By 0xjim
Why DAOs are superior businesses and investments than traditional companies
If you’ve been following my blog for the past few months, you know that I’m incredibly bullish on Decentralized Autonomous Organizations, DAOs for short.
These organizations are formed by groups that have a common mission/objective that actively choose to be governed by logic that is coded into the blockchain.
So instead of having rules that live in centralized systems like the bylaws of a corporation stored in a municipality’s file cabinet (or cloud storage if they’re part of the 21st century), DAOs have its rules immutably minted on-chain.
I’m “bullish” not in the traditional investment sense, but rather I’m very confident that this organizational structure introduces a brand new way of working that is better than the structure of a traditional company.
While I don’t think that every company will become a DAO, I think that many organizations will seriously consider it when officially forming — they’ll deliberate between forming a traditional LLC or S-Corp vs. a DAO.
