essential for good governance. Many of the projects are the home of token owners who are determined to harness the power of arbitrage – people who have little or no intention to vote because they don’t care what happens in society.