I can't remember where I read it first, but DAOs strike me as a combination of the crowdfunding potential of a kickstarter with the incentivization and reward structure of the stock market. In other words, while kickstarter often involves trading money for non-monetary perks generated by the project, a DAO puts the entire process on the blockchain and allows for potential ROI for all involved.
DAOs can certainly run into the "too many chefs in the kitchen" dilemma if poorly managed, but the motivations of all involved tend to align better than other organization structures. This means that even without a centralized leader or "ruling body", a DAO prefiltered to a purpose participants already agree with (i.e. "Let's make money!" vs. "Let's make money funding movies of a given genre.") can function efficiently.
I also like the idea that a DAO doesn't have to remain fixed over time. Someone can put money in to support one project and withdraw upon its completion if they don't jive with the next project on deck. This gives DAOs a greater sense of community than a business given that corporate structure is inherently rigid and cumbersome by comparison. A DAO can almost be seen as the crypto equivalent of pop-up businesses but with the added benefit of scale and global reach.
!1UP
They are highly flexible and could help to enrich those who are normally excluded from the present system.
To get to that point, we need to get crypto in the hands of many different people. This is the first phase.
Posted Using LeoFinance Beta