6 Must-Reads About DAOs

Recent opinions, perspectives, and research

February 26, 2022

DAOsWe’re all familiar with the common ways in which businesses are structured: corporations, limited liability companies, and sole proprietorships are examples. But there is a new type of organization that is gaining traction. Although it is very early days, DAOs (decentralized autonomous organizations) should be on the radar of anyone interested in the future of work. It will be interesting to see how they evolve.

DAOs are emerging as an alternative type of business structure, one that envisions a transparent, collective organization owned and managed by its members. Much of the work of a DAO is project-based.

A DAO’s financial transactions and rules are recorded on a blockchain. The governance of a DAO is based on community, instead of the traditional executive team, board of directors, etc.  DAOs use smart contracts to create trust at the organizational level. Smart contracts define the rules of DAOs and hold the treasury. The group makes decisions collectively by voting, so there is no central authority.

What is the future for DAOs? How will they evolve? Will they disrupt the way that businesses are organized and run? And what of the legal and regulatory issues that may arise? We’ve collected six recent articles that look at the promise, and potential pitfalls, of DAOs.

  1. What are Decentralized Autonomous Organizations- and Why Should You Care? from Fast Company

This short primer gives the basics about how DAOs work and explains their benefits and drawbacks.

  1. The Promise of DAOs, the Latest Craze in Crypto from The New Yorker

This article shares stories of some recent DAO successes and failures, and the potential for DAOs in the future ecosystem of digital startups.

  1. How to Get the Hottest Crypto Jobs: Start by Working With a DAO from Bloomberg

For a growing number of job seekers, gaining valuable experience by working for a DAO is a smart strategy. The project-based nature of DAOs gives people the opportunity to jump in and contribute, while building their resume in the process. This article explains why getting involved with a DAO might be the perfect training ground.

  1. DAOs as the Future? Hard Pass, Thanks from TechCrunch

This article offers an alternative perspective on DAOs. It raises questions about the practicality of DAOs for business, and whether decentralized smart contracts, on which DAOs are based, can effectively handle the complexity of many nuanced business scenarios, especially those that rely on human relationships.

  1. Moving Forward in the Metaverse – Are DAOs the Future of the Web? from VentureBeat

What’s behind the emergence of DAOs? This article looks at the power of community, the value of trust, and the role DAOs may play in the metaverse and the future of the web.

  1. Decentralized Autonomous Organizations: Tax Considerations from Cointelegraph

What are the legal and tax issues facing DAOs? As a new type of business organization, there are questions about how they will be treated legally and how they will be taxed. As more DAOs are formed, there is a need for clarity. This article provides insights into the current landscape.