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A new day a new thread 🧵 Meet the #DAO story! P.S. Don't be indifferent: Like, retweet, and maybe even subscribe! It's important for me! 🙏

1/24 The #DAO is an account of how technology is transforming the structure of society. Symbolically, the term DAO originally came from a sphere far removed from #crypto - Chinese philosophy But the meaning surprisingly coincides with what DAOs represent in our world already.

2/24 The DAO is the Way. And, if in Daoism we were talking about the correspondence of human actions to special values and attitudes, Then in modern realities we are talking about the emergence of a new stage on the Path of evolution of social & state systems.

3/24 Let's understand what #DAO is in a coordinate system we already understand - #blockchain and #crypto, and find out Why it's not just a tool for building ludicrous things, but really a quantum leap (OH NO 👀) for all of humanity.

4/24 A DAO (Decentralized Autonomous Organization) is a form of organization free from government control Where management is done directly by the members And the execution of decisions is guaranteed by fully transparent smart contracts.

5/24 Each DAO token holder has votes on the decisions of the platform according to his share In most cases each holder can put suggestions for improvements to the platform to a vote When proposals pass a threshold of approval, they are adopted and implemented in the blockchain

6/24 DAO members are anonymous and can be located anywhere in the world Therefore, attempts to regulate DAO are as successful as fighting with air - NONSENSE And they're already underway (attempts) = WY was the first state to make DAOs an official form of company registration.

7/24 Contrary to popular belief, one of the first examples of DAO was not at all "The DAO" of brothers Jentzsch and Stephan Tual, supported by Buterin, It was the cryptocurrency #DASH founded in 2014.

8/24 It was there that the DAO governance mechanism was applied, with decisions made by the MASTER_NODES group. However, the token failed to enter the bright future:

9/24 When distributing coins, the algorithm deliberately allowed a small number of wallets to suddenly gain almost complete control over the management of the token And (subsequently) the coin was actively involved in questionable transactions. NEVER TOUCH THIS!

10/24 The start has been made And now, in 2016, the infamous crowdfunding venture fund The DAO is launched An exploit of which, as you may remember, led to the fork of ether on the exalted #ETH and the overthrown #ETC

11/24 The gist of the idea was that investors could vote for themselves on where The DAO funds should be invested. But, what is instructive in this story, the community had a huge demand for DAO, which exceeded all expectations many times over.

12/24 The crowdsale raised over $150 million (and that's back in 2016!) in less than a month. Perhaps no other venture capital fund has had such success in such a short time in crowdfunding.

13/24 Since then, many names have already emerged in the #DeFi segment that are managed through DAO BitDAO auction, which attracted $365 million in investment from 9,200 (pieces) investors Note - no investment banks (Goldman Sachs, Morgan Stanley and other dinosaurs) involved.

14/24 So - let's turn to the traditional corporate sector and see: how big companies are being run now. More often than not, we see four levels: 1. Stockholders (SH) - can number in the thousands: from investment funds and states that hold large stakes, to APES from reddit

15/24 SH most often get some sort of report from the company Sometimes meet for annual meetings And - most importantly - elect the Board of Directors 2. The BoD is the supervisory which is supposed to make sure that the company puts the interests of the SH first

16/24 This closed club meets several times a year. Receives reports from the Board, approves the CEO's salary, and approves the dividend policy. Only at the 3rd level of the Corporate Hierarchy do people appear who actually run the company on a day-to-day basis:

17/24 3. The Management Board - people with colossal salaries and bonuses, who decide all operational issues and directly manage the company. Usually these are tops with 20-30 years of experience who manage the rest of the 10-50-100 thousand employees.

18/24 4. Employees - in addition to the working class, each company has a substantial middle and back-office. Accountants, lawyers, IT and so on. So why is it so difficult?

19/24 These lvls of the hierarchy were created at a time when direct participation of SH in decisions about the company was almost impossible, After all, you would have to take tens of thousands of people every day to meetings or make conference calls for thousands of ppls.

20/24 What will change with the arrival of the DAO? Everything will change! We see that hierarchy levels, as well as many other parts of the corporation, are becoming simply unnecessary: Archaisms of the age, vestiges on the body of human development.

21/24 After all, at the DAO, SH can vote on company policy proposals at least every day. No need to convene BoD, pay for conference rooms at the Ritz_Carlton or Four_Seasons, rent Maybachs and private jets. No need to keep books and pay for months-long audits by KPMG and E&Y

22/24 All transactions are visible in real time Corporations of the future are doomed to evolve into a DAO organizational form Those who refuse to change are likely to be recycled by the millstones of history into methane. However, crypto will not be limited to corporations.

23/24 Not only any type of legal entity, but entire states can be reincarnated in DAO After all, even elections are only necessary to delegate political decision-making: Since it is physically impossible to gather 50-100 million citizens at once to make these very decisions.

24/24 Everyone can know where the funds have been spent, and with the DAO it becomes possible. To buy villas in Monaco, a closet of luxury watches, or a private collection of luxury foreign cars? Or Hypersonic rockets, free WI-FI for all, and a Hyperloop NY - LA?