Why 2022 Will Be the Year of the DAOs

Too Long; Didn't Read

Decentralized autonomous organizations (DAOs) aren’t quite as popular as some other concepts in crypto. But, it appears that the guard might be changing and DAOs are about to take over. With the year now getting into full swing, investors are definitely looking for the next big trend. Could it be that we are in the age of DAO? Understanding the Concept of DAOs To be fair, DAOs are still a very new concept for companies. Essentially, a DAO is a company that runs on its own. Humans can manage some parts of it and ensure that it runs as it should, but the company itself operates autonomously. Today, most DAOs run on the blockchain. They are seen as the next phase of company organizations, with their activities entirely different from those of normal companies. So, why make your company a DAO? The vision is simple - by removing the human element in a company, you’re essentially setting it free to run as it should. DAO developers believe that they can eliminate human manipulation or error from how companies work. This way, decisions are geared towards profitability alone. Investors can send money to companies autonomously, and owners simply get tokens that allow them to vote in company decisions or possible projects. Everything is run free from human components, and efficiency can be optimized. Interestingly, the concept of the DAO has grown significantly over the past year. According to data from ConsenSys, DAOs surged significantly in 2021 and now have over a million members. Assets under management surged to $14 billion, with several top players in the DeFi space leading the charge.

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