DAOs as Economic Engines
DAOs as Economic Engines
DAOs are tokenized communities with a common goal. Capital is a tool for incentivizing production and output. Combine these two and DAOs begin to look more like economies than companies.
TL;DR
As DAOs become more sophisticated, we’ll see them evolve into economic engines. Autonomous working groups (guilds, projects, committees) within the DAO will exchange tokens for goods and services in order to execute.
DAOs will adopt economic frameworks organically, as capital flows move from a centralized core of decision-makers (eg. Grants Committee) to the autonomous working groups on the peripheries.
Centralized to Decentralized Capital Flows (each line represents flows) When autonomous working groups are given a pool of capital to use at their discretion, they will begin to standardize around rates for work to better budget and predict expenses, inevitably kickstarting an internal economy.
DAOs as economic engines will create resilient economic systems, multiply the economic impact of capital, and empower creators to build self-sustaining initiatives that can properly compensate for their work.
