DAOs are making corporations look like dinosaurs

DAOs are the real revolution, exposing corporate structures for the restrictive, archaic exclusionary system that they are. You have to have the right passport, residency, connections, wealth, etc. to make any real decisions in even public companies.

But with a Decentralized Autonomous Organization, the “person in charge” is a mathematical algorithm that doesn’t give a satoshi about who you are as long as your wallet contains the DAOs tokens. With DAOs, money finally doesn’t have skin color or gender. Ownership power is voting power is instant joining/leaving power.

For example, let’s look at the world of money lending. Here are the top yielding bank savings accounts:

Source: Nerdwallet.com; pulled January 17th, 2022.

If you’re lucky, you can get half of a percentage point for lending out your money in the United States. Meanwhile, the inflation rate in the U.S. has reached 7% in December 2021.

So who is really getting the yield on your money? And who sets that rate? Not you, not even if you own shares of Discover or American Express. Good luck getting any real say in their operations.

In contrast, let’s look at a well-known DAO: Compound Finance.

Source: Compound.finance/markets; pulled January 17th, 2022.

Look at that: you can get a 3% APY on depositing USDC, a stablecoin that tracks the USD (aka, always equals around $1). But that’s just the yield. With Compound, you can actively participate in governance just by holding COMP tokens (which you can either buy or earn by lending or borrowing). You can leave the DAO and get your funds cashed out immediately by calling a ragequit function of Compound’s smart contract. Everything is quick and automatic via a smart contract, not long paperwork or some jurisdiction of a specific country/state. And if you really hate Compound, you can clone (“fork”) its code and create your own copy (of course, you’ll need to convince people that yours is better).

This is true democracy, true transparency, true equality. Look at Compound’s governance:

Source: withtally.com; pulled January 17th, 2022.

The founder of Compound is only the 5th largest voter. The top voters are VC firms because, well, they do have a lot of money to invest. But if let’s say 2 billion people invested a dollar each, they would more than cover Compound’s current $1.3B market cap and have full voting power. The top voter/owner of COMP, Andreessen Horowitz only holds $39M worth of COMP. It’s easy to magine the GameStop or DOGE army mobilizing and becoming the top voter/owner group in COMP if they so wanted.

And Compound isn’t some theoretical blockchain project, NFT craze, game, etc. — it’s a serious lending/borrowing marketplace with over $13.6B of funds currently supplied by users, managed by smart contracts (algorithms) without a brick and mortar bank or a government charter or any other restriction. Anyone can borrow, lend, earn, and vote. Anyone.

You may have heard about ConstitutionDAO in the news, which was just a “bunch” (a lot, actually) of people pooling ETH together to buy an original copy of the U.S. constitution. They were outbid by some billionaire, but imagine them rallying around something like saving the rainforest or building homes for refugees.

The painful truth is that we all have an experience about being screwed over by a bank, government, or company of some sort. We all had seen horrible bosses and entitled rich people flaunt their power. With DAOs, “power to the people” finally becomes reality.

Amazingly, some blockchain project teams are embracing the DAO model because they truly believe in the real-world use of what they are building and that the community will reward them for their hard work. So instead of just taking a lot of VC money or selling tokens in an ICO while keeping a huge chunk of tokens to themselves, teams are letting the community decide with development to fund from the DAO’s treasury, which improvement initiatives to pursue, etc.

The Dexe Network team is embracing the DAO revolution in full. We already have products used and loved by the community (Wallet Info, W2W Copying, Dexe Tournament Service) and services that other projects are lining up to use (111PG) in our ecosystems, plus powerful products soon-to-be-shipped (Dexe Investment etc.). The team has proven itself over and over to the community and will gladly continue to do so under the governance of the community-led DAO. It’s an exciting time for all us DeXers!

About DeXe

Dexe.Network is an ecosystem of tools that bring professional trading to DeFi and DeFi to trading with free tools like Wallet Info and Wallet-to-WalletCopying, services such as 111PG and the Kattana Terminal, and more components that complement each other and solve pressing market needs. At the core is a decentralized social trading platform that operates via autonomous smart contracts and includes tools for virtual currency allocation and automatic rebalancing. It eliminates the risks of transferring digital wallet details such as private keys and API or any virtual currency data to a third party. Most importantly, the DeXe Network connects successful traders and followers in a transparent, verifiable way for the benefit of both groups.

Stay tuned!

Telegram channel | Telegram chat | Facebook | LinkedIn | Twitter



Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store