Article written by quest author Eloisa Marchesoni.
Did you ever hear about Decentralized Autonomous Organizations (DAO’s) communities, where members have voting rights and work alongside the CEO?
DAO’s, are the most recent trend.
“This community-owned type of business model has the potential in Network Marketing / Direct Selling / Social Selling to revolutionize the governance of corporations and smaller businesses by improving the way we organize.”
- A DAO is a community-led group governed using NFTs that grant members voting rights. DAOs are an effective and safe way to work with like-minded folks around the globe.
- Think of them like an internet-native business that’s collectively owned and managed by its members.
- They have built-in treasuries that no one has the authority to access without the approval of the group.
- Decisions are governed by proposals and voting to ensure everyone in the organisation has a voice.
There is no CEO who can authorise spending based on their own whims and no chance of a dodgy CFO manipulating the books. Everything is out in the open and the rules around spending are baked into the DAO via its code.
Why do we need DAOs?
Starting an organization with someone that involves funding and money requires a lot of trust in the people you’re working with. But it’s hard to trust someone you’ve only ever interacted with on the internet. With DAOs you don’t need to trust anyone else in the group, just the DAO’s code, which is 100% transparent and verifiable by anyone.
This opens up so many new opportunities for global collaboration and coordination.
“In a sense, a DAO functions similarly to a corporation, except it provides a new, democratic. Unlike a traditional organization, members of a DAO are bound together by a common goal or incentives written into their rules.”
DAOs related to NFT projects are useful to nurture strong relationships within the network and build a strong and motivated community.
Well, network marketing businesses integrating NFTs within their model already have all the network and community it takes to build a DAO by going straight to the NFT-memberships launch, with prices taken from the former starter packages. Such prices, to which the community is quite used, will provide for a stable floor price for the NFTs.
Decentralized governance is democratic in that voting rights are granted to the users holding the NFT-memberships, so only to those that put their resources at stake in the business.
When the network marketing business also presents a platform token, that can be tied to the NFTs very easily to enhance the ecosystem even more, paying out rewards and commissions in a cryptocurrency that can be directly spent in the platform or with partners.
About the author Eloisa Marchesoni
Eloisa Marchesoni is a Tokenomics Engineer focusing on token model architecture, token macro-/micro-economics structure, crypto market simulations and gamification strategies for Web3 businesses.
She is currently a partner to VCs and accelerators, while also working as an advisor to self-funded crypto startups, which she has been doing since 2018.
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