The creation of Bitcoin in 2008 marked the emergence of a financial revolution. Previously, finance and the economy were controlled by Governments and central banks; these bodies had the sole power of financial control and monetary circulation; hence, their actions determined the course of the global economy. Unfortunately, the irresponsibility of Governments has seen the world suffer recessions, and great economies have crumbled.
Satoshi Nakamoto created Bitcoin to genuinely create democracy in the world, fostering true “power to the people.” Governments and Central Banks are notorious for causing economic meltdown via the decisions of a few people in power. However, Bitcoin and Blockchain Technology provide a way for Decentralization, allowing everyone to be involved, and taking away power from the midst of a select few. It is often said that “He who controls your money controls your world,” but the birth of Blockchain has changed this; we are no longer at the mercy of centralized authorities, power is decentralized, and we all have a say.
Over the past decade, blockchain technology has grown massively, branching into many parts, redefining human development and the future of our world. Away from financial applications, blockchain technology has also changed the outlook of organizational forms, particularly since Decentralization is one of the Blockchain’s core principles.
DAO (Decentralized Autonomous Organization) has grown to become the preferred form of Governance for vital decision-making in most blockchain projects, and rightly so. If the technology behind confirming transactions is decentralized, it is only fitting that critical decision-making is also decentralized. Centralized Organizations suffer from a lack of trust because few decision-makers can act to the detriment of others via poor decisions; Decentralized Governance facilitates genuine consensus, ensuring that everybody has a say in decision making, from top to bottom.
An organization is a collection of people who gather together to achieve a joint goal. Every organization comprises four elements: people, system, motivation, and affairs.
In a Centralized Organization, people are arranged in a hierarchy, where some are more powerful than others; hence, opinions carry varying weights. The system involves leaders and followers, where the top guns run the organization, and the people at the bottom of the food chain only follow their lead. Usually, the organization’s affairs are handled by the leaders, while the motivation is fuelled by the wishes of the Organizational leaders.
The semantics are different art Decentralized organizations. In a Decentralized organization, people are free to join as long as they fulfill a jointly predetermined criterion; these people are seen as equals, and the system ensures that decision-making is adopted in equality, carefully weighing the input of every member of the organization. The affairs are handled in line with the consensus demands of the majority, and they are all equally motivated to fulfill a duty.
With the help of blockchain technology, a decentralized organization is free from corrupt human interference, enabling autonomy, and avoiding scenarios of empowering a select few. DAOs favor democratic Governance and promote diversity in the organization with openness and transparency for all. Members are equally incentivized and motivated to make crucial decisions from an unselfish standpoint. Excluding human interference to fully practice democracy among multitudes is not only needed for blockchain projects but also for open-source organizations, corporate bodies, and social communities. It is expected that Decentralized organizations will continue to co-exist with centralized organizations within the next decade, growing with the influence of Blockchain until it can completely replace centralized organizations and Governance.
Although we expect the future of organizations and Governance to become decentralized, DAOs are still relatively unpopular, especially for people who aren’t invested in blockchain/crypto projects. As a result, DAO solutions are fragmented and underdeveloped, lacking tools for a proper industry breakthrough. Currently, some DAO solutions, like MakerDAO and TheLAO, have launched on the Blockchain with their own governance schemes and systems. For example, TheLAO has developed a voting contract directly on Ether to vote on investment projects.
Some other DAO projects like Aragon and DAOHaus have also developed basic DAO governance toolchains, which abstract the typical functions of the DAO governance process and provide functions such as voting and fund pool management. DAOHaus particularly provides functional contracts for voting and fund management on Ether, as well as an attractive front end and other tools to help DAOs with Governance.
Despite a few solutions here and there, developing individual DAO governance tools is not financially feasible for all organizations; only those organizations with sufficient R&D funds or initial capital reserves can afford to do so. Hence, smaller organizations or those without capital reserves are left hanging. It is also worth mentioning that most DAOs who have existing toolchains and systems for Governance can only meet the most basic needs of Governance, i.e., voting and fund management. However, they are unable to fulfill other advanced needs, such as the combination of multiple decision-making forms, automated execution of governance behaviors, daily community governance communication, and many more. Moreover, even the few systems with open interfaces to customize needs have incredibly high technical requirements, making it nearly impossible for small and medium-sized organizations to work with.
The struggles of implementing the much-needed DAOs leave the entire ecosystem begging for a solution, and that is why SubDAO was founded.
Our vision at SubDAO is for DAOs of any size to have the ability to boast of a rich and complete DAO governance toolchain with easy-to-use, friendly, peripheral tools, enabling decentralized Governance for every industry sector. We aim to integrate DAO governance into every aspect of life, to facilitate a leveled-playing ground, eliminate oppression by a few influential people, remove the shackles of class from everyone, and promote freedom, allowing everyone to express their opinions freely, making them count, and promoting TRUE DEMOCRACY!