A Decentralized Autonomous Organization (DAO) seeks to handle governance problems in various sectors. Smart contracts and blockchain act as governance technologies with the ability to promote higher levels of transparency. DAOs are created to help minimize existing principle-agent problems of organizations and companies’ moral hazards. In the absence of third parties, tokens of distributed networks seek to provide incentives to align organization interests automatically.
A Decentralized Autonomous Organization (DAO) is the formal description for the Ethereum’s dApp providing basic rules for the transfer of funds, managers’ appointment, electing representatives, and assigning tasks alongside performing other actions in a community may seek to adopt an ecosystem that will suit their needs. Work Quest DAO is, therefore, responsible for the maintenance and regulation of the Work Quest platform. Many other organizations are adopting DAO decentralization in different industries to promote better functionality and transparency.
Enhancing Governance
To tackle governance problems, an organization’s agent has the power to make decisions on behalf of another person or party in an organization. For example, managers may have the power to decide on behalf of company shareholders. In other circumstances, politicians make decisions on behalf of citizens. Traditionally, people will not know how the different members voted. Also, the deciding parties will not consult the majority of whom they represent. Overall, such processes occur when an agent acts in their interest instead of addressing the interests of the majority of the interests of those they represent.
The DAO seeks to provide a solution to such governance problems by providing an open platform where token holders vote towards approving a suggestion. The Work Quest DAO does not allow a group of individuals to vote on behalf of all its users. All users who own tokens on the platform participate in the decision-making process allowing everyone to air their opinion. Therefore, an agent cannot fully control all actions.
The Work Quest DAO features tokens that act as its internal property allowing an organization in any industry to spend. Also, such tokens are used as a reward system specific to activities within the organization. About the Work Quest platform, users investing in Work Quest DAO receive voting rights. In turn, it influences the way the organization platform operates. This is similar to other DAO-based organizations whereby shareholders receive voting rights when a decision needs approval.
The DAO is applicable in different industries, and it is proving successful and effective. The emergence of the Ethereum Network moved the technology stack from blockchain protocol to the smart contract. The emergence of smart contracts makes the creation of DAOs easily programmable. Also, a user does not have to set up their blockchain infrastructure. DAOs come to play to promote proper governance while at the same time prevent cases of business and promote equality.
Autonomism and Transparency
DAO is appealing for its full autonomism and independence from both outsiders and its creators. With the ongoing global fight against corruption, the information provided on the blockchain is incorruptible. All financial information and transactions performed are recorded on the blockchain. Besides, DAO decentralization seeks to eliminate fraud cases with the provision of reliable feedback before an individual or organization can get into a smart contract with a second party.
Considering that the DAO promotes transparency, anyone with an internet connection and has an internet-enabled device can verify the present members, their financial data, as well as the suggestions made on the platform. The DAO organization is flexible due to its low entry barriers, making it easy for members to join, maneuver, and operate.
To help eradicate corrupt dealings, the Work Quest DAO promotes transparency in all its transactions. Users can make fast and affordable transfers on the platform without the fear of losing funds or payment. Transparency allows participating parties to get into a contract after reviewing all the provided information. All the information on the platform is verified before it is provided to users on the platform.
Eliminating Middlemen
The crypto market seeks to function fully distinctly without the need for hierarchical management. Even when eliminating hierarchical management, organizations seek to uphold privacy and functionality. This concept seeks to eliminate the purpose of middlemen. By eliminating middlemen, organizations play a key role in minimizing the cost of usage on a platform. The gap between the service provider and the end-user does not exist thus minimizing cost. Recruiters and potential employees can directly gain access to each other in the absence of agencies.
DAOs such as the Work Quest DAO have provided a set of rules encoded on a smart contract to perform their functions. A DAO is responsible for maintaining an organization’s platform but it is also important for regulating DAO tokens (governance tokens). Tokens such as WUSD are the Work Quest platform’s stablecoin, which is a type of cryptocurrency. Other organizations introduce their tokens to ease operations or they use an already established cryptocurrency such as Ethereum.
Such a stablecoin aims to keep its value as close as it can to the US dollar, making it an ideal and payments between employers and employees, investment options for investors, and organizations. WUSD functions under an automated system of smart contracts on the Work NET blockchain to achieve this objective. The presence of smart contracts in the DAO system aims to execute automatically, control, and document all the relevant events and information following a specified agreement.
Promoting an Equal Opportunity on a DAO platform
In the DAO, each action, (in this case a vote), is represented by the Ethereum address considering that trading is done using Ethereum.
Every user will have a token that will represent his or her shares on the DAO. The more an individual has tokens, the more opportunity the individual has in voting towards a decision-making process. These tokens are the same as those that shareholders use to vote in the DAO when seeking to decide. You can think of an organization’s token as some sort of contract similar to the use of blockchain. Those who have more control and influence on the DAO are those with more tokens on their address. The Work Quest Token (WQT) has a total supply of 100 million.
The platform is regulated by a set of automated rules on a public blockchain to incentivize individuals to work towards a common mission. After analyzing the importance and advantages of the DAO, the Work Quest DAO seeks to boost the recruiting industry due to its implementation. Work Quest DAO’s mission is to promote a transparent, open, loose, and fully global labor market in the recruiting industry.
DAO Token Privileges
Work Quest Token (WQT) acts as a management function in addition to carrying forth a business logic. DAO’s top management, who are responsible for the decision-making process comprises all the token holders. Keep in mind that the decision-making process may raise positive or negative results.
Conclusion
The DAO decentralization is beneficial across all markets because it promotes transparency, minimizes cost due to the elimination of middlemen, as well as eases the governance process. The role of token holders is to manage a DAO system as well as participate in the platform’s development. DAOs help to minimize existing principle-agent problems of organizations and companies’ moral hazards. The absence of third parties seeks to provide incentives to align organization interests automatically.
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