Ten years of latent and burst: Dao you don't know

Published on 1/15/2022   581 views   0 Comments  

Dao began to blossom everywhere this year. The original version has not been seen clearly. New Dao projects have come suddenly. From defi to defi Dao, from public chain to co construction, Dao seems to want to reshape the game rules of the whole industry in a subversive situation. This time, we will re sort out several important development stages of Dao and its core characteristics in each stage, which will provide a preliminary reference for us to judge the next trend and possible innovation of Dao.

Thought experiment proposal - successful demonstration of bitcoin, an invisible Dao giant

Dao (decentralized autonomous organization) is literally translated as a distributed autonomous organization, which encodes the organization's management and operation rules on the blockchain in the form of "smart contract", so as to operate autonomously without centralized control or third-party intervention. It is reported on the Internet that the initial thought sprout was proposed by bitcoin contributor Mike Hearn and described it as a decentralized organization scenario without leaders in an ideal state 30 years later.

From the current practice results and development, bitcoin appeared at that time is already the greatest and successful case of Dao practice. Under the leadership of the technical framework, global participants jointly maintain the bitcoin distributed ledger and have successfully operated so far. However, this great success has not been reproduced in subsequent cases, and it is difficult for any project to match the huge network autonomy form built by bitcoin.

Enlightenment - bitstock

Before 2017, bitcoin, the model of blockchain, was not popular, let alone a new concept such as Dao. There was little about Dao infrastructure development. 2014, former block Daniel Larimer, CTO of one, launched bitstocks and launched them at EOS The implementation of IO public chain, which is used to realize the bitcoin extension protocol of an ideal free market financial system, has created a new financial product called polymorphic digital assets, aiming to help everyone become an exchange. Simply understood, bitcoin shares are intended to create more copies of bitcoin. However, this design still shows the characteristics of centralization in the follow-up development. In the version 4.0 upgrade, the core developers of bitshares changed the voting rules without the consent of the community, which aroused widespread dissatisfaction in the community that it is not only centralized, but also the new rules are too tough.

During this period, there are dash, digix, and the most famous and sensational Dao. At that time, Dao was highly praised by V God. He firmly mentioned that as long as he had a complete platform smart contract based on Turing, he could support distributed autonomous organizations without human interference. The Dao is a practitioner based on the complete platform of Ethereum Turing, and has created an unprecedented huge amount of crowdfunding in one fell swoop. By locking the raised funds in the Ethereum smart contract, obtaining the corresponding Dao tokens according to the amount invested by the crowdfunding people, and the participants simultaneously have the right to vote on the investment project proposal and governance, all decisions will make a better conclusion than a certain expert or leader after integrating the wisdom of many people, so as to initially realize the so-called "crowdfunding wisdom" and autonomy. At this time, the management model of Dao initially entered the "public governance", rather than the "arbitrary power" in the centralized system.

Unfortunately, the Dao didn't last long. Due to the technical loopholes in the smart contract, hackers stole crowdfunding naked and suffered a fatal blow. Although Ethereum finally returned the stolen funds through the implementation of hard bifurcation, the project was unable to recover, and it quickly fell to the altar within three months. The mixed joys and sorrows just reflect the lack of Dao technology, and the consideration standards at that time were often linked to the amount raised or volume manufacturing, making it difficult for Dao builders to harvest long tail value and create more value depressions.

Continuation - long exploration

The introduction of distributed autonomous organizations from Wikipedia came to an abrupt end. The Dao in 2016 did not lay out and introduce the development in recent years. Obviously, in the four years after the Dao, the whole industry has pressed the slowdown button, and decentralized autonomous organizations seem to be gradually out of our sight. However, if we continue to resume trading, Dao did not stop in the quiet period of those years, but continued to explore and develop in the bear market, which just reflects the same situation of the whole industry. It can be said that in the mood mixed with confusion and hope, everything is where we can't see, and everything is surging. Based on the long dormancy, the more perfect the performance of the public chain and the more capable it is to support the creation of more Dao applications, which lays a foundation for welcoming the "spring" of Dao.

Accumulation - Uprising and new rules of the game

The time comes to the summer of Delphi in 2020, which is also the year when the whole circle welcomes new opportunities, including Dao. But we also found an interesting phenomenon. When baidu searches Dao, you will find that most of the pop-up results focus on "what is Dao?", This also indirectly shows that Dao, which has developed for more than ten years, is not well known and is still in the stage of popular science and user education. From the overall situation of the market, well-known projects had emerged in Dao at that time, such as the more popular makerdao protocol in defi. However, under the heat, people took it as the benchmark of defi project and ignored its full Dao project essence.

In 2021, the signs of Dao outbreak are looming. In March, the Wyoming Senate committee formally voted to pass the Dao bill, allowing limited liability companies to be transformed into Dao, which officially came into force in July. At the end of the year, Dao became more and more popular. Sequoia Capital changed twitter to "we help courageous people create a legendary Dao, from creativity to token airdrop. LFG." Caused great concern. In the messiri 2022 forecast report, it mentioned that Dao is an organizational model of cooperation among individuals and a form of economic cooperation in pursuit of efficiency. Dao is not only a community vote, but also a transformation of various things and company models in the future. The development space of Dao may be more imaginative than NFT.

The era of everything can be Dao has come, and the popular Dao projects in the circle have sprung up. For example, the popular opendao during the new year's Day holiday in 2022, the merge creative rights auction shared by 29000 collectors, and Dao organizations that purely serve the development of agreements and projects, such as the Lao and flamingo, media Dao organizations bankless Dao and GCR, funding Dao organizations uniswap grant, AAVE grant, and collection Dao organizations have emerged.

According to the analysis, the rise of the DAO wave makes the landing direction diversified and innovative, but the internal game of the project is still single and identical, and can only serve as another bubble stage. The good effect is that more and more projects begin to defend their rights through Dao, or gather more small forces to create possibilities that they did not dare to try in the past, and get due incentives and rewards in their participation. Dao can break out. Its essence is that more and more micro producers see the innovation and changes brought by decentralized technology, more organizations and people pour into creation, and have technologies and industries that can borrow from each other, such as cross chain, VR, privacy computing, games, metauniverse, NFT, and can continue to be connected and utilized crisscross. In short, as a product of the development of the blockchain industry to a specific stage, the ultimate goal of Dao is to move towards complete autonomy, collaboration and decentralization, and such exploration needs more time.

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