{"id":435175,"date":"2022-04-21T17:03:00","date_gmt":"2022-04-21T14:03:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/as-labor-struggle-takes-center-stage-can-daos-democratize-work\/"},"modified":"2022-04-21T17:03:00","modified_gmt":"2022-04-21T14:03:00","slug":"as-labor-struggle-takes-center-stage-can-daos-democratize-work","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/as-labor-struggle-takes-center-stage-can-daos-democratize-work\/","title":{"rendered":"# As labor struggle takes center stage, can DAOs democratize work?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a36886cce166\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a36886cce166\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/as-labor-struggle-takes-center-stage-can-daos-democratize-work\/#%E2%80%9D_As_labor_struggle_takes_center_stage_can_DAOs_democratize_work_%E2%80%9C\" >&#8221; As labor struggle takes center stage, can DAOs democratize work? &#8220;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/as-labor-struggle-takes-center-stage-can-daos-democratize-work\/#Brick-and-mortar_DAOs\" >Brick-and-mortar DAOs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/as-labor-struggle-takes-center-stage-can-daos-democratize-work\/#Change_corporate_governance\" >Change corporate governance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/as-labor-struggle-takes-center-stage-can-daos-democratize-work\/#Too_slow\" >Too slow?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_As_labor_struggle_takes_center_stage_can_DAOs_democratize_work_%E2%80%9C\"><\/span>&#8221; As labor struggle takes center stage, can DAOs democratize work? &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-2a0745c6>Web3 has given rise to a number of innovative business models. In particular, decentralized autonomous organizations (DAOs) have started gaining traction as Web3 as the creator economy comes to fruition.\u00a0<\/p>\n<p>Natalie Salemink, CEO and founder of Prismatic \u2014 a tooling and treasury management platform for DAOs \u2014 told Cointelegraph that DAOs are internet-native organizations that utilize smart contracts to facilitate coordination and governance in pursuit of a common goal.\u00a0<\/p>\n<p>When it comes to traditional businesses, though, one of the most interesting aspects a DAO structure can provide is leadership based on computer-generated code rather than individual authority. The idea of operating a business without any central governance has become especially intriguing to brick and mortar companies struggling to incorporate fair rights for workers.\u00a0<\/p>\n<p>For instance, Starbucks, Amazon and <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">App<\/a>le employees are currently<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.nytimes.com\/2022\/04\/20\/business\/economy\/apple-store-union-atlanta.html\"> uniting<\/a> across America to form unions to ensure that retail workers receive fair benefits and humane working conditions. Yet, some members of the Web3 community believe that DAOs could serve as another way for employees to receive equal representation.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Brick-and-mortar_DAOs\"><\/span>Brick-and-mortar DAOs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>For example, Daniel Carias, co-founder of TheCaf\u00e9DAO, told Cointelegraph that TheCaf\u00e9DAO seeks to disrupt the corporate coffee shop model by serving as one of the world\u2019s first brick-and-mortar business DAOs. \u201cThe idea for a brick-and-mortar DAO developed from a <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Reddit<\/a> post I posted in August 2021,\u201d said Carias.<\/p>\n<p>Given the unique nature of a brick-and-mortar DAO, Carias\u2019s Reddit post <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.reddit.com\/r\/dao\/comments\/pacoq0\/dao_real_world_brick_and_mortar_business\/%5C\">caught<\/a> the attention of several other individuals who agreed that a physical DAO, rather than a digital DAO, could be an innovative business model. For instance, Dustin Tong, who also serves as the co-founder of TheCaf\u00e9DAO, told Cointelegraph that Carias\u2019s Reddit post was the only search result he found when researching \u201cbrick-and-mortar DAOs.\u201d<\/p>\n<p>After discovering the post, Tong joined TheCaf\u00e9DAO\u2019s Discord channel, where the community eventually decided to create a physical coffee shop based on a DAO governance model. According to Carias, TheCaf\u00e9DAO was established to solve a real-world problem rather than just serving cups of coffee to a community of people who believe in Web3 models:<\/p>\n<blockquote><p>\u201cWe are solving a societal issue, which is how to give workers true ownership over their work. I believe that a DAO structure could help ensure this. I know that worker cooperatives and labor unions currently exist, but I believe that DAOs could serve as a happy medium.