Anyone that has ever started a business or just wanted to test the waters with an idea, knows that very early on you can come up against some pretty tough financial intermediaries. What are these? You probably like to refer to them as the dreaded Middlemen. Companies such as banks, insurance brokers, payment processors or wholesalers are all examples, that can shut down your idea pretty quickly.
This is because they all are based on one key principle: middlemen built upon middlemen. To work together, they require everyone to jump through the corporate hoops correctly and leave no room for any flexibility or innovation.
Why are intermediaries such a problem?
They are controlled by humans with no balance of power, leading to an environment where systematic corruption is possible. For example, managers going against company policy for a friend or companies making deals behind closed doors hidden from their shareholders. Most people like to just shake off these known world problems and say:
Well, life is not fair.
Yet what if there was a different approach to business organization? One where these problems and inequalities could not exist.
Sounds too good to be true?
We do not think so, The DAO already happened. The technology needed to make a business organization no longer follow the traditional corporate structure of bosses & employees already exists. One where titles and positions have no meaning, yet everyone has a chance to be heard and be part of key decisions. It could be said that a DAO is the ultimate business organization.
Okay, so what really is a DAO?
DAO stands for Decentralized Autonomous Organization. It is an organization that runs through smart contracts built on top of blockchain technology like Ethereum. Unlike other cryptocurrencies a DAO does not issue tokens just to be used as a form of payment, tokens are used for group governance of the organization and to pay contractors or token holders. There are no CEOs or high-level managers in a DAO, no figure of authority at the top. All members of the organization take part in decision making through a voting system.
To truly understand the benefits and improvement that a DAO brings to the table, let us look at some traditional organizational structures and how the DAO solves most of their underlining problems.
Is a DAO the ultimate business organization?
A partnership is a business that is owned by two or more people who together contribute resources to their entity. They alone decide how the profits are shared among themselves. Now, this structure has some glaring holes, namely that no matter how much you give as an employee you will never be rewarded more than your salary. Which results in one of the killer problems in the work world: low productivity. If employees do not care about the future of the company, why should they be motivated?
Whereas a DAO enables every participant to become determined to see out the success of the project. This feeling is created due to the issuing of tokens(you could loosely see them as "shares") that are accessible to everyone. There is no longer a barrier to being a "shareholder" no need to be a wealthy investor or to be a friend of the owner. Removing this barrier, making it accessible to everyone ensures the organization stays decentralized.
A corporation is a business organization where ownership depends on the number of stocks owned, generally, they are very large companies where key decisions are reserved for board members or corporate executives. Meaning that ideas from lower down the chain are generally ignored or miscommunicated, in fact, most innovation is simply avoided because a change in a corporation quickly becomes a bureaucratic nightmare. No one likes paperwork, right?
In a DAO all decisions are made collectively, you just have to be a token holder to put forth an idea. It does not matter if you have been part of the project since day one or joined yesterday, you will still have a chance to be heard. The voting system allows all members to take part, to vote for or against a decision. This allows for quick collaboration and decision making, that no other business structure can replicate. As a result the risks and fears of making bad decisions are minimized greatly due to change being so easy: a DAO can quickly change its course once the collective realizes a wrong path.
A DAO provides a competitive edge
One thing that all traditional organizational structures suffer from is that they are slow and cumbersome when it comes to a solving a problem. You need a contractor for an extra week to sort out a problem? Then you might lose two days while your HR team figures out the paperwork. The solution to your problem is on the other side of the world? Too bad your company policy is only to recruit locally. You have outsourced a project but they need payment today? Too bad wire transfers take 14 days to be approved by your payroll team.
A DAO is a perfect example of being solution focused because it is flexible and accessible to everyone. Anyone can participate no matter what country they live in because all payments can be made quickly and efficiently with the use of blockchain technology. No mountain of paperwork is needed because all decisions for who to hire and assessing the quality of work, would be done via the voting system and enforced by smart contracts.
In the modern world of everyday changing technology, it seems that the best way forward is to adopt a structure that provides an easy route for innovation and fast decision making. This way you can ensure that you can always incorporate the new features you need to stay at the top of your industry. This is something that is just not possible via a traditional hierarchical company - especially in an industry as cutting edge as cryptocurrency and the blockchain. Which is why we see a DAO is the ultimate business organisation.
We believe the only way forward towards a fairer and equal financial future, is through decentralization - by removing the middlemen completely. To let everyone come together easily, collaborate quickly and be part of a team that shares the same vision. That is why one of the fundamental parts of the Saturn Network, is the Saturn DAO.
Saturn Network - an exchange protocol that is compatible with all EVM blockchains, built following a unique decentralized architecture and following the key principles of a DAO. A whole ecosystem that will let investors and traders come together safely & securely via the use of smart contract technology. One that will let every participant bring forward their ideas and work towards the global adoption of cryptocurrency
Want to know more? Check out Saturn Network's website.