Web3Voice – DAOs & Tokenomics: Navigating the Economic Models of Decentralized Organizations

On 25th May 2023, Zeeve held a Twitter space hosted by Karthik MS, Social Media Manager of Zeeve, where Utkarsh (Schrodingrrr. eth) Singh, Founder & CTO @ DAOstruct & Nishu Kumar, Co-Founder @ DAOstruct, has been invited to join the discussion on “DAOs & Tokenomics: Navigating the Economic Models of Decentralized Organizations.”

The session began with a brief announcement about an upcoming event in Chandigarh organized by Zeeve.

After the introduction, Karthik starts the discussion with a question about what DAO is.

Nishu Kumar and Utkarsh Singh discuss the concept of DAOs and how they differ from traditional centralized organizations. They explain that DAOs are organizations run by code, where decision-making processes are determined by a set of codes on the blockchain.

In contrast, centralized organizations rely on a hierarchical structure with power concentrated in the hands of a few individuals. DAOs operate democratically, with decision-making involving a community of token holders who vote on proposals.

Karthik then shifted to the topic of hybrid models of DAOs. Nishu Kumar and Utkarsh Singh describe that while DAOs initially emerged as fully decentralized entities, there is now recognition that some level of centralization can be beneficial.

Hybrid models blend decentralization with elements of centralization to address issues such as expertise and efficiency. It allows for a balance between community involvement and more centralized decision-making when necessary.

The next question asked to Nishu Kumar and Utkarsh Singh is how tokens within the DAO provide value and utility.

To this question, they highlight several functions of tokens within DAOs, including governance and decision-making, ownership and participation, value exchange, incentives and rewards, and fundraising and financing. Tokens grant holders governance power, enabling them to have a say in the direction of the DAO.

Tokens also facilitate value exchange, as their value can increase over time, providing potential profits for early adopters. Incentives and rewards keep community members engaged and active in the DAO.

The session concluded by briefly mentioning the network effect generated by tokens as they become listed on exchanges and gain visibility in financial reports. The speakers emphasized the importance of tokens in DAOs’ overall functioning and success.

To find more detailed answers from Nishu Kumar and Utkarsh Singh on “DAOs & Tokenomics: Navigating the Economic Models of Decentralized Organizations,”

click the link below and listen to the Zeeve Tech Talk episode.