\u201d<\/p><\/blockquote>\n<p>Like traditional DAO protocols with clear goals, voluntary participation and distributed ownership, Carias explained that TheCaf\u00e9DAO aims to provide ownership to anyone who enters its coffee shop. The first instance of this will be demonstrated at TheCaf\u00e9DAO\u2019s pop-up taking place at the Seattle nonfungible token (NFT) museum from April 30 through May 1, 2022. \u201cCustomers who purchase one cup of coffee can immediately become co-owners of TheCaf\u00e9DAO and steer the future of the business,\u201d explained Carias.<\/p>\n<p>Tong added that while the economics behind TheCaf\u00e9DAO is still in development, the DAO will use a combination of Ethereum signatures and blockchain <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a> to ensure that everyone who makes a purchase at the Seattle pop-up location will be offered ownership of the DAO. He said:<\/p>\n<blockquote><p>\u201cWe are starting off by tracking every purchase made using Google Sheets. We know this is centralized, but we are going to be very public about each transaction. We are also providing a simulated distribution of our coffee tokens to everyone who makes a purchase at our upcoming pop-up. The coffee tokens serve as a piece of ownership into the DAO.\u201d<\/p><\/blockquote>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-04\/e3e46f22-78c9-419b-81ec-8b1551ef9e6b.JPG\"><figcaption style=\"text-align: center;\"><em>TheCaf\u00e9DAO founding members gearing up for their first pop-up shop. Source: TheCaf\u00e9DAO<\/em><\/figcaption><\/figure>\n<p>Moreover, Tong explained that holders of coffee tokens will be able to vote on decisions regarding how the DAO is governed and managed.\u201dThe DAO can do what it wants with the tokens based on votes from customers and employees. The tokenomics model here is that ownership is created off the profits generated from the DAO.\u201d\u00a0<\/p>\n<p>Staying true to traditional DAO ideals, Tong also mentioned that DAO ownership is voluntary, meaning that only customers who wish to participate in the DAO can do so. \u201cWe are only collecting Ethereum signatures and tying those to a Discord handle for customers who wish to partake in governance.\u201d<\/p>\n<p>While TheCaf\u00e9DAO is still an emerging concept, Carias pointed out that a DAO model applied to a brick-and-mortar business demonstrates the flaws in today\u2019s corporate structure:<\/p>\n<blockquote><p>\u201cTraditionally, corporations are a hierarchy built from the top down, but now we are seeing workers push back and form unions or join existing unions to counterbalance that power imbalance. But, we believe there is another option that no one is talking about yet, and we are trying to carve that out slowly through TheCaf\u00e9DAO.\u201d<\/p><\/blockquote>\n<p><em><strong>Recent: Brain drain: India\u2019s crypto tax forces budding crypto projects to move<\/strong><\/em><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Change_corporate_governance\"><\/span>Change corporate governance<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Although it\u2019s unclear if TheCaf\u00e9DAO will be successful, the concept certainly does have potential. Shedding light on this, State Senator Chris Rothfuss, minority leader in Wyoming\u2019s State Senate, told Cointelegraph that the idea behind a brick-and-mortar coffee shop DAO does make sense, even if the DAO itself is not tangible.\u00a0<\/p>\n<p>\u201cWhile the shop will serve coffee, the business model with ownership stakes translates to a governance approach based on an algorithmic model as to how decisions are made and how corporate governance is translated through underlying smart contracts,\u201d he said. Given the logic behind algorithmic management models, Rothfuss further noted that he believes DAOs are a natural evolution of brick-and-mortar businesses:<\/p>\n<blockquote><p>\u201cWith a DAO corporate structure, businesses will be able to optimize in a way that wasn\u2019t possible before. Management can be automated in a more efficient way that doesn\u2019t have to directly engage human decisions on a moment-by-moment basis. I do see this as the future and think we will get to a point where almost every business will have DAO components integrated with it, depending on the need.\u201d<\/p><\/blockquote>\n<p>Rothfuss helped draft the legislation for DAOs to be recognized as corporate structures, or limited liability companies, in Wyoming. \u201cThe first DAO in Wyoming was registered on July 1, 2021. We now have over 250 DAOs registered in Wyoming,\u201d he said. While innovative, the senator further recognizes that DAOs have the potential to bring more opportunities to America\u2019s workforce:<\/p>\n<blockquote><p>\u201cNothing provides a better opportunity to bring workers into the value chain while ensuring them with the right to influence outcomes and share in profits or benefits than a DAO structure. A DAO could very well be the union of the future.\u201d<\/p><\/blockquote>\n<p>In addition, a DAO structure allows for customers to partake in governance for the first time. Yat Siu, co-founder and chairman of Animoca Brands \u2014 a Hong Kong-based gaming and venture capital company \u2014 told Cointelegraph that most for-profit companies view customers as a resource from which value must be extracted.