To Realize Their Full Potential, DAOs Need to Evolve
Decentralised Autonomous Organizations (DAOs) have captured the attention of many inside and outside the cryptoverse. These revolutionary organisational structures are an ongoing experiment in collaborating, managing, and connecting around a shared vision or purpose. Though the concept of a collaboratively governed organisation has existed since the 1990s, the technological capability to bring these ideas into reality appeared only recently. With the emergence and development of blockchain technology, we now have the infrastructure required to get the vision to life. The potential impact of smart contract-based decision-making that DAOs facilitate has the potential to impact every industry and segment of the economy, leading many to believe that DAOs are the next stage of organisational evolution.
DAOs today are permissionless organisations, meaning they are unsuitable for some sectors and purposes. To realise the full potential of the blockchain ecosystem, DAOs need to continue evolution. We present a view of the next stage of evolution: the pDAO.
The Purpose Of Organizations
Organisations do not form without a purpose, for it is the purpose which binds the organisation's members together. The purpose of a profit-driven organisation, for example, is to create value for the shareholders through bringing a vision closer to reality in the pursuit of the mission. Other stakeholders such as management and employees who are part of the organisational structure also share in the value created. Social enterprises and non-profits, on the other hand, are on a mission to deliver a specific vision of social good.
How these organisations function will be dictated by the industry in which they operate, the mission they are trying to complete, and the founding team's vision. As such, all organisations, regardless of their industry or sector, share a common core trait: the purpose of delivering a specific vision tied to an overarching mission uniquely.
If an organisation is structured correctly for its given purpose, the mission will be successful, and the vision will become a reality.
