DAO development history:
In September 2013, BM, the only technician in the world who has successively successfully developed three decentralized systems based on blockchain technology, proposed the concept of DAC, a decentralized autonomous company, which is considered to be the prototype of DAO.
With Buterin's detailed explanation of DAO in May 2014, the definition of DAO became clear for the first time and spread rapidly. In 2015, the ETH mainnet was officially launched, and the DAO combined with smart contracts has changed.
In August 2015, DASH DAO appeared, which is the first DAO with a clear decision-making mechanism. Since then, DAO has officially moved from a general concept to a concrete implementation.
Until May 2016, the ETH crowdfunding platform The DAO was launched, and the first DAO with Internet entity existence and financing purpose was born. At this time, the DAO also reached a peak of popularity. The DAO raised over 12 million ETH and was worth about 150 million US dollars.
However, in June 2016, The DAO smart contract vulnerability was hacked, which lost 3.6 million ETH market value of nearly 70 million US dollars, and eventually led to the ETH fork. This incident also silenced the DAO track market for a while.
In the sluggish market environment, a number of DAO platform projects developed during this period. In December 2017, Maker DAO was officially launched, which is the early representative of DeFi+DAO, a managed DAO platform; in February 2018, DAO Stack was released, which is a DAO platform that pays more attention to the decentralized decision-making mechanism.
Until February 2019, the application-based Moloch DAO was launched, providing community funds for ETH development through its minimalist mechanism and clear goals, allowing more people to easily and intuitively participate in the DAO governance mechanism, which is also financing Application DAO prototype.
After that, people regained their expectations for DAO. Since 2019, DAOs with different functions have gradually emerged: investment and financing, income, social, governance, NFT and media, etc. DAOs have also entered the current exploration period, with different purposes, application scenarios, and ecosystems. Explore the utility and value of DAOs.
It is today that the vigorous development of DAO will surely subvert the traditional organizational structure and promote the development of the blockchain-enabled real economy.
In December 2021, RCHDAO was officially established. It is the representative of REITs CHAIN's global asset digital ecological public chain community autonomy, investment and financing DAO and revenue DAO. It is a DAO organization dedicated to promoting the development of REITs CHAIN's global asset digital ecological public chain ecology. Asset digitization provides one-stop underlying network services.
The above is the historical development of DAO, so what is DAO?
DAO, also known as Decentralized Autonomous Organization, is an organization that is assembled for a certain purpose. It is encoded on the blockchain in the form of smart contracts, so that without centralized management and intervention, the organization can It can execute a series of rules by itself to complete management and operation.
Specifically, DAO is a brand-new company-like organization mechanism on the blockchain. This organization will algorithmize a series of public rules through open source code. After that, everyone can provide services or buy the organization. to become a participant in the organization. Based on open source algorithms, the things the organization wants to promote can be run by itself without human intervention and management, and participants will automatically receive dividends.
As an organizational structure and governance method, DAO is trying to solve the needs of fairness, transparency and efficiency in the distributed new economy. In order to achieve this goal, it is necessary to combine human choices, reasonable coordination and decision-making mechanisms, and automation mechanisms. Combined, it will develop towards more diverse scenarios, clearer identities, and higher participation. Then, in the future, there will be more in-depth theoretical research, a more reasonable incentive system, and a more distributed development direction, which will become an indispensable part of the Web3 system.