Cryptocurrency offers anyone the ability to create currency. This is a radical new concept that really has not penetrate the psyche of the industry up to this point. It is as if we know it, yet we do not.
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There are a few experiments with DAOs yet it is not widespread. Some tried were manipulated basically ending up as money grabs. This shows the greed that is still heavily involved in the industry.
Nevertheless, the DAO is something that can be established to root out many of our issues. The fact that there are challenges monetarily in terms of what is being accomplished shows how we miss a very valuable resource.
Fortunately, that is starting to change some.
Funding Our Own Defense
One need only to scan the headlines of late to know the industry is under attack by the political and regulatory establishment. They are writing legislation that is likely going to set the industry back. What started out as a quest for freedom is being taken over by the establishment.
It is our own fault really. We boasted about Lambos and Mooning instead of utilizing the tools that we had to ensure a long lifecycle industry. While development will get around a lot of the issues, we are now seeing those who do the coding attacked.
Thus, defense is required. Sometimes you have to fight the enemy on their own field. This is simply a fact of life. In this instance we see modern warfare mostly take place in the courtroom. Here is where we need to push back.
Now, LeXpunK is entering the picture. It is a legal activism DAO that is seeking to raise $2 million. This will be split up between Curve and Yearn.
The aim is to:
“bootstrap a new community of lawyers and builders working side-by-side to legitimize and protect shared creative values”
Here we could see the start of the foundation for our own legal financing. It takes money to deal with the current system and this project seeks to generate it.
The power of DAOs coming in the fact they can be very specific for what the resources are used for. Part of the map of this one is to keep spinning up new DAOs as needed.
As part of its modus operandi, the LeXpunK Army plans to gradually “spawn” various DAOs, each tailored for specific projects that involve the legal defense of DeFi’s best interests.
As such, the latest DAO proposal aims to focus on long-term strategic advocacy campaigns as well as “rapid-response guerilla lawfare raids.”
This could include “a landmark position paper advocating for positive analysis under securities law,” legal defense of DeFi developers against regulatory litigation, and a framework for “safe harbor” legislation to legalize key aspects of DeFi.
We know that whatever happens, this is going to be an ongoing battle. The regulators and governments around the world will not stop. To wage a powerful campaign, the industry needs to present a strong legal front. This will take people all over the world.
For this to happen, funding needs to take place. **Decentralized Autonomous Organizations (DAOs) can fill this void. After all, we have built in funding mechanisms if we just utilize them.
The Power of Community
A lot is being discussed these days about community and how an entirely new economic system is going to result. This is something that cryptocurrency provides us and is likely to be a central part of Web 3.0. This means that we are starting to realize the power that communities can have from an economic standpoint.
The power of a DAO comes from the fact that it is truly a community entity that nobody controls, at least not directly. Unlike present structures where there is a clear chain of command along with an ownership mechanism, a DAO comes down, usually, to community stake. Those within the community are able to vote for what is desired utilizing the stake of each person.
Since communities are voluntary, they are assembled around a core set of beliefs or interests. Here we can see how they can be targeted in what they stand for. Having a DAO tied to this would mean that it operates within a certain framework.
The example of LeXpunK epitomizes this concept. Here is a group of lawyers who are getting together for the purpose of legal activism for the cryptocurrency industry. They are not trying to build the foundation for the Metaverse, create a new game that will rival Fortnight™, or alter social media. Instead, the DAO exists to fund the activism causes the community deems important.
We are reared in a system where "bigger is better". There are large corporations that control huge parts of our lives. The economy is such that globalization intertwined everything together as these same corporations sought the lowest labor cost.
Cryptocurrency along with digitization allows this trend to be reversed. With the former, we can now establish funding structures that will allow us to accomplish whatever tasks are required. In the example here, it is to fund the legal defense of the crypto industry. Of course, this could be taken to every level of need.
Here is where we see the ability to upend the Venture Capitalists come into play. With our own funding mechanism, we are not beholden to outside entities who simply have the profit motive as their sole focus. We can see this as transformative in the development of applications which traditionally ends up pitting users and Venture Capital firms against each other.
Ultimately, a great deal of the wealth that is created in the cryptocurrency industry will come down to network effect. As more people enter the different applications, we will see monetary values grow significantly. This is going to provide a large amount of wealth in these different communities. Hopefully that all, from large to small, will be able to develop their own funding mechanisms to provide the resources that are needed.
There is no problem with money. We know there is a ton of wealth out there. The challenge with the present system is the distribution model. For most, the results are perfectly clear each time they look at their bank statements.
Now we have a new system that solves a lot of these issues and it is being attacked. Those in power are intent on dismantling whatever they can for their own personal ends. To them, it is all about power.
A group is counteracting this through the utilization of our funding mechanisms. Just like the City of Miami using cryptocurrency as a funding vehicle through the Miamicoin, those in the industry can turn to it for their own ends.
The DAO is going to become more commonplace as time goes by. It is a new entity structure that better aligns with the needs of a community.
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