Democracy is one of the oldest still functioning orders of humanity. However, most democratic systems are based on indirect decisions, which takes governing out of the hands of the masses. With crypto assets and Decentralized Autonomous Organizations (DAOs), this could change forever—read on to find out how.
DAOs are essentially fully independent governance bodies that exist on blockchains of all kinds. Their purpose is to manage protocols or ecosystems in an unbiased way without centralized control. Most DAOs operate based on a voting system that allows holders of certain crypto assets to have a direct say in decision-making. In fact, it’s not only decisions that come straight from the community; the proposals and suggestions that DAOs vote on originate from members, too.
There are many DAOs within Web 3.0, as these governance bodies are generally considered the best option to keep control decentralized. One of the most important ones is the Uniswap DAO, but others, such as Dash, Aave, Maker, and 0x DAOs are also great examples. The first of its kind was actually Ethereum’s DAO, however, it suspended its operations in its original form a few years ago.
In most countries where democracy is the legal form of governance, citizens don’t actually have a direct say in the important decisions. Instead, they have elections every once in a while, which is basically their only touchpoint with direct control.
Before the crypto revolution, it was technically impossible to implement a solution that could provide more direct and frequent control to voters in a democracy, mostly thanks to lackluster IT security and infrastructure. However, with crypto assets and DAOs, the technological environment reached a level that is suitable for securely and sustainably implementing solutions around direct control. Countless perfectly functioning DAOs have proven that the system works, and from this point, real world adoption would be a few steps away.
Imagine if voters in a democracy could actually veto decisions of their government through their own DAO instead of having to go out on the streets and express their dissatisfaction by a mostly unheard demonstration. Crypto assets and addresses offer the verifiable, anonymous identity needed for such voting. To make it happen, each eligible voter could undergo a first and last authentication with official entities and prove ownership of a specific address that will be used for voting. This way, each person would get an equal but direct say, which could serve as a strong monitoring power over often corrupt and two-sided governments.
DAOs are among the most popular feats of the crypto world, and it’s easy to see why. Their ways of giving direct control back to individuals are truly unprecedented, and by properly integrating them into real-life governance, democracies of the future could improve drastically.
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