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DAO The Way Part 3

In part 3, I will go deeper into each spectrum of DAO and identify their structure and how such structure will impact their operations and collaboration during their DAOing. 

TL;DR

I examined 5 possible ways that DAO can work within the entity or become an entity.

Data Layer

There are three layers for an entity to interact as a DAO. The social layer is for the community to build and collaborate. The data layer is where the communication conveys and translates. The technology layer is a blockchain to either convert work into tokenomic and create an implementation of consensus to allow community members to vote. When each entity tries to implement DAO into its organizational structure, they want to have a method to convey data from the social layer to the technology layer and vice versa. 

In Web2, the data layer is only conveyed between the social layer to the technology layer. Social media collects data and feeds it into the technology layer. The technology layer will produce a new data layer as feedback to influence the social layer. Users then will make decisions based on the feedback the technology provided. But we know a problem: when Web2 companies control the technology, the feedback data provided to users are alternated to benefit from Web2 companies’ favor.

Web3 has a bit of a different structure of communication. Data has its own layer to be verified and be stored from the blockchain. Each layer has a feedback loop to each other to make sure trust has been established and no single layer can dominate the other two layers.

DAO Structure

Because of the way Web3 changed the data layer, entity structure will change to fit into DAO or become DAO.

Corporation

The corporation is not DAO. Therefore, we will skip this from our discussion. It is possible DAO may grow inside of the corporation, but then it will become QQC or QQO.

Quasi-decentralized Quasi-autonomous Community (QQC)

In QQC, DAO is a Product-driven Community. The entity operates with its own rules as a corporation. It needs a DAO to build up its community to support its products. Employees from the entity who will control the communication in DAO and executives are rarely directly involved in the community engagement. 

Quasi-decentralized Quasi-autonomous Organism (QQO)

In QQO, DAO is a Branding-driven Community. The entity overlaps with the DAO community. However, the community only works as their branding ambassadors to promote the entity and their narratives are controlled by the entity.

Quasi-decentralized Autonomous Community (QAC)

In QAC, DAO is a Building-driven Community. The entity still controls its own operation and resources. However, the community starts gaining autonomy and building its own social norms that are relevant to the entity.

Decentralized Quasi-autonomous Community (DQC)

In DQC, DAO is a Working-driven Community. DAO is part of the entity. Although there is still a top-down command to influence DAO, DAO has decentralized some of the entity’s operations.

Decentralized Quasi-autonomous Organism (DQO)

In DQC, DAO is an Entrepreneur-driven Community. The entity is a part of the DAO to control the decision. However, the rest of the operation is in DAO and grows by itself. 

Decentralized Autonomous Organism (DAO)

Eventually, DAO is a Unified Entrepreneur Community to work toward the same goal. DAO is the entity and everyone works together to achieve the ultimate goal. There is no position or title to nominate based on the power and control of resources. Everyone is working equally and has the same resources to lead a team.

Check out my another article DAO The Way Part 2

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In Conclusion

DAO structure varies based on how entities integrate DAO into their structure.

Stay tuned for this series.

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