Decentralized networks hold untold promise for tapping developer and entrepreneurial talent wherever it exists in the world, particularly in areas where it is difficult to raise funding. By breaking down barriers for bootstrapping new ventures and giving projects access to essential resources, the tokenization of dapps and services on-chain can incentivize new decentralized governance models that redistribute power, control, and rewards to the collective. Building on the idea of decentralized autonomous organizations (DAOs) and decentralized crowdfunding, a new wave of open, consumer-facing dapps that are controlled by their own native governance systems and token-holding communities can democratize access to the tech economy via blockchain technology. The limitations of DAOs DAOs largely rely on a simple structure where every member can propose an idea and vote upon it democratically. People use them for charity, investment, governance, and fundraising. MakerDAO, for example, is governed by MKR stakeholders. Apart from its on-chain governance, there is also an off-chain discussion for general feedback. It is used before on-chain voting to evaluate the overall sentiment about issues affecting the MakerDAO ecosystem and determine a consensus regarding their resolution. A DAO is open source and transparent, with no board of directors or managers. The community, or each member of the DAO, reviews, records, and maintains all the t...
