What is DAO exactly?
A DAO is a relatively new form of politically decentralized organization whereby a network of people coordinate through software code and automation to govern themselves toward a stated objective. Autonomy here relates to an autonomy of process, building from the Ethereum blockchain’s smart contract function into a discrete living system. DAOs are testing the possibilities of decentralized self-governance and possess governance patterns which are expressed in distinct phases.
Most commonly, DAOs are built upon constituent blockchain-based parts that include a treasury, governance mechanisms such as (but not exclusively) voting, smart contracts for the execution of decisions, tokens as a way for people to buy or be “airdropped” into a collective endeavor, and ways to facilitate collective processes that supplant traditional organizational formats. They also integrate real-world feedback loops to ingest and process information from the outside world; for example, data oracles that translate real-time data feeds from external sources to support the DAOs decision-making and execution capabilities.
The vast majority of Blockchain networks and smart contract-based apps are organized as DAOs. Blockchain networks can use a variety of validation mechanisms. Smart contract apps have governance protocols built into the code. These governance protocols are hard-wired into the smart contracts like the rails for payments to occur, fully automated, and at scale.
Decentralized finance and the DAO
DeFi apps require “DAOs,” or Decentralized Autonomous Organizations, to operate. DAOs manage DeFi apps through the individual decisions made by decentralized validator nodes who own or possess tokens sufficient in amount to approve blocks. Unlike joint stock companies, corporations, limited partnerships and limited liability companies, however, DAOs have no code (although, ironically, they are creatures of code). In other words, there is no “Model DAO Act” the way there is a “Model Business Corporation Act.” DAOs are “teal organizations” within the business organization scheme theorized by Frederic Lalou in his 2014 book, “Reinventing Organizations.” They are fundamentally unprecedented in law.
The world of DAO is desirable. It’s also complicated, crowded and changeable. But what if we make it easier, stabler and more professional?
VD-DAO: Create autonomous communities based on DAO
VD-DAO is a new type of organizational ecosystem (DeFi 2.0+NFT+GameFi+metauniverse), and it is also a DAO-based decentralized autonomous organization. As an open and universal smart contract framework, VD-DAO can realize decentralized supervision and collective value management on the blockchain. Just as HTTP realizes the creation and interoperability of websites and web applications, VD-DAO can realize the creation of blockchain networks, DeFi networks, collaborative applications and DAOs, as well as the alignment of their interests, and finally build a new kind of openness Cooperation network. In this network, the collective can organize itself around common goals and values, beyond pure economic growth. We believe this will be a crucial step for society to move towards a more collaborative and sustainable future.
In VD-DAO, there is no centralized authority—no CEO, no CFO, no board of directors, nor are there stockholders to obey or serve. Instead, community members submit proposals to the group, and each node can vote on each proposal. Those proposals supported by the majority (or other prescribed portion) of the nodes are adopted and enforced by the rules coded into the smart contract. Smart contracts are therefore the foundation of the VD-DAO, laying out the rules and executing the agreed-upon decisions.
What we are going to do next?
VD-DAO is committed to using blockchain technology to contribute to the creation of a better, freer and fairer world as a promoter of DAO community construction.
VD-DAO will establish a decentralized open blockchain protocol to ensure the transparency of consensus algorithms and the clarity of contracts, so as to demonstrate collective wisdom through advanced democratic decision-making processes, and thereby enrich the blockchain ecosystem. At the same time, with the help of the idea of decentralized finance (DeFi) to make breakthroughs and innovations on the track of liquid mining, VD-DAO will adopt the “circular destruction mining” model, which is extremely deflationary, thus forming a more stable Digital economy model.
VD-DAO’s new event
VD-DAO’s global limited community whitelist places are being snapped up. Stay tuned.