DAOs as a tool for Web3 mass adoption

AOs as a tool for Web3 mass adoption

The development of blockchain technology has introduced the term Web3. While many disagree on what Web3 actually is, or whether we are in Web3 or still roaming in Web 2.5, we can confidently say that Web3 is a step ahead of the Web2 environment. Web2 is strongly influenced by centralized entities that control what should and should not be permitted. Web3 is a change of this mindset by empowering decentralization.?

Rather than being controlled by centralized big technology companies, Web3 is built, operated, and owned by its users. However, still in its nascent form, Web3 has not yet become as popular as Web2. We are at the commencement of the Web3 revolution, and mass adoption is yet to come.?

However, owing to the increasing popularity of cryptocurrencies and NFTs, many famous brands like Starbucks and Tiffany & Co. have stepped into the Web3 world by introducing their own NFTs, generating a tremendous amount of interest.?As a result, people who may not have heard of NFTs have become intrigued by them.?

The issue, however, is that such brands are highly centralized corporations with values opposite to the basic fundamentals of Web3. These brands do not usually focus on the industry and its development but rather see it as a way to expand their brand and add an additional source of revenue. The motivation is money, not growth and development, with the mindset that the user is a tool to make a profit. This is unlike the basic structure of Web3, which is decentralization and a user-oriented platform.?

Regardless of their centralized systems, the inclusion of big brands in Web3 is also a positive step towards adoption because it shows that it’s a new thing, a new thing you can trust. Unconsciously we assume that big brands wouldn’t risk their money and brand by promoting something scammy. While these brands do not focus on enabling decentralization and growth, they focus on making business and bringing people.??

Let us take the example of Meta. Meta, the ‘new’ Facebook, is a good example of a big company entering the Web3 world. According to Mark Zuckerberg:

"The metaverse is the next frontier in connecting people, just like social networking was when we got started."

Meta's metaverse aims to be a virtual world easily accessible from multiple smart devices to increase and intensify "engagement". This is a crucial objective for tech companies whose revenues derive from digital commerce and advertising.

An in-depth look at Meta confirms it is a highly centralized organization. Also, let us not forget that one of the reasons for rebranding Facebook to Meta allegedly stems from Facebook's data leak to Cambridge Analytica and the subsequent disclosures made by Frances Haugen, who worked at Facebook for two years. Facebook was found to have violated many users' privacy and failed to comply with data protection laws.?

The irony is not wasted here - while blockchain is all about anonymity and privacy, Facebook/Meta, violated the basic fundamentals of privacy and human rights. The rebrand was probably a way to present itself as a new, different entity aiming to win the confidence back of its users by focusing on developing new technology.?

Another relevant instance here is Tiffany & Co.'s NFTs. When we talk about the NFTs launched by Tiffany & Co., regardless of their high price, the company managed to sell all of its 250 NFTs instantly. Priced at 30 ETH each (around $50k), the NFT collection raised about $12.5 million. At the time of launch, many speculated that people might not buy the NFTs owing to the high price of each NFT. Yet, the collection was sold out in 20 mins. Despite the skepticism, this shows that every product has a buyer. However, this successful sale was followed by several online dissensions regarding the terms and conditions attached to the NFT. The terms were ambiguous and did not rightfully entitle the holder to the Intellectual property rights in the NFT.?

The terms stated: “By purchasing an NFTiff and linking it to your CryptoPunk, you grant Tiffany and Company, its affiliates, agents, and others working for it or on its behalf an irrevocable, nonexclusive, royalty-free license to use your CryptoPunk and its underlying intellectual property, if any, to design, manufacture and sell the corresponding pendant, including any and other Intellectual Property Rights.”

The terms were worded such that it can be perceptive that Tiffany & Co. will assume the rights of every CryptoPunk holder who purchases the NFT. However, it was met with quite the backlash, and consequently, the brand updated the provision to remove “any and other Intellectual Property Rights.”

Through brands such as Meta, Tiffany & Co. and Starbucks, the industry can attract more people and get them involved. This involvement can be good for the industry as we can hope that the people that do get involved will get curious about the industry enough to continue exploring and learning. Increased curiosity about Web3 can, in turn, drive greater mainstream adoption.?

