<span style="font-weight: 400">The future of democracy lies in decentralization, specifically in DAOs. Decentralized autonomous organizations run through blockchain technology. They are the next big thing in governance, creating new ways to organize communities without any centralized authority and giving democratic power back to the people. DAOs are currently used primarily in the cryptocurrency world. Still, they have an enormous potential to be applied to real-world politics and revolutionize how citizens make decisions that affect their daily lives.</span>

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<h2><b>Charity Or A Freelancer</b></h2>
<span style="font-weight: 400">DAOs can operate similarly to nonprofits and corporations. They may even have explicit departments and team leaders that guide the other members. These team leads are similar to managers, but leadership in a DAO tends to be fluid and non-hierarchical. In some ways, DAOs are more similar to the "Teal" organization, which encourages its employees to bring their entire selves to work.</span>

<span style="font-weight: 400">While the DAO structure is new, it is already generating criticism for its structure and legality. For example, the </span><a href="https://www.technologyreview.com/2016/05/17/160160/the-autonomous-corporation-called-the-dao-is-not-a-good-way-to-spend-130-million/"><span style="font-weight: 400">MIT Technology Review published an opinion on DAOs</span></a><span style="font-weight: 400"> in 2016, but it has not since changed its view. The key difference between a DAO and a charity is its structure. A DAO's membership structure is a decentralized network with a democratic structure. The voting, governance, and other important parts of a DAO are defined by its members.</span>
<h2><b>Ongoing Proposal-Making</b></h2>
<span style="font-weight: 400">The DAOstack platform uses prediction markets combined with DAO governance to improve its democratic performance. </span><a href="https://daostack.io/"><span style="font-weight: 400">DAOstack</span></a><span style="font-weight: 400"> has a solution that solves this problem by providing holographic consensus. In addition, the DAOstack model allows DAOs to scale to hundreds of participants, enabling ongoing proposal-making in a democratic environment. This model may be a good fit for a democratized society with so many people involved.</span>

<span style="font-weight: 400">DAOs are emerging as a new form of democratic coordination. However, while their advantages are numerous, they pose some drawbacks as well. For example, achieving group consensus can take time and frustrate those involved in the process. Furthermore, DAOs require the ongoing engagement of members, which may discourage some participants from engaging. In addition, voting for decisions requires individuals to remain committed, which can be time-consuming and difficult.</span>
<h2><b>How DAOs Can Make The Future A Better Place For Us All</b></h2>
<span style="font-weight: 400">A Decentralized Autonomous Organization (DAO) is a new and growing form of social organization that has never been tried before in the history of humanity, so predicting its future behavior or even how it might grow to affect society is very difficult if not impossible to do. However, there are certain things we can say about Decentralized Autonomous Organizations today, as they currently exist, and these points are worth considering as you contemplate the potential benefits and consequences that this type of organization might have on our world.</span>
<h3><b>Replace Deadlocked And Corrupt Governments</b></h3>
<span style="font-weight: 400">A network of interconnected community Decentralized Autonomous Organizations will take over the governance of global issues such as </span><a href="https://www.cryptoknowmics.com/news/blockchain-and-climate-change-the-transition-from-villain-to-unsung-hero"><span style="font-weight: 400">climate destruction</span></a><span style="font-weight: 400"> in the near future. In addition, a world federation of DAOs will develop centralized implementation organizations in the physical world to coordinate offline work, such as shifting economies away from fossil fuels and reducing greenhouse gas emissions. The use of DAOs for these purposes is far-reaching and is already underway.</span>
<h3><b>Govern Structures for People To Interact With Each Other</b></h3>
<span style="font-weight: 400">Decentralized autonomous organizations, or DAOs, are organizations in which members pool their money to accomplish a common goal. These goals may include meeting, socializing, creating, buying, or funding something. Members of a DAO make decisions, and the good ones result in value creation and more users. They can be more democratic than traditional organizations. And, because DAOs are project-specific, they can be wound down quickly.</span>
<h3><b>Reward Contributions Based on Value</b></h3>
<span style="font-weight: 400">DAOs function like open economies in which individual contributions are rewarded based on their value to a network. Everyday actions that benefit the network become income-generating opportunities. The potential for such systems to revolutionize the way we do business is immense. In the future, DAOs may even improve the livelihood of millions. But how can they work? Let's explore the possibilities and their implications.</span>
<h3><b>Transparency</b></h3>
<span style="font-weight: 400">In addition to making governments more accountable, DAOs can help restore people's power. In particular, DAOs should be transparent, inclusive, and accessible. Using centralized adjudication organizations, they can also oversee DAO governance. As such, they could replace the nation-states' system, which relies on unlimited growth, depletion of resources, and national militaries.</span>
<h3><b>Participatory Consensus</b></h3>
<span style="font-weight: 400">DAOs are an important part of the virtual society. They offer people a stake in the organization's success and provide a mechanism for democratic participation. DAOs are also a great way to test out the principles of decentralized governance. This kind of experimentation may be more effective than attempting to replicate democracy in the physical world. For example, if a group wants to change a voting system, they can use DAOs to propose changes.</span>
<h3><b>Rights-Affirming</b></h3>
<span style="font-weight: 400">Creating DAOs is a step towards the ideal of a digital society where there is empowerment for citizens to vote freely and decide their fate. These new institutions is applicable in many settings, including governance. In fact, former Aragon executive director Stefano Bernardi declared 2019 as the year of the DAO. He cited six global trends that drove the adoption of DAOs, including the normalization of participation in governance through open-source communities and other types of social media activism. Moreover, these new institutions can channel people's feelings and emotions into concrete action.</span>
<h2><b>Challenges</b></h2>
<span style="font-weight: 400">While the idea of a DAO is quite interesting, it is not yet ready for mainstream adoption. Various legal challenges and limitations stand in the way of mainstream adoption. They range from governance questions to concerns about liability. In contrast to traditional organizations, DAOs lack formal legal recognition. As such, their members are exposed to the liabilities of the organization.</span>

<span style="font-weight: 400">Furthermore, they lack the ability to engage in transactions with traditional legal enterprises. Finally, the most significant disadvantage of DAOs is their lack of access to centralized control mechanisms. This impedes the implementation of governance mechanisms in traditional organizations.</span>

DAOs Have a Big Role to Play in the Future of Democracy

The future of democracy lies in decentralization, specifically in DAOs. Decentralized autonomous organizations run via blockchain technology

Oluwademilade Afolabi is a freelance writer and editor passionate about blockchain technology and the health industry. He is a 6th year medical student, and has worked with various companies and blogs since the blockchain revolution began.

DAOs Have a Big Role to Play in the Future of Democracy

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