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DAO The Way Part 6



Here is DAO part 6. I drove myself into the rabbit hole and DAO seems like a huge effort of building and designing from scratch of economy, work, team, technology, management, and many more.


There is more to learn than to execute in DAO. Compared to traditional corporations, DAO can improve and become its own type of corporation structure in the future.

What to Focus

DAO is not a solution for all. However, before you dive into DAO, you want to set a clear expectation on what you want to build a team about and what value DAO can provide that traditional corporations cannot. Experience is one aspect to have a DAO to provide but if the value of DAO created is the same as a traditional practice, then DAO may not be necessary even though decentralization sounds wonderful.

Check out my another article Lessons Learned From Wonderland DAO

Design Value

In DAO, you are creating value. In a traditional business sense, value comes from customers. If customers want something, that is a valuable aspect business needs to focus on. DAO inclines toward the community. Customers are part of the organization. Therefore, DAO is creating value with an experience attached. You will design an experience that tailors down to community wants and needs. 

Define Value

In a traditional business sense, defining value comes from your product design process. Part of the input comes from customers and other parts of the input come from broader research. However, whoever had a management role decides on the final product outcome. 

In DAO, the value will constantly change based on the growth of the community. The top-down structure to define value will have a negative impact on community engagement. Every community member wants to say about the value and input their voice. Therefore, it is a crucial part to serve the community and get their input into value. It will become a core of the DAO and bond everyone to work together.


Defining what is valuable really helps to layout how to compensate your community members. Blur out value will make compensation harder to be fair. 

Discuss what you contribute

Before even entering into contributing your time, make sure to discuss with a core team or any lead in the community. Express what you can contribute and ask what they can compensate for. Many DAOs focus on asking members for contributions but lack a system on how to compensate their members. Here are three tiers of compensation that DAO can consider to separate their tasks on:

Contribute as self-inspiration

Community members can start their own tasks to contribute. Sharing news and information about the topic DAO focus can be the first step of contribution. 

Contribute as beneficial

Composing members’ thoughts and ideas to share in the community can be the next step of contribution. It is feedback on news or information. It starts the momentum of the conversation and possibly dives into a deeper question that DAO tries to solve.

Contribute as task

The answer to the question can become a solution that the community as a whole tries to resolve and accomplish. These then can become a task for members to go into depth research and create tools to resolve problems.

Contribute as feedback

The solution that community members provide may not be perfect at first. Feedback is necessary to continue improving the solution.

Level of Compensation

Once you come up with the level of contribution, you can compensate accordingly. There are many ways to compensate members from honorable title to monetary compensation. Many DAO is lack funding at the early stage, promised compensation may not retain members to contribute sustainably. Therefore, designing an economy to compensate members fairly is another challenge that DAO has to figure out even before recruiting members. 

Permission to Permissionless

At the beginning of DAO, the organization may run like a top-down structure due to core members recruiting and limited resources. However, you will need to transit the community into DAO and become a permissionless space for members to freely contribute. 

Management to Delegation

You manage DAO at the beginning of the stage because many members are still learning the space. Transition into delegation is a crucial success to becoming a DAO. Delegation is an art rather than a science for people to follow. However, the more delegation, the more efficient that DAO can operate by itself.

Right Information to Right Tools

To transition into a DAO, members will have the ability to use tools and complete tasks by themselves. Right information sharing is the first step. However, core members need to carry members out to use each tool and mentor them to accomplish their tasks.

Poor Insight to Metrics Driven

At the beginning of the DAO, it may be a poor insight. Once more data is collected and contributed, the organization will become more metrics-driven. Skill sets of members will become more concentrated and more specialized. Data will become a more critical part to gauge DAO into their specialty and narrow down their mission.

In Conclusion

There are many areas to focus on and to build because everything is open to discuss and experiment into. 

Stay tuned for the next article!

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Crypto News

How high leverage crypto lending market collapses



As the number of crypto lending projects increases, the demand for high-quality banks in this space has also increased. However, the current market is in a tailspin and not much can be done about it. Like other asset markets, such as stock and bond trading or real estate development, the crypto lending market faces multiple headwinds: low-interest rates, rising competition, and regulatory uncertainty. Traditional lenders are unwilling to offer crypto loans at competitive rates or as a package deal. Even if they did deliver it at competitive rates, many others would reject it out of hand. This leaves traditional financial institutions as the only alternative left. To avoid becoming an antiquated sector that cannot support itself, we need more than just more conventional lenders. There needs to be a higher level of leverage on offer so that creative digital assets can become its main attraction instead of simply being another commodity – another loan option. Lenders with leveraged portfolios are necessary even if they do not have the best business practices (e.g., investment vehicles). Weakening the competition will only make things harder for traditional players who have grown accustomed to buying their way into certain industries (e.g., oil) or using other conventional means to reach their goals (e.g., banking).

What is the current crypto lending market worth?

There are over 1,000 crypto lending projects in the market. Some of them have raised more money than others and it is not unusual for projects to generate more than the sum of their (usually smaller) parts. However, the total number of lenders in the market would not be significant without the adoption of blockchain and the payment network it creates. However, the market suddenly collapses in early 2022 due to the market downturn. It makes many people wonder why the market is so fragile. 

The demand for high quality digital banks

New digital banks are opening their doors worldwide and offering loans to customers in various forms. Some common forms of lending include cash-out refinance, termite and mortgage loan, and money market funds. Other assets usually secure these loans rather than security-rated assets. They may offer higher interest payments but the risk of default is also very high.

