The Power of a Community

As history has taught us numerous times before, there's nothing more empowering than working within a community that shares your values and ideals. One of the reasons why communities are by far the best environments to grow and develop yourself and your future is that you get to continuously expand and learn from those around you, automatically ensuring a more stable, guaranteed success in everything you wish to achieve. If you are one of those people who constantly evolve and become the best version of themselves, you must try working within a community. It might prove to be life-changing.

Today we want to discuss great communities and organization models, and what better way to start than by presenting everything there is to know about DAO?
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From the start

Searching for an economic model that represents the future and is grounded in the real world, we discovered DAO, a model that The Coop Network is ultimately trying to achieve.

DAO—a Decentralized Autonomous Organization— is a self-running organization easily characterized by three pillar characteristics: transparency, democracy, and decentralization. It is also known as an emerging form of legal structure with no central governing body, which means that all its members share a common goal: to act in the entity's best interest. DAOs are generally used to make decisions in a bottom-up management approach.

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The purpose of the DAO

It was originally inspired by the decentralization of cryptocurrencies, and back in 2016, a group of developers had the bright idea of making a decentralized autonomous organization. The whole concept is to offer oversight and management to a group of business people, similar to a corporation. However, the key to a DAO is the need for a central authority, as the collective group of leaders and participants acts as a governing body.

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How does it work?

DAOs mainly rely on smart contracts. They are also known as logically coded agreements, which further dictate decision-making based on the hidden activity in a blockchain. For instance, depending on the outcome of a decision, some codes could be implemented to increase the circulating supply, burn a specific amount of reserve tokens, and issue select rewards to already existing token holders.

The whole voting process in a DAO organization is efficiently and rapidly posted on a blockchain, from which users usually select between mutually exclusive options. Voting power is generally distributed to users depending on how many tokens they hold. For example, one user who owns 100 tokens of the DAO might gain twice as much voting power as a user who owns only 50 tokens.

There's a philosophy behind this thinking based on the fact that if some users are more monetarily invested in the DAO, it automatically means they will have more reasons to act in good faith. Let's imagine a member owning 25% of the voting power. That member will be directly interested in raising any business's value and will act accordingly.

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The Benefits of a Decentralized Autonomous Organization

There are many reasons why a collective group of individuals should consider adhering to a DAO structure. I will enlist some of the reasons why the DAO structure is the best fit for any organization that aspires to have these principles:

• Decentralization: All the decisions that might impact the organization are completely made by a collection of individuals, compared to a central authority that their peers often outnumber. In this organizational scheme, power is decentralized across all users instead of being given to one individual (the CEO) or a Board of Directors.
•  Participation: Individuals within an entity with equal voting rights feel more connected to the community because they know they have a direct say and their voting power matters as much as anyone else's. Even if they don't have stronger voting power, this organization encourages token holders to cast new votes, burn tokens, or use them in various ways that might help the entity.
• Publicity: Votes are shown via blockchain in a public space, encouraging users to act as they see fit. This type of system motivates actions that benefit the voters' reputation but also discourages any acts against the community.
• Community: The concept of this type of organization is based on good principles, such as encouraging people worldwide to come together and build a single vision. It only takes a good internet connection to gather a community with members from all corners of the world and diverse viewpoints.

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Running a legal DAO structure means focusing on giving members full and transparent control. It also means creating a Governing Council as the main decision-making body, where every member is granted a vote. While the concept of "one member, one vote" was difficult to achieve in the past, as members had to gather in person, now everything is easier. Blockchain technology allows decision-making and voting from all over the world. Now, not only does distance not represent a problem, but it helps us gain access to different perspectives, and we all know that's what makes the perfect environment for great decisions.

To summarize, the principles of a DAO structure can be achieved only by a variety of individuals who collectively decide to act together as a single entity. Within such a community, individuals have a strong voice, especially regarding the entity's planning, strategy, and operations. 

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 And speaking of great communities, if you want to become a member of Coop Network, the first cooperative with digital membership in Romania, you can install the Coop Wallet App and get access to exclusive investment rounds where you can explore and learn more about current investment plans, develop your own winning strategy, and build a strong portfolio. Experience the true power of the community with us!

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References:

1. https://www.investopedia.com/tech/what-dao/

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