Tokenomics 101: DAOs

DAOs seek to solve many of the most pressing problems that traditional companies face today thanks to cryptographic mechanisms and Social Tokens. By leveraging new technologies, they give freedom and power back to the person, and give back assets that individuals seek today and that traditional companies took away a long time ago.Incentives will ne... See more

More simply, DAOs are a new way to finance projects, govern communities, and share value. Instead of a top-down hierarchical structure, they use Web3 technology and rapidly evolving governance and incentive systems to distribute decision-making authority and financial rewards. Typically, they do that by issuing tokens based on participation, contri... See more

At the same time, however, native tokens are exposed to general market volatilities and are not immune to strong sell-offs during bear markets. It is in such circumstances that the daily operations and functionality of a DAO can be disrupted due to the lack of cash reserves for its regular funding. Partially compensating a core group of team member... See more