How big of an impact will the current market have on business confidence?

The amount of money raised through these projects can greatly affect a lender’s business. If the number of lenders increases and the number of projects increases, then the number of do-it-your-self (DIY) loans will increase as well. However, the most significant impact will be on the confidence of the banks in the industry. This will have a dramatic and far-reaching impact on the entire commodities and financial services industry. There will be a loss of vendor relationships, reduced transparency, and a decline in investment confidence in banks. These will hurt all parties, from the lender company to the government. One example is the lending company Vauld. Unlike traditional lending services, crypto lending solely depends on the algorithm to determine the opportunities. It works when the market goes up but it does not work when the market goes down. When valuation goes up, the interest payments are worth less than the company holds. However, the interest payment is worth more than the company has when the market goes down. He suddenly reversed the market, putting the company out of business immediately.

What is next for crypto lending in terms of transparency and regulation?

The crypto lending market is small and has little industry publicity, meaning there is not much regulation or regulation-like regulation that could be applied. However, it would be wise to consider this market a low-hanging fruit, as most regulatory and legal developments occur very slowly in a sector that experiences massive fluctuations in demand and supply.

Bottom line

The demand for high-quality banks in this market is very large. There will be no significant movement in the market with the advent of decentralized, blockchain-based ledgers. And with the advent of more blockchain-based assets, demand for high-quality banks will continue to grow. However, a major event like a government ban on virtual currency will spark a meaningful change in the market. There is little chance of this happening soon. With so much disruption and uncertainty in this sector, it is unrealistic to predict the future of bankine. But one thing is for sure: the use of blockchain in banking will become more common, if not inevitable, in the near future.

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Photo by Jason Pofahl on Unsplash

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Crypto News

We are in a recession, no doubt?!



Are we in a recession? Well, it depends on who you are talking to.

The traditional view is when there are two consecutive quarters of decline in a country’s real gross domestic product is commonly used as a practical definition of a recession.

But, the definition of a recession has started changing.

Nowadays, we cannot agree on the definition anymore. Everything is open and up to debate.

All indicators show that we are heading or have already in a recession.

From the government bailout companies to not allowing a recession anymore in the economy, where are we heading if there is no clear guidance on the economy from the government?

So, we are technically in a recession, but we are not in a recession.

And we are heading into an even worse economic cycle:

But that is okay, and we can redefine everything from now on.

Here is the question about a recession, is a recession man-made or a natural process?

If a recession is caused by humans and is a man-made event, the government has the right to change the definition. Since the government has been created collectively to represent the majority of the people in the nation, they have a right as a creator of the collective force to change the definition of the recession.

What if a recession is a part of nature?

Then refusing a recession is a violation of natural law.

I think a recession is man-made, and it is okay for the government to change the definition if they want to. They have to convince citizens that the change is acceptable. 

So, we are in a recession according to the traditional definition, but we may not yet be in the recession if the broader definition claims “a significant decline in economic activity that is spread across the economy and that lasts more than a few months.”

At the end of the day, it becomes a political debate that does not affect people’s daily lives.

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Photo by Annie Spratt on Unsplash

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Crypto News

The Froots Are Here and Moving Fast



froots solana nft

I was surfing through transactions on the Solana blockchain yesterday, and I noticed a large volume moving on Froots NFTs and decided to check things out.

Froots NFTs sold out fast, and the floor started running up. The mint price started at 2.75 Sol on July 21st. When I saw the project and could get in yesterday, the floor was sitting at 4. Last night and today, the Floor has been floating around 5.5 to 6.5.

solana froots nfts

What are Froots?

Froots is a collection of 7,777 fruit NFTs.

Froots, also known as ‘The Vibers of Solana’ is a community driven project of cute froots that aims to spread good vibes and provide its holders with great opportunities, through their different ventures. With Froots, we want to experiment and set a precedent for what can be done between Web2, IRL businesses and Web3. While our main goal is to develop multiple subsidiaries in various industries ranging from F&B, Merch, Books,etc… We will always put our community first and make sure that we’re always innovating and keeping it fun.


Let’s Breakdown the Froots NFT Project

The project appears to be a fast-release project. A short roadmap section briefly discovers the project and utilities of the NFTs. Froots announced that only 3 of the 6 NFT utilities had been released the other 3 are still a surprise.

What is Driving the Popularity?

It’s all about the community. The Froots has a fantastic community helping to push this project to the top of Solana.

The Road Map

Froots is a multi-venture brand where holders of the genesis NFT collection will be benefiting from each ventures of the Froots umbrella, through our rev-share program. The first subsidiary will be a juices/smoothies company, and the 2nd one is a merch service venture to help projects develop high quality merch that suits their needs and brand image. We have a lot more in stock but we’d rather overdeliver than overpromise, however we can tell you that the future of Froots will include: Merch, 1/1 Charity Auctions, Web 2 + Web 3 partnerships, Lore related projects, Cute art… and VIBES!

Suggested Read: The Art Collective Multichain DAO by Metazens – Cryptobite

My Thoughts On Froots NFT Solana Project

I had to jump in on the rise up and make a little profit at least. I love the idea behind it and am curious to see what the other utilities will be. I will also hold at least one just to see where the project goes. They make some cool PFPs for Social Media when all else fails.

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