How The Average Person Can Create A DAO On The EOS Blockchain Using Onessus
One of the use cases we are most excited about that the economic engine brings is the ability for the layman to easily create their own DAOs using our platform. For the first time in cryptocurrency history, users will be able to leverage customizable smart contracts opening limitless opportunity. For the purpose of this blog however, we will be covering just a single theoretical example of how a user created DAO would operate. For this blog we are assuming you already have a basic understanding of the economic engine. If you don’t, feel free to check out our introduction blog here.
What is a DAO?
“A decentralized autonomous organization, or a DAO, an idea that swirled through the community not long after bitcoin was released in 2009. The thought is that if bitcoin can do away with financial middlemen, then maybe companies and other organizations can one day operate without hierarchical management.
In short, DAOs aim to hard-code certain rules that a company would from the get-go. This could be setting aside a certain percentage of earnings for a cause or determining a process by which such a rule could be changed.
In the abstract, this is similar to how a normal company works. The big difference is that the rules of normal companies are not enforced digitally.” — Coindesk
For this example, let’s say a group of 5 strangers from different parts of the world all share a goal to start a restaurant franchise. This group would be able to find each other within our platform, and partner up to open up a restaurant franchise together without having to trust one another. There are multiple elements in this scenario that need to be agreed upon by our group for this specific example. Our group will be able to vote and agree on any dynamics of how the organization will work, and these dynamics will be enforced by escrow agents and our smart contracts. The dynamics voted on in this scenario would include, initial investment, equity splits, hire/fire threshold, commission for employees, budget allocation.
Let’s say our group has funding to start this business, but none of them want to take part in physical labor so all of work will be outsourced. All of the work, and transactions for this business will be done within the economic engine for optimal transparency between our group members. The allocated budget for our group will go towards buying a restaurant location, buying a supply of food and equipment, marketing, branding, & hiring the necessary employees to manage everything on location. Since The Onessus Void Market is a no limit marketplace, all of the expenses above can be found and paid for within our platform.
Transactions using the organization’s budget must be agreed upon by everyone in the group. Board members within the organizations can make proposals for rules and budget spend, but ultimately it will be the group vote as a whole that decides.
Each employee hired by our group will be a member within the organization smart contract, and automatically receive commission after each sale is finalized. For our example, let’s say our group wants to create an autonomous firing mechanism, to remove low output employees without hassle. They could vote on a monthly quota that each employee has to meet or the system will automatically remove them from the organization. On the other hand the organization could also find trusted users within the marketplace to handle human resourcing, and propose great employees nearby the restaurant location.
Now our group has a successful restaurant, and is ready to expand. They find an investor on the platform that wants to fund 2 more new locations. This investor now becomes an equity holder within the organization, and may also be given voting rights as well. They continue expanding and building the organization, and hopefully by the year 2050 the restaurant franchise will have implemented new advanced blockchain linked AI cashiers and chefs to completely autonomize the business!
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