Can a Company That Exists Entirely on the Blockchain Do Business in Real Life?
This short article will explain how we set up a DAO on the blockchain for less than $10 USD and share ideas on how to make it perform business functions in the real world.
A DAO is a decentralized autonomous organization. However, in order to understand what a DAO can do, it is important to first understand what it is. If you are interested in building businesses, learning about DAOs may be one of the most important things you do in your career as an organizational leader.
“A DAO is when a group of people come together and create a digital organization. This organization is designed to run itself, without the need for a centralized authority. The members of the organization contribute their time, energy, and resources to make it run smoothly. When the organization needs to make a decision, everyone has a say and the group consensus is used to guide the decision-making process.”
By understanding what a DAO is and how it works, you can set your business up for success.
A DAO is a company that’s so low-cost and easy to start, that you can raise money and begin doing business faster than you can say “abracadabra.” And you can manage its operations as transparently as you wish from anywhere in the world. A DAO can help you with a lot of things related to your business activities, like making unlimited accounts to run operations, raising money from investors, and holding votes. Plus, it can help you govern your company in a decentralized way and grow it even more than you might have thought possible.
To give you an example of how powerful the reality of establishing DAO is, brace yourself for our story:
We established our organization RCMG DAO on the Polygon blockchain (here’s the transaction of that happening).
- We opened one main treasury to hold the main capital of the organization, minted 1 billion governance tokens to distribute to future members, and opened 4 additional multisig treasuries (to run separate operations like paying developers, buying real-world assets, trading and saving our profits securely) (1, 2, 3, 4).
- We claimed two intellectual properties by minting them as NFTs (1, 2).
- We acquired ownership of a vault containing over 60 NFT domains.
- We opened an investor pool to offer tokens to anyone interested in investing into our DAO.
- And we deployed an investment product to generate profit for our DAO, all for less than $10 U.S. Dollars in transaction costs.
Let that sink in for a moment…
Now, we’re not saying that all of this was easy or that it didn’t take time, strategy, and effort to execute and organize properly. Because it did. It took around 5 days and 40 hours of deep work to figure it all out, and add the full decade on studying blockchain technology so that all this could finally make sense.
Yet the beauty of all this was that we didn’t require the approvals of any centralized institutions to establish and govern a company. We did it all from a laptop with an internet connection and ~$10 USD worth of MATIC tokens. And that is simply revolutionary!
Point is, we’re excited to be on the forefront of DAOs transforming the way organizations are governed by its members. DAOs are a revolutionary way to form and govern organizations, and we believe that they will have a huge impact on the world. Forming DAOs is not something that is taught at any higher education institutions, so we’re proud to be leading the charge in this new and exciting area.
At RCMG DAO, we’re developing new frameworks to allow decentralized organizations to interact with traditional legal entities in a legal manner. We aim to prove that a DAO on a blockchain can act as the client of any legal corporation and make payments to any legal corporation so that the corporation can execute legal functions in the real world on behalf of the DAO, even if the DAO is not recognized as a legal entity in said corporation’s jurisdiction. In doing so, we hope to provide a model for how other DAOs can operate legally and in compliance with regulations in various jurisdictions.
For those who want to know more about setting up a DAO, we’ll share the process in detail in another article or video. If you’re interested, follow us on social media to stay updated on our next post.
If you’re interested in setting up a decentralized organization, we’re more than happy to consult with you and help you get started. We believe that moving away from traditional, unfair organizational structures is a good thing, and we’re passionate about helping others see the benefits of decentralization. We’re happy to help you establish a more open and transparent organization. Contact us via Telegram (https://t.me/rcmgco)
To learn more about what a DAO is and what it does, follow us on Medium, on Twitter, and subscribe to our Telegram channel. We’ll be sharing everything happening on our journey as we grow and expand our reach across multiple unexplored territories.
Thank you for reading. Any thoughts? We’d love to hear them in the comments.