What is DAO and why does MetaPax choose it?
The acronym “DAO” stands for “Decentralized Autonomous Organization”. It is controlled by smart contracts and there is no traditional hierarchy.
The basis of DAO is decentralization. Beginning of the DAO journey can be considered 2013. The primary idea according to the community was:
- Autonomization of companies;
- Tokenization of assets;
- Open source for transparent operations.
In other words, it is an application deployed on top of an existing network. Blockchain plays a crucial role here. Also, blockchain technology serves as the basis of DAO data control schematics. After all, the mechanism of decentralization lies exactly in that technology. It automatically makes DAO one of the pillars of the implemented Web 3.0 concept.
Functioning principle of DAO
DAO is clearly structured, combining a set of specific rules written in code. The entire execution functionality relies on smart contracts, giving users a truly transparent management mechanism.
All DAO users operate in an appropriate corporate ethic. Basically, community members fall into 2 main categories:
- Members with tokens;
- Members with stocks.
The working principle is approximately as follows. There was a need to make a decision on a contrarian issue. So, members of the DAO model choose options using tokens. The same tokens represent the votes of the voting members.
Token holders and project owners can propose and propose changes to the project, which are accepted through token votes. Each holder can vote with tokens to accept or not accept the proposal. Tokens don’t disappear, but remain with the holders. The option with highest volume of tokens wins.
Perhaps the most important advantage of DAO is that it is devoid of specific psychological aspects during certain procedures of community participants. Such can be referred to as the «factor of distrust» between users.
In DAO that factor is automatically eliminated, because the participants perform actions on a transparent system and do not know each other.
It is also worth emphasizing the vastness of the DAO concept. Anyone who has access to the Internet can participate in project activities, simply by purchasing tokens of a particular platform.
And of course, we must not forget about the lack of hierarchy. Here everyone is equal, which means that decision-making will be based on democracies and will not be subject to discussion.
The role of DAO in MetaPax
The concept-model DAO is important for MetaPax. Because the functionality of such technology is consistent with the ideas of the MetaPax project.
MetaPax is a new generation streaming platform, building a bridge between real and virtual worlds. Interaction takes place via smart glasses and streaming.
Since the platform is built on a clever ecosystem and has tokenization, it is fully in line with the DAO concept and strives to adopt the best of this technology, giving its users a truly democratic environment to realize their opportunities.