by Fareha Khurram
A DAO—decentralized autonomous organization (pronounced “dow”)—is an organizational structure created with blockchain technology and is referred to as a kind of cryptocurrency cooperative. Its members frequently manage it through cryptocurrency tokens.
These tokens often grant certain privileges, such as the capacity to control a common treasury or cast a vote for particular proposals.
In short, DAOs are organizations that get together to accomplish a shared goal, such as making investments in start-ups, running a stablecoin, or purchasing a large number of NFTs.
What Do DAOs Do?
Over the past few years, cryptocurrency has profoundly disrupted a great deal of industries. Now that the sector has codified the governance of blockchain organizations, it is upending the principles of managing an organization.
DAOs allow participants from all around the world to pool funds and establish regulations for how to distribute them. In addition, computer code automates and decentralizes governance.
DAOs are owned and managed by their members, who have the power to vote on critical decisions using a blockchain-based governance token. In contrast to closed businesses, DAOs let just about everyone participate in a shared project with others who share their interests and influence the project’s course.
Businesses that provide customers more control over the services they use have emerged because of blockchain technology. These new services flip the old IT industry’s top-down strategy on its head by giving users a voice in creating a new breed of Web3-based businesses, games, and apps.
How DAOs Disrupt the Way Businesses Are Run
Venture capitalists (VCs) currently have a stranglehold on investment decision-making. They can determine essential assessments and the course of these businesses. It could also mean that important decisions are delayed or change the initial vision of the start-up. This control may seem reasonable given their financial backing and risk-taking.
The Web3 paradigm challenges this tradition by believing crucial business choices should be as decentralized as the underlying technology.
Anyone can participate and gain from being a part of a like-minded community of peers. DAOs are free from the hierarchical structure of the traditional business model thanks to their decentralized voting via a token governance framework, regardless of nationality, creed, or financial standing.
The question of if DAOs find a way to offer the expertise and unique insights of traditional VCs has yet to be answered, however.
By the People, for the People: How DAOs Can Usher In a New Era of Hollywood
Large organizations have historically controlled Hollywood; from the Golden Age studios to the current streaming behemoths, they have served as the gatekeepers. However, the authority of centralized intermediaries has been threatened in recent years by the promise of cryptocurrencies, blockchain, and other decentralized technologies.
In theory, decentralized technology is perfectly positioned to upend the movie business and its incumbents. Hollywood movie studios have merged to become a small handful of “mega corporations” solely concerned with shareholder profit. As a result, low- and mid-budget movies, which were the foundation of independent producers, have been marginalized.
But with Hollywood DAO, a more democratic system will be created.
Film.io: Bringing In a New Era of Film
Film.io announced the development of the first DAO for the film business, giving creators and viewers control over Hollywood decision-making by putting it on the blockchain. International filmmakers, moviegoers, and investors—thanks to the accessible ecosystem of Film.io—can evaluate and fund projects outside the current filmmaking monopoly.
Creators and fans may reserve a spot on the platform now. They can add projects, access special NFTs, enter giveaways and contests, and win prizes. They can also obtain 100 free Fan Tokens to promote the entertainment they love.
How DAOs Change More than the Film Industry
DAOs don’t just help Hollywood. For example, activists may find value in decentralizing their organizations to better advocate causes. Non-profit organizations might decide to join an open-source foundation or create a new DAO to manage their finances with fewer human working hours and less administration. Private school systems might find that using a DAO could allow them to pay teachers more fairly while allowing principals and boards to spend less time on administrative tasks.
We are in uncharted but exciting waters with Web3. Using digital “smart contracts,” DAOs can allow us to develop ideas that would otherwise be impossible. To learn more about Web3 and how your business can better communicate in this new era of the web, visit us at Web3 Comms and sign up for our newsletter today.