In 2023, with the development of blockchain technology, decentralized autonomous organizations (DAOs) are advancing further into the real world.
Previously, DAOs were mostly limited to financial protocol management or digital asset oversight roles.
However, as DAO-related legislation was enacted in the states of Wyoming, Vermont, and Tennessee, cryptocurrency collective investment organizations began acquiring real assets such as works of art, golf courses, first printings of the U.S. Constitution, National Basketball Association teams, and real estate.
- 1 What does DAO mean? What is DAO?
- 2 DAO clashes with the real world
- 3 DAO operating and regulatory costs
- 4 The importance and future prospects of DAO
- 5 DAO Coin Wins Ripple Lawsuit
What does DAO mean? What is DAO?
Decentralized Autonomous Organizations (DAOs) are new organizational structures that operate according to predefined rules encoded in computer programs called smart contracts.
DAO, which operates based on blockchain technology, enables decentralized decision-making and operations, with members generally having a say in decisions in proportion to their stake or investment.
This structure aims to create an organization that is transparent, resistant to censorship, and operates without traditional hierarchical management.
DAO clashes with the real world
However, DAOs face various challenges in the real world.
DAO’s powerful capabilities for crowdfunding and organizing pose the problem of enormous costs for coordination and regulation.
This may overshadow the original benefits of DAOs.
If entrepreneurs, researchers, and regulators understand the costs associated with DAOs, they can advance the DAO’s goal of improving fairness on the Internet.
Additionally, the way DAO uses its resources is not smooth due to its structure where members have to pass proposals.
In this respect, there is a possibility of falling into ‘veto democracy’, and if the person who put forward the proposal does not receive a certain level of support, the project itself may be impossible to proceed with.
DAO operating and regulatory costs
Most DAOs are easy to set up, but require significant costs to run properly.
Establishing a DAO is a difficult process, as everything from incorporation to payment to contributors in jurisdictions around the world involves lengthy legal procedures and high costs.
Additionally, there are crowdfunding risks when raising funds due to ambiguous securities laws, and off-chain disbursements also take several months.
Additionally, if the DAO owns real assets such as land or trademarks, problems such as a ‘fork’ may arise, making it more difficult or even impossible.
The importance and future prospects of DAO
Innovative solutions are needed to reduce coordination and regulatory costs.
Entrepreneurs are building tools to reduce the DAO’s payroll, compliance, and governance burdens, and are calling for clarification of DAO regulations and securities laws for policy solutions.
More research is needed on DAO governance mechanisms to reduce ‘veto democracy’ and increase ‘meritocracy’.
Even the high costs of coordination and regulation highlight the fact that major Internet infrastructure systems that affect the lives of many people must be decentralized.
Successful examples such as Bitcoin and Ethereum prove the importance of forming healthy communities and decentralization.
DAO is a public square that we own and build ourselves, and it is an important task that promises a democratic future.
More and more people have a demand for democratic systems, and voices are growing louder that the Internet should no longer be dominated by a few platforms.
By working to lower coordination and regulatory costs, DAOs will be able to create a more equitable and sustainable world and a democratic Internet.
DAO Coin Wins Ripple Lawsuit
After Ripple’s surprising partial victory with the Securities and Exchange Commission (SEC), Lido DAO Coin rode positive sentiment, rising more than 15% in 24 hours.
According to CoinMarketCap data, the trading volume of Raido DAO coin surged 930% in 24 hours, and its market capitalization also increased 24%, reaching $2 million.
It has risen 146% this year to $2.39, but is still far below the all-time high of $7.30.
Can we more than triple our previous high?
Sentiment indicators and volatility:
The Raido DAO token shows bullish prospects with positive sentiment, and the Fear & Greed Index shows a level of 60 (greed).
Over the past 30 days, the Raidoda token has shown positive performance for 17 out of 30 days, with a price volatility of around 6.7%.
Raido DAO token price outlook based on technical indicators
As a result of analyzing the daily chart, LDO/USDT is above the 50-day moving average and the 200-day moving average, suggesting a bullish market.
This means that the short-term and long-term average price of the asset is high, which could attract more buyers and lead to further price increases.
Rising sentiment for Raido DAO
Raido DAO token is showing bullish sentiment, and the relative strength index (RSI) value is 66.6 (neutral), suggesting a relatively balanced market between buyers and sellers.
However, if the bull market momentum strengthens and RSI breaks the 70 threshold, it will clearly indicate a bull market.
Raido DAO Coin Price Forecast
According to the bullish chart, Raido DAO Coin is forming a daily green candle towards the first important resistance level at $2.550.
The price is expected to successfully break through the key resistance level before the end of today’s trading session.
Afterwards, the price is expected to rise towards $3.295, and the resistance levels to watch out for are $1.617 and $0.921.