DAOs: what, how, and why

Published over 2 years ago • 3 min read

Hi nerds,

I salute you from Miami, where, after quitting my job last month, I’ve dove deeper into the Web3 rabbit hole.

Today, combining my passions as a Software Engineer, Teacher, and Political Science major, I’m happy to announce I’ve joined Aragon as a Developer Advocate, helping engineers around the world build the future of work with DAOs.

Let’s decompose what that means.

3 brain farts

🌱 How we got here: The future of humanity rests on how we collaborate at scale. We need each other to survive and thrive, but working together isn’t an easy task.

Disagreements, trust-less relationships, lack of communication, and hard-to-follow processes make it hard to go from idea to action.

For ex - let's say I meet someone online with my same vision. How could we coordinate and execute impact?

  1. We start setting up a plan through Zoom calls.
  2. But then, to execute, we’d need funds. Who’s account should funds go to? How do we know we can trust each other?
  3. We’d need to register an organization. Who's name should it be under? Should we set it up in her country or mine? Also, why does it matter if we’re going to be working online anyway?

You see, current legislations for collaboration are though-out for a world of geographical proximity. Today, we’re exchanging ideas with people from around the globe, but it’s increasingly hard to bring those conversations into world-changing action.

Enter the DAO.

DAO vs Companies
Source: Aragon

🌎 What this means: You can imagine a Decentralized Autonomous Organization as a public company with some variations.

A DAO is really an internet community who's members coordinate resources around a shared vision and ensure trust among strangers thanks to tokenized incentives and ownership.

At the core of a DAO sits the organization’s treasury. How funds are allocated is decided by token-holders, allowing members to participate in a trust-less manner.

You see, ownership is Web3’s super power because in DAOs, community members are your costumers, teammates, and investors.

DAOs may still be somewhat unregulated, but this doesn’t mean they are lawless. Rules on rituals, membership, and voting are set in written constitutions often enforced by smart contracts and accessed through websites backed by distributed blockchains.

The future of work is digital and DAOs enable anyone, anywhere, at any time to work on a shared mission.

Coordination has so far been a combination of consensus enforced by violence.

🚀 Where we’re headed: I used to think this was a crazy idea real only to the crypto geeks on living on basements.

Turns out, DAOs today have market caps worth billions of dollars and your kid will likely work for a DAO in the near future.

Today, launching a DAO is easier than ever with tools like Aragon, enabling the creation of a full-fledged decentralized organization in only a few clicks and cents (here's how).

As long as you have an internet connection and a crypto web wallet like MetaMask, you are good to go. But just like any organization, the harder part is still maintaining it.

Problems like compliance, innate centralization of power, contribution levels of members, etc, are all challenges still faced by the DAO community.

But with the landscape growing by the second with NFT projects, social groups, and investment organizations, the opportunities within this sector are literally endless.

DAO Landscape

2 intellectual goodies

"For the first time ever, we have a transparent, immutable, programmable, substrate upon which to build new institutions. Institutions that cannot be corrupted even if their founders are."

~ Bankless, one of my favorite crypto newsletters.

"Improving coordination means better resource allocation, less corruption, and more symmetry between value created and value captured. It’s bad for intermediaries, good for everyone else."

~ Ultimate DAO Report

1 funky audio

When reading things that make my brain explode, I usually go for chill, often hippie, kind of music.

Here’s my favorite playlist to relax and enjoy a good read.

winds down playlist by juliette_chevalier

& featured snacks

My favorite DAO articles:

Thanks for reading.

As always, feel free to connect by hitting reply and sharing a juicy thought 💡.

We all help the curious community grow.

Talk soon,

Jules 🤸🏻‍♂️


Learning to code is 21st century super-power. I work as a Software Engineer and teacher around the world. My purpose is to empower others by showing them what we can do with our brain, a computer and wifi.

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