5 Interesting business areas for DAOs in 2017
What will be 5 great Decentralised businesses in 2017, are these possibilities?
So while you fill
your face with Christmas food, and start to look optimistically
towards 2017, I've decided to analyse some businesses that would make
great DAOs.
The technology
already exists to run fully decentralised autonomous companies, but
what is missing is the imagination and the integration with
traditional entrepreneurs. Hopefully 2017 and projects like -wings-
will start to bridge this divide.
So without further
ado, Here are 5 company types that could benefit from becoming a DAO.
1 – Football Club/
Soccer club
Yes this can be
extended to any sports franchise, but I’m English, so there’s
only 1 sport
worth considering
and that’s Football. There are already plenty of football clubs
that are owned by fans, but the decisions are still made by a board.
Fans would get an even better experience if they could vote on the
next manager, major signings, ticket prices, kit colours and stadium
names. This could all be done while sharing revenue directly with
fans, giving them an even deeper connection to their favourite
sporting heroes. I hope we see the first DAO owned sporting
franchise, regardless of size during 2017, I feel its definitely
possible, and I personally would love to back one with my hard earned
crypto currency.
This could even be
extended to a boxing/MMA type company, with matchmaking being made by
fans, and sponsorship money and PPV being distributed amongst equity
holders
PROS : Fans feel closer to teams
Club finances are
more transparent
Anyone can become
a stakeholder
Profiteering
ceases to become a problem.
CONS: Difficult to regulate who owns stakes in which clubs
2- Crypto-currency Exchange
This is probably
the most needed thing in the universe. There has been efforts to
build decentralised exchanges, but unfortunately true
decentralisation is very difficult to incentivise. What we now have
is a few efforts with little activity meanwhile most of the volume is
found on centralised exchanges. The problem is that these exchanges
have to follow too many laws which actually exclude quite a great
deal of the most promising crypto projects, this actually builds a
greater barrier to adoption for some of the most promising projects
such as DASH and NXT which are not allowed on some US exchanges
because of dividend rules and anonymity features.
A DAO would be a
perfect fit for a crypto exchange as its equity holders would be
vested to provide a good service for the benefit of the exchange and
the entire crypto community and by extension the entire world.
Anonymity negates pretty much all laws, and with all profits paid out
in crypto, it will be almost impossible to be forced into paying
anymore taxes than the stakeholders agreed to pay. Advertising can be
done with a portion of the revenues which will lead to growth, plus
equity holders will actively promote the exchange via social media as
it will directly benefit them.
PROs; Budget for lobbying
Power to negate
some overbearing governments
ability to accept
ALL cryptos
CONs : Most decision making will take longer than traditional exchanges
Some
centralisation will be needed to secure balances
Language barriers
may hinder international adoption
3- Social trading platform
One of Crypto
currency’s main features is the ability to easily and cheaply
distribute equity to anyone connected to the network anywhere in the
world. Another main feature is immutability, the combination of these
two things is a perfect breeding ground for a decentralised social
trading platform.
This platform would
record every members trades, and also their previous success rate. By
then charging people to follow the trades of a certain member and
allowing for proxy trading on centralised or even decentralised
exchanges this could be an easy way to let known winners pick your
stocks for you in an instant manner. Also the members could send out
stock picks using the Daos messaging system to help people organise
their portfolio.
Pros; Equity
offerings and movement without massive regulation
Full immutable
merit finding methods would be easy to implement
Equity pickers
could still remain anonymous and trusted
Cons; Would
certainly be outlawed anywhere in the developed world.
Could only be used
for crypto related investments
4- Political Party
Imagine a
Political party where EVERYTHING was transparent, where we knew
exactly how much was donated, and when. Where all of those funds went
and Where we knew exactly what was said by whom during meetings. This
level of transparency is unheard of in our modern world and the
corruption that follows the opaque nature of our current political
systems is powerful. A Decentralised autonomous political party could
change all of that.
The thing with Blockchain is that it affords privacy as well as transparency, but in
very obvious ways. So the things which need to be conducted in
private, such as members private details can be obscured and the
things which should always be conducted in public, such as
negotiations with private entities should be. Corruption would be a
difficult thing to accomplish with such a party, joining would be
easy and information sharing would be excellent. Voting on party
business would be fair, but would rely on a system to link each
individual to an account within the system.
Pros: Tackles many forms of corruption with plenty of transparency
Cons: Relies heavily on a technology to link every human being to a single account.
5- Movie production company
This is by far the
one I feel could be implemented the soonest and if I don’t see one
implemented by summer I’ll have to try and build one personally. A
decentralised movie production company would be perfect. Basically it
would be like an extension to the crowdfunding method of producing
films, but with token holders able to vote on what actually gets
produced and what portion of the profits would be split among shareholders and what should be put back into the development pot.
There have been many notable successes in crowd funded movie
production. And with the falling price of media production, and new
revenue models, I believe a decentralised approach would be perfect.
People would vote
on which pitches received funding, but could also strike deals with
distributors to show their films, this could be done in private by
elected officials on behalf of the DAO, and sponsorship and native
advertising could also be negotiated both in private or in public.
If you use this
idea and launch it, please let me know. I’d love to be involved!
Pros: Community funds movies that community wants, or feel would be successful
Advertising can be
publicly negotiated, or privately as needs dictate.
If banned in Places
could easily move production anywhere worldwide.
Could be easily
expanded to video game and mobile app production.
Cons: Proposers could vanish with production budget,
May be seen as
equity in some places (USA) and subsequently banned.
So here’s my list
of DAOs I think could change their respective games, This is just my
own personal view of opportunities that lay ahead for blockchain
based business.
I’m extremely
bullish on DAOs, I think they could have a similar impact to what
Bitcoin has had on money, and possibly even a bigger impact, as we
develop better and more efficient governance models and methods, we
will build smarter and more nimble companies and harness the
collective intelligence of our members even better as time goes on.
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