The traditional organization suffers from several drawbacks making it an ineffective working model. Due to a lack of a better platform, people have to adjust to substandard quality of work. However, with the addition of Decentralized Autonomous Platforms, people can rejoice as organizations are forced to up their game and work according to the latest industry standards.
DAOs were introduced because of smart contracts and blockchain technology. It allows the organization’s users to enjoy complete transparency and unparalleled benefits. One of the successful examples of how a DAO is supposed to operate is PhoenixDAO. PhoenixDAO has launched internal testing of DAO that will ensure complete security, transparency, and autonomy.
Centralized Organizations
Centralized organizations often fall victim to the principal-agent dilemma in which a member of the organization is entitled to make decisions for other members. The majority of the traditional organizations work following a pyramid mechanism in which the person at the top enjoys all the power.
It creates a hierarchy according to which everything works. A person at any level has to follow the directions of the person above themselves. While this model can ensure smooth working ideally, it rarely happens.
In such an organization, an employee’s relationship with the company is defined by a legal employment contract. The contracts are designed to give complete control over employees’ future to the organization and avoid any liability.
Also, a centralized organization is restrictive as the hierarchy does not allow the person at a lower level to work at their best potential. Another drawback for the centralized organization is that it cannot integrate AI-powered solutions seamlessly into its functioning.
Decentralized Autonomous Organization (DAO)
A DAO, as the name suggests, promotes decentralization and autonomy in an organization. Such organizations aim to tackle the shortcomings of a centralized organization and create a better working environment.
In a DAO, no single entity has control over all the decisions. All the tokens or shareholders have governing rights and collectively make decisions about the company’s future. Every member of the organization works independently and has complete control over their actions.
In a DAO, people interact based on a self-imposed or a smart contract. There is no legal contract binding a user to another employee to give them complete control over their actions. DAO works better than a centralized organization as all the transactions are transparent, public, and immutable as they are recorded on the blockchain.
A DAO is capable of automating the functioning of an organization using AI technology without human management. Theoretically, every interaction between the organization and users can be expressed using a smart contract. Ideally, an AI-powered DAO can automate all management and administrative functions without the requirement of an individuals input.
PhoenixDAO: A Decentralized Ecosystem
PhoenixDAO is a decentralized ecosystem that operates on Polygon level 2 scaling solution alongside Ethereum Network. PhoenixDAO is a self-sustaining governance platform that helps manage the Phoenix ecosystem. The Phoenix ecosystem contains three separate solutions that work collectively to create a truly decentralized and secure platform.
The three current solutions are:
- Phoenix DAO
- Staking dApp
- Events dApp
PhoenixDAO sets the new standards for DAOs and acts as the perfect example of how decentralized organizations triumph over traditional organizations.
- Every PHNX spending decision is voted by the DAO community and posted on the running budget page to ensure transparency.
- It is a self-sustaining platform that relies on the revenue generated by its products, such as the dApp store.
- Users can earn the PHNX token by participating in the governance.
- Anyone across the world can participate in the governance of the DAO by staking their PHNX token into contracts.
PhoenixDAO recently announced internal testing of DAO to ensure the smooth functioning of the platform and the app. Platforms such as PhoenixDAO strengthen the ideology of a DAO and will promote the automation of simple tasks.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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