\u00a0<\/p>\n<p>\u201cThis is the classic capitalist zero-sum approach based on ownership and governance by a few. But in a DAO, growth tends to both originate and benefit the very group that is typically targeted for value extraction in zero-sum scenarios: the customers,\u201d he explained. As such, Siu believes that DAOs are more likely to deliver value to all constituents involved. \u201cThe customers are also stakeholders and, therefore, have the potential to increase standards of equitability and fairness in the business.\u201d<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Too_slow\"><\/span>Too slow?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>While a DAO structure may provide traditional workforces with greater rights on multiple fronts, these business models will likely take months or even years to develop due to regulations and corporate governance structures already in place.<\/p>\n<p>For instance, Rothfuss shared that the State of Wyoming spent five years passing over 30 pieces of blockchain-friendly legislation to serve as the foundation for enabling DAOs to be effective in Wyoming:<\/p>\n<blockquote><p>\u201cThe work of the uniform law commission in the past year has paved the way for how we\u2019ve been able to do things in Wyoming, but we still have to make sure we are properly reflecting property, currency and the authority of smart contracts under statute to be legally binding.\u201d<\/p><\/blockquote>\n<p><strong><em>Recent:\u00a0Grassroots initiatives are bringing Bitcoin education to communities across America<\/em><\/strong><\/p>\n<p>That being said, Rothfuss is aware that while other states in America are interested in<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.nashvillescene.com\/news\/pithinthewind\/tennessee-becomes-second-state-to-pass-dao-legislation\/article_ecbd4cbe-b5e2-11ec-abe0-77a2385be512.html\"> passing<\/a> DAO legislation, the proper underlying laws must be in place to accommodate for this growth. \u201cMany states will want to adopt the law like Wyoming did, but will likely have bad outcomes because they skipped to the finish line without doing the hard work,\u201d he said.<\/p>\n<p>In regard to traditional business models, some Web3 innovators believe that DAO structures simply won\u2019t resonate, resulting in slow growth. Sam Peurifoy, CEO of Playground Labs \u2014 a company developing DAOs for play-to-earn gaming environments \u2014 told Cointelegraph that he doubts DAOs will soon be more common than traditional businesses:<\/p>\n<blockquote><p>\u201cThere\u2019s not much immediately obvious application for such real-world entities yet. But, one can imagine a world, terrifying or not, filled with autonomous drones plugged into a sprawling network of smart contracts executing business operations autonomously at the behest of tokenholders.\u201d<\/p><\/blockquote>\n<p>Although this may be the case currently, projects like TheCaf\u00e9DAO are certainly a step in the right direction, even if they take time to develop. Tong explained that while the DAO model may not resonate with everyone, it\u2019s an efficient system for individuals looking to gain ownership within their workplace. \u201cI do believe DAOs are a better way of doing things. They are not easy to form yet and we have run into many difficult decisions, but once we understand how to effectively execute as a DAO this model will ultimately be applied to similar industries.\u201d\u00a0<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"defi_newsletter\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/as-labor-struggle-takes-center-stage-can-daos-democratize-work\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; As labor struggle takes center stage, can DAOs democratize work? &#8220; Web3 has given rise to a number of innovative business models. In particular, decentralized autonomous organizations (DAOs) have started gaining traction as Web3 as the creator economy comes to fruition.\u00a0 Natalie Salemink, CEO and founder of Prismatic \u2014 a tooling and treasury management&#8230;<\/p>\n","protected":false},"author":1,"featured_media":435176,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDQvNzQyYzM4NDMtN2Y1Zi00YzZmLWEwOWItMWIzNDUzNTJhYWYwLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74894,75186,74983,93542,74355,117,5069,71511,55229,68637,70934,4965,67874],"class_list":["post-435175","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-blockchain","tag-dao","tag-decentralization","tag-web3","tag-adoption","tag-business","tag-economy","tag-government","tag-law","tag-predictions","tag-regulation","tag-technology","tag-united-states"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/435175","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=435175"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/435175\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/435176"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=435175"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=435175"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=435175"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}