Julian Ivaldy

Web3 Company Creation: Introduction of DAOs

These past weeks, I have been meeting more and more people interested in web3. But most of them came to me with this question! What is a D.A.O? Whatever your degree of interest in web3 is, you must have heard this word somewhere a few times… And for cause, DAOs could become the cornerstone of the new era of decentralization suggested by blockchain-based innovations. So now let’s dive deeper into these Decentralized Autonomous Organisations! 

A DAO can be seen as an entity, an organization, or a community where the rules of governance are automated and written permanently in the blockchain. In other words, it’s an incorruptible organization with public rules, belonging to the people and governed by the people who helped create or finance it. Automated thanks to smart contracts, its governance can’t belong to any centralized entity or physical person which makes it secured, transparent, and fully decentralized. 

Not clear? Don’t worry we’ll use an example.

Within a few days, we’ll be launching Mobula, our decentralized data aggregator! As a reminder, it’s kind of a decentralized version of CoinMarketCap, which will enable you to list and gather data on any token in a decentralized way. This means that any member of our close community will be able to submit or verify new token listings and the data associated! The dApp will be governed by the community itself to choose which tokens can be listed or not on Mobula which will then automatically gather the necessary data using APIs. And guess what? To do this we’re using a… DAO! 

So why are DAOs so popular? 

This comes from the roots of web3 and the cultural movement going along… People want more power, more control, and more security. To these wills, blockchain brought decentralization: a concrete way to manage (mostly finances at first) without any centralized authority or the control of usual governments. That’s why you always hear about community power in web3 and all this stuff… The starting point for all this is the need for people to obtain more governance! To feel safe and engaged, to trust what they use and buy…

Just think of ancient Greek Democracy. Imagine you could be part of a community to contribute to the evolution of one of your favorite products… That your voice had the same importance as any over, whatever the people in the company… And that you could even vote to include/exclude other members from this community? That’s exactly what we propose with Mobula’s DAO! 

And if you understood this, you understood what governance is. Web3 for the people, controlled by the people! Any Mobula member will be able to govern in proportion to his $MOBL shares. This will allow voting, and create proposals about Mobula's evolution, that will be discussed and voted by the community. A second DAO, protocol-linked, will allow holders to vote for listing requests for new tokens on our data aggregator. To that extent, any decision surrounding Mobula will be taken after consulting the community. And guess what? Holders will be rewarded for their work when they are proven to be performing!

To join a DAO, one just needs to buy its native token, to acquire governance right on the project. As explained before, your authority (importance) in the decisions of the DAO is proportional to the number of tokens you own. Exactly like shares in a big company, you’ll also earn money if the token price increases. But contrary to a “classic” company, a DAO has no direction commission to ensure the decisions are correctly implemented. This is all ensured and automated by smart contracts, so it’s really important to check they were correctly written through audits for instance (hello Safetin 👋)... Uniswap, MakerDAO, and Aave are some famous DAO-based protocols. Even in such popular and big DAOs, everyone having a token can submit an anonymous proposal for the protocol. Governance by the people :)

But DAOs remain emerging applications of a concept forerunner… Especially since DAOs are directed by lines of code, they are still subject to complex security problems and cyberattacks. The open-source aspect can also be considered a problem since any progressing development of the company can be accessible by anyone. Hoping these issues will be brought to resolution, DAOs are still very promising since they could lead to solving all the problems of centralization that DeFi tries to escape. With Mobula for instance: vulnerability of centralized servers, uncertainty about data reliability, inaccessibility for on-chain applications... This is why the creation of a decentralized data aggregator seemed necessary. Collecting and processing data will be made by a united community, rewarded for its efficiency with our token $MOBL!

And if you’re now a big DAO fan, be ready for an exclusive interview next week about the first DAO implemented in a famous food concept store.


2022-05-04