The concept of DAOs has recently been increasing and the JOKE DAO seems to be making a good case out of it. DAOs have continually been in the increase and as we study this amazing project, a clearer understanding of what a Dao is would make all the difference.
A concept of a vending machine will be used to demonstrate how a DAO works; a vending machine is an automated machine that offers a variety of things to customers, such as snacks, beverages, pizzas, cupcakes, newspapers, and tickets and the machine gives users a product based on the quantity of money they put in and the product they choose. They are self-contained units that run 24 hours a day, seven days a week, and require a normal power supply to operate. They are made up of simple electromechanical technologies that assist in automating the vending process. In a nutshell, its primary purpose is to provide users with a varied choice of products at any time.
What is a DAO?
A decentralized autonomous organization, or DAO, is a group of people who have agreed to work together to achieve a common purpose with consensus agreements made on the blockchain. It can range from collecting rare NFTs to making stock market predictions and it usually has the goal of raising funds for a specific cause.
Last year, the ConstitutionDAO, a group of 17,000 people, raised more than $40 million to bid for an early copy of the United States Constitution. Although they were outbid by hedge fund billionaire Kenneth Griffin, the move demonstrated the power of a DAO.
What makes a DAO different?
In two major respects, a DAO differs from standard corporate arrangements. To begin with, DAOs are entirely virtual, with members rarely, if ever, engaging in person. Second, they follow rules and standards based on blockchain technology, which is a permanent record of digital information that is not controlled or maintained by any central authority and works as a digital ledger.
A DAO’s members share the same goal, but the group is not led by a single person. Instead of a single figurehead, decisions are decided collectively, with input from the community, hence the “decentralized” aspect.
DAOs can participate in any purpose or initiative. DAO proponents believe they are the long-awaited alternative to centralized corporations. Critics, on the other hand, have pointed out that there are many unknowns regarding the new trend and the repercussions of participating in it, warning that its unregulated nature could do more harm than good.
What is the Joke DAO?
They’re a community of comedians, performers and comic lovers who engage in a weekly game where they may vote on their favourite jokes with $JOKE and win more or have the joke minted as an NFT governing the Treasury. Jokedao is a project spearheaded by a group of joke fans in space who will run the treasury for the first 20 weeks. In one of their tweets, they wrote- “Jokedao aims to turn every joke into an API key that unlocks encrypted content whenever you type it into participating blockchain apps, enabling you to access the coolest tokens, parties, communities simply by knowing what happens when a rabbi and priest walk into a bar”.
How $JOKE Operates
Within the Dao, they open up a 24-hour call for jokes here on Tuesdays at 12:00 EST. If you submit a joke, you’ll receive 69 $JOKE, up to the first 2500 entries. A judge will select contenders for the Jokerace on a weekly basis. Alternatively, you can purchase $JOKE through the contract address.
On Fridays from 12 to 1 pm est, they host the Jokerace where you can then use your $JOKE to vote your favourite jokes and the best-voted wins.
When one wins, they mint the joke afterwards as an official Jokedao NFTt and auction it off right after the jokerace. Each NFT is a governance token that controls the $JOKE and ETH jokedao treasury.
2/Getting the $JOKE Token
To access the Joke token, simply go to Uni Swap and trade ETH for $JOKE by pasting the Joke contract address. If you have $JOKE, you can see it in Metamask by clicking “Assets” “Import Tokens” “Custom Token” and inputting the $Joke contract address.
Of course, it’s worth repeating that neither $JOKE nor jokedao NFTs are intended to be financial investments with any kind of return, and their sole purpose is to facilitate jokerace voting and jokedao treasury governance.
It is always a smart idea for you to do your own research before parting with your money.
3/Pros of a DAO
Traditional business structures in which control of a business is owned by a small number of people, or even a single person, have given way to decentralized autonomous organizations. This method has various flaws, one of which is that it fails to consider the opinions of all members of the organization.
DAO makes it possible to “hear” everyone’s thoughts. The full automation of blockchain technologies allows members of the organization to vote with demonstrated honesty while also carrying out their decisions.
The following are some of the other benefits of DAO over traditional organizations:
- The system’s transparency. This is made possible by blockchain technology.
- Economy. A decentralized governance system is often referred to as a DAO. You can get rid of the managerial staff with its help by automating the system.
4/Cons of a DAO
- DAO’s security cannot be guaranteed by its developers.
Decentralized autonomous organization creators are prone to coding errors, which can result in significant losses. A fraudulent initiative might also be hidden under the pretence of a decentralized autonomous organization. Before you decide to join the DAO, you need to familiarize yourself with the platform.
- Members of the organization are obligated to follow the majority’s decision.
A decentralized approach to project management decreases the chance of public cooperation, but it does not fully eliminate these dangers.
- Deciding on project development can take a long time.
The mechanism does not always succeed in collecting votes on time.
The Way Forward?
The concept of DAO is improving by the day with interesting communities and social Innovation springing up each day. Won’t be surprised if we had a President Dao made up of past Presidents of a country.
In Web3, nothing is impossible, we simply DAO it.