By the end of the decade, we will see the rise of the DAO. That is a prediction I feel very safe in making.
Will it be the immediate end to the corporation? This is not likely. Instead, as with much we see in the financial and monetary world, there will be a hybrid system. However, as we proceed through the 2030s, the idea of a corporation, for major businesses, will be obsolete.
How can this be? If we analyze what corporations do and why these exist, we can easily see what part decentralized autonomous organizations (DAOs) play. In fact, it will be accelerated by AI and robotics, especially as it pertains to agents.
I already put out there that we are going to see the death of the website. With an agentic internet, there is no need for those. Webpages are designed to provide humans with information. Computers do not require them. Instead, agents will be what sends and receives what is needed.
The Rise of the DAO and End of Corporation
The DAO is the business model for the future. It is in alignment with creative destruction, something that occurs naturally with technology. We can sum it up with "out with the old, in with the new".
Why is the corporation iin jeopardy of creative destruction? It is mind blowing for people to consider since it has been with us for a couple hundred years.
To analyze this, let us look at what a corporation does. We will leave aside the legal factors since they can vary. However, the basic function of a corporation is to organize labor and capital. These are two subjects we discussed at length.
As regular readers know, this is changing greatly. Our entire economic system will transform due to automation. If the corporation organizes labor and capital, what happens when labor is removed? This is a question we covered when focusing upon income.
That said, it is also applicable to the corporation. Here we are left with the need to deploy capital. Certainly, corporations could do this yet, why is it i needed? Under this scenario, anyone can fulfill this role.
Actually, a more accurate way to state that is anything can fill that role.
Automated Companies
A DAO is essentially an automated company. The deployment of capital can be handled through the use of blockchain, digital wallets, and cryptocurrency. AI agents are a concept that should make it easy to understand.
For the moment, we see companies such as Salesforce seeking to deploy hundreds of millions of agents. This is feeding the same trough. Over time, we will see this change.
What happens when individuals can create and utilize thousands of agents? When this happens, we are looking at individuals effectively having thousands of businesses.
Here is where the DAO enters.
Of course, they might not be fully owned by one person. Tokenization allows for fast, simple, and trackable ownership in a fractionalized manner. It is at this point that individuals become investors. In other words, they start to deploy capital in ways that can facilitate economic output.
AGI and robotics are going to bring this about. Corporations will be obsolete since the deployment of capital, the remaining feature, will be automated to a large degree. DAOs autonomously provide services, for which they are paid using crypto. This is also done primarily with humans absent. Proceeds can then be distributed to token holders based upon coded edicts of the DAO.
Going one step further, when the coins reach an individuals wallet, redeployment can be automated also, with an agent handling that.
In Conclusion
The DAO will eventually replace the corporation as the primary business unit. Tokenization is inevitable especially with the infrastucture that is under construction.
We can see the important of blockchain and cryptocurrency. Automation is the future standard. This will, obviously, bring a host of issues for society to deal with. One thing that is not a problem is the move towards abundance.
It is a ncessary step as the foundation of our economy will change completely. With a digital basis, we start to see how network effects start to take over. Concepts such as going viral will be the marketing terms. Creative destruction will be massive, especially as older generations die off, leaving larger portions of the population accustomed to change.
In 20 years, a lot of what we see and do today will be prepousterous. This will be akin to building a house with no power tools, using horses and mules to lift things with rope.
The pace of change is causing a compression in terms of the impact upon society.
Posted Using INLEO
Have you ever participated in a DAO, e.g. an NFT or DeFi project on Ethereum using Discord for internal discussion? I don't think anyone who has that experience would expect DAOs to be competent enough to replace corporations.
They will, but as large cooperatives the way of doing work and the way hiring and jobs are granted will change...
DAOs may offer a new and flexible model for organizations that do not require a traditional administrative structure or large offices.
But the question is: How will societies address the social and economic challenges resulting from this transformation?
Where should an individual start if he wants to organize a DAO business model?
Your family
DAOs have already started transforming companies into cooperatives....
Congratulations @taskmaster4450! You have completed the following achievement on the Hive blockchain And have been rewarded with New badge(s)
Your next target is to reach 590000 upvotes.
You can view your badges on your board and compare yourself to others in the Ranking
If you no longer want to receive notifications, reply to this comment with the word
STOPCheck out our last posts:
This is like a prophecy that will not take long to come to pass. The part where you said website searches won't be needed very soon is spot on and we are already seeing it play out.