Why Are DAOs So Important for the Future of Business?

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First came NFTs, then the metaverse and Web3 – now DAOs are the next big concept taking the crypto scene straight to mainstream headlines. Last year, it was ConstitutionDAO’s failed attempt to purchase an original copy of the US Constitution that catapulted the term into common parlance. More recently, DAOs have been associated with everything from the celebrity-fueled frivolity of the Bored Ape Yacht Club to the gravely serious matter of supporting Ukraine as it defends itself in the Russian conflict – a DAO fundraiser that Ethereum founder Vitalik Buterin is reportedly now supporting. 

But does the idea of the DAO have any place in reality, in a more stable world? It seems more than likely that the excitement from Silicon Valley is justified when we consider some of the most significant issues facing today’s businesses. 

Companies today are under more pressure than ever before to demonstrate transparency in how they do business. This imperative takes many forms. Startups and privately owned firms work with their individual investors to agree on an appropriate level of transparency regarding financial matters. For publicly traded firms, financial transparency becomes a matter of compliance for the shares to remain listed on a stock exchange. Firms pay vast sums to third-party auditors to verify their financial statements, which is supposed to provide an assurance to investors that all is in order. 

Of course, it doesn’t always work out so. Recent decades have featured a litany of corporate financial scandals, from US energy giant Enron in 2007 to Britain’s second-largest