ELOCOIN has a DAO model, let’s explain what a Decentralized Autonomous Organization is and why we chose to be ELO DAO.
Basically, a DAO is an organization governed by on-chain decision making and governed entirely by its community.
Therefore, its organizational structure will be almost entirely horizontal and its command mechanisms will not be based on hierarchical management. In short, it will be a decentralized structure.
Structurally, DAOs are far superior to traditional organizations. This is because they distribute ownership and power evenly, are easy to create and have significantly lower contribution barriers.
In other words, in a DAO there is no board of directors and all the functions that correspond to it, have to be approved by the holders, decentralizing power and decision making. They are governed solely by code, through smart contracts, and are governed by the collective work of collaborators and community members.
Are these the companies of the future?
The managerial structures come from the model of companies of the industrial revolution, where these structures also included even the workers’ village, which until the arrival of the automobile, lived next to the work, so that even the commissary and social benefits were under this model.
In the 21st century, and after two years of Covid-19, the world has become even more delocalized, counting on a complete adaptation to telework, the development of neural networks of delocalized businesses, and a strong implementation of DeFi and the management and traceability models enabled by the blockchain.
And it is precisely the traceability of the blockchain that makes it possible to attest to each of the decisions or interventions, along with the smart contracts that irreversibly execute the agreements defined therein, which makes one think that, just as there was a digitization in the 2000s on a massive scale, which was enabled by the Internet and broadband, now it is the Blockchain and decentralized governance methods, which is imposed radical changes in the creation of new companies and entrepreneurship or fundraising in the growth and transformation of businesses.
In addition, these structures governed by smart contracts are low maintenance cost, low time dedication to control, eliminating management and controllers, and why not say it, replacing the board of directors by smart contracts, which provide greater transparency and high added value.
If one day digitalization made secretaries disappear, and mobile telephony made company telephonists disappear, the first thing that will disappear from organizations will be boards of directors, which will be replaced by holders who will decide in place of the conventional command model.
In reality, the idea of a decentralized autonomous organization is very easy to explain: it is an entity that lives on the Internet and functions autonomously, but which to a large extent depends on the hiring of people to do certain things that the automaton cannot do on its own.
Currently, in Australia, DAOs are construed as corporations or unincorporated associations, but the Digital Law Association is looking to change that. Although DAOs are gaining ground in Australia, they are not recognized as legal entities as they have been elsewhere.
The State of Wyoming has made the big leap globally, commercially recognizing DAOs as any other limited or public company, allowing smart contract registration as a basis of governance, and facilitating their efficient registration in less than 1 day.
This business revolution allows entrepreneurs to be issued and receive funding through DeFi, as if they were shares, from anywhere on the planet, in this way, public offerings of shares, raising private capital, financing through funds or venture capital companies … have been supplanted by a tokenization, which is surely a variant to traditional models that opens new frontiers for trade and investment.
Example for begginers: The simplest DAO, let’s invent for this example, could be a TAXI DAO, where each cab driver has a governance token, and it is the blockchain who records the decisions that each partner, now represented by a GOVERNANCE TOKEN, and who vote, for example, the colors of his badge, or who can make which route, or the admission of new partners, what is more important for others, how payments are made … in this way, the board of directors is replaced by the holders, although the execution of the main work, still needs a cab and a driver (for the time being).
Why ELO DAO?
ELOCOIN has the undeniable vocation to boost business, and help entrepreneurs (for start-ups) or owners (for evolving companies) to launch their new DAO and thereby expand ELO DAO in its constellation of business relationships and our TradFi integration on DeFi mission.
We have seen how, over the past few years; DAOs have adopted a more people-focused, community-driven and community-growing coordination design.
Over the years, companies that have not been listed on the stock markets have found it difficult to have a partner from another region, let alone another country, with the difficulty of investment registration, as well as the demands of having to delegate to a few people the trust to govern and oversee their investment.
ELODAO stands as a promoter through its “Initial ELO DAO Offering” (IEDO), of companies that make the leap to this DeFi environment, incorporating traditional economy companies to the DAO model.