DAO project prices increased sevenfold in March. Will this be the next hot spot?
Recently DeFi, Poka, AND NFT have been hot. At the same time, thanks to DeFi, DAO is coming back into the public eye.
The origin of the DAO
In 2016, Ethereum crowdfunded an organization called The DAO.In 2016, there is an organization called DAO that crowdfunded on Ethereum.
The project raised 12 million ETH, 14% of the ETH in circulation at the time.However, more than 3 million ETH were stolen by hackers.To make up for this loss, the ETH forked, giving rise to the famous forks of ETH/ETC.
The DAO project was once shining, but it came to an end. With The concept of DAO, it also entered the stage of being hidden and gradually faded out of people’s sight.
Now that DeFi is hot, DAO is back in the spotlight.
And so it goes back to the governance token YFI of Yearn Finance.After its founder made it clear that YFI had no financial value, it soared from $3 to $4,500, creating a 1500x myth in two days.
The huge wealth effect brought by YFI makes people pay more attention to DAO.
What is DAO?
A decentralized, autonomous organization that operates through smart contracts and encodes transactions and rules on a blockchain to achieve open, fair, unmanned and autonomously operation without legal entity.
To understand it simply, DAO moves real-world organizations online and writes the operating rules of the organization into smart contracts, so as to constrain participants and ensure openness, fairness and justice.
What are DAO projects?
The DAO is a tool that serves an organization.This tool can be divided into three types.
1. Universal DAO: Aragon, DaoStack, Kleros
2. Private DAO: MakerDAO, KyberDAO, Synthetix, and Yearn. Finance
3. Special DAO: MolochDao, KarmaDAO, Buidl (DFO HUB)
The universal DAO provides a set of components for the project to create the DAO organization, similar to aliyun.A private DAO primarily serves a project, similar to a private server.Special DAOs are designed to implement certain functions, similar to servers that perform certain functions.
A private DAO is created for the project, such as MakerDAO, KyberDAO, Synthetix, etc., and it serves for the project, so there is no token for it.
The following is mainly to introduce universal DAO and special DAO that have tokens.
1. Universal DAO
1) DAO Aragon (ANT) : A standard Ethereum DAO production factory.More than 1400 DAOs have been created at Aragon, including Aave, Centre and, Melon, Stake Capital, CurveDAO, rDAI, Commons Stack, LexDAO, PieDAO and other well-known blockchain projects.
2) DAO DaoStack (GEN) : GEN attaches importance to “decentralized decision-making mechanism”, and tries to find a proper balance between the fairness and efficiency of the proposal, so as to make large-scale decentralized decision-making model possible.
3) Decentralized Arbitrator Kleros (PNK) : the “court” on the chain — the basic arbitration layer of a decentralized network.The Kleros Court platform has more than 200 jurors and handled more than 150 dispute cases.
2. Special DAO
1) MolochDao: A DAO praised by Vitalik Buterin and one of its members.Its immediate goal is to fund ethereum 2.0 blockchain replacement.
2) KarmaDAO: Andrew Lee, founder of Web3 Journal, announced the official launch of a DAO, which exists in the form of private chat group on Telegram. To join the group, users need 200 Karma tokens in their wallets. Once the tokens are insufficient, the robot will kick them out.
3) Buidl (DFO HUB) Buidl is known as the tool Arsenal of DAO, which focuses more on the concept of building new chain of companies decentrally with various tools flexibly, rather than providing governance tools for the original organization.
DAO or DeFi, which has more potential?
DAO is to DeFi what DeFi is to ETH.The current DAO may be the same to DeFi as DeFi was to ETH in 2017.DAO is important, but it’s very early, and it’s still a long way from full explosion.
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