From ebb to rise, from VC to DAO

Crisis is an opportunity. Users are facing challenges, VC institutions are struggling, and project parties are struggling even more. In recent years, Web3 activities have been the most lively, and the project parties are the ones with the most traffic.

If the project team still positions itself as a "project party", then there is almost no chance of success. In this DeFi financial monopoly market, projects that are recognized by institutions, exchanges, and foundations are rare, and survival is even more difficult. Only DAO can continue to evolve.

01 Continuously Evolving DAO

Every innovation is the evolution of DAO. #Bitcoin As the pioneer of blockchain, Altcoin began to imitate or micro-innovate #Bitcoin since 2013-2014.

In 2016-2018, driven by the innovation of #Ethereum, public chains financed #publicchainDAOs through ICOs. @VitalikButerin proposed DAICOs to circumvent the moral hazard inherent in ICOs.

In 2020-2022, #DeFi protocol DAOs were launched through IDOs, and @SushiSwap challenged @Uniswap in the name of "DAO". $tokens are generated by protocols and distributed by protocols, which gradually became a consensus. Communities based on "NFT" also began to emerge.

In 2023-2024, community-focused #inscriptions and #memecoin entered the center stage. They inherited the concept of full circulation, fairness and transparency of #Bitcoin, and pushed DAO from #public chain DAO #DeFi protocol DAO to #SocialDAO.

02 DAO from the perspective of organizational form and cold start

Observing the development of the industry from the perspective of "crowdfunding", we can see that blockchain provides a new form for organizations - DAO, and a cold start method - protocol distribution $token.

The cold start method has evolved from PoW, PoS, ICO to IDO, and then to #inscription and #memecoin. DAO's asset - $token.

It is less and less controlled by a single entity: #Inscription and #memecoin return to the global circulation of #Bitcoin, and the same is true for public chains such as #Ethereum and some #DeFi protocol DAO assets;

It gradually relies on protocols to evaluate contributions and distributes through protocols: projects that adopt mechanisms such as PoW, PoS, and liquidity mining have been exploring.

We are entering the era of Social DAO, but the infrastructure and mechanisms are not yet perfect. Therefore, we see #Inscription directly evaluate contributions and distribute assets through "minting service fees". http://pump.fun's #memecoin distributes assets through initial liquidity financing (the initial liquidity raised by the bonding curve in the first phase provides liquidity for the Dex trading pairs in the second phase).

In fact, Social DAO has experienced the baptism of #ICO. In 2021-2022, when NFT orders were placed on OpenSea, it was the era of Social DAO #ICO and centralized trading (book-based trading).

03 Social DAO based on vertical communities

Social DAO relies on Meme to convey the value concept of "attention is the flow of wealth". Although straightforward, it is extremely effective.

In social communities (Social DAO), attention is your capital. By financing initial liquidity through bonding curve and then creating an initial liquidity pool through Dex, the value of social communities can flow.

It can be said that the value of the entire social network now lies in "attention", and this attention is in the hands of a few platform companies. Like most #ICO projects, platform companies also face ethical dilemmas. This is the key to Social DAO's potential replacement of traditional models and creating more value in the future.

What can be done after the attention is gathered? In Web2 social networks, there are already many successful cases of #vertical communities, such as #Mafengwo #Xiaohongshu #Baidu Tieba and #Douban Group.

For the vast majority of enthusiasts who are still exploring the blockchain industry, this may be a rare opportunity.

Abandon the