What are the essential tools for driving mass adoption?

The answer to this big question is straightforward - COMMUNITY.?

A crucial component of Web3 is the community. The community practically operates the Web3 industry.?

The community is a big part of the Web2 world as well. However, Web2's community is considered as customers, clients, or buyers. The industry is ruled by big centralized corporations, while the community is seen as consumers of a product or service.?

In Web3, however, the users are not clients or customers. Instead, they are the drivers of the industry. Hence, the best tool to drive the mass adoption of Web3 is precisely the community!

DAOs as a tool for Web3 adoption

As the main driver of the industry and its mass adoption, the community requires a particular structure that keeps them organized. We know those structures as DAOs, also known as decentralized autonomous organizations. Here, the community holds the power, in contrast to central authorities in traditional organizations.

The structure of DAOs allows people to coordinate and govern themselves through smart contracts. They can put forward and vote on proposals and have a say in the organization's management. Thus, power is given back to the people, while the central concept is freedom.

DAOs are very novel structures that are yet to be explored and understood. Many DAO critics claim these organizations are too flawed and dysfunctional. I would rather argue that they are too young to be well structured and implemented. Existing DAO issues stem from founders and members who do not have a good understanding of how DAOs operate.?

Overall, the community has shifted much of its focus towards education and building products that matter. I must say that this is a huge step forward to understanding and working in this environment.

I started working from home in 2016. At that time and in later years, many were puzzled by the thought that working online from home was possible and did not entail a webcam job. But then the pandemic hit and got the world locked inside their houses. Hence, many had to start working from home.?

Fast forward two years later, people now quit their jobs if at least a hybrid working option is not on the table. Many C-level executives from major companies have left their jobs after being compelled to work from the office. Some companies remained adamant regarding work from office policy, while others adjusted and allowed their employees to work from home or offered at least a hybrid option, fearing that great employees would leave.

This only proves the power of the community. Change can be frightening. Nonetheless, it can be for the overall good. Mass adoption can only happen through the community when people understand their own true power and the potential of decentralization.?

The Utopian feeling is that decentralization brings a high level of freedom, including financial independence and freedom of movement. The concept does not recognize citizenship, religion, skin color, or gender. The only things that matter are skills, knowledge, where your creativity lies, and what you can build.

The fact is that the biggest asset of an industry is talent, and in a decentralized environment, the focus point is the people and their talent.?

Once the talent learns that this industry is a place to reach its potential, it will be a game-changing moment for both because the skilled and the talented will want to be there where they can create uninterrupted.?

We have established that community is a significant component of the Web3 space and is a valuable tool in driving the mass adoption of Web3. DAOs, as a community-first system, can launch an increased adoption of Web3 through its ideals of collective ownership and anonymity (pseudonymity, in fact). Furthermore, through its use in blockchain technology, DAOs have a beneficial relationship with cryptocurrencies and NFTs – two popular spaces in the Web3 industry.

DAO community members can facilitate the growth and adoption of Web3 through cryptocurrencies. Projects that are the basis for forming DAOs like investments, venture capital, and charitable organizations use cryptocurrencies to meet the goals of their DAO. A DAO’s native crypto also makes up its in-built treasury. Similarly, cryptocurrencies act as governance tokens that allow members to vote and participate in all major decisions concerning the DAO. With the increased recognition of DAOs, the adoption of cryptocurrencies is also on the rise, and in the same vein, Web3.?

NFTs are another frontier that can be the basis for DAOs for the mass adoption of Web3. Not many people have access to the funds required to purchase NFTs. This is where DAOs come in. By pulling resources from different people, a DAO can allow its members to own an NFT collectively. When the price of such NFT rises, sales can be made and the profits shared between members. One example is the purchase of the original Doge meme for $4 million by PleasrDAO.

Lastly, DAOs operate without barriers. This means they are trustless, and several people from different parts of the world can come together, create their guiding rules and launch a DAO. In this way, DAOs drive the spread of Web3 to parts of the globe that would otherwise not have access to Web3 technology.?

There are many more use cases for how DAOs can drive Web3 mass adoption. The world is gradually accepting Web3 and the disruptive technologies that come with it. Although we are at the commencement of the Web3 revolution, mass adoption is still necessary to solidify its existence.