As decentralized autonomous organizations (DAOs) continue to gain steam around the world, numerous use cases for these organizations also continue to emerge. Last time, we examined DAOs that are run as investment vehicles. This time, we will share all about operation DAOs that are completely reinventing the wheel when it comes to running projects — or companies.
In the Web 2.0 world, when you want to build a social media like Facebook, a matching platform like Airbnb, a game studio like Epic Games, or a P2P lending platform like LendingClub, you usually start by registering through a corporation. Your team is then built using the revenue or the capital raised by using equity and debt. Stock options are provided as incentives, but only to certain key employees.
In the Web 3.0 ecosystem, however, you are able to create a new token to be distributed to every contributor and/or patron for their contribution. Through this ecosystem, raising funds by using tokens from private and public markets is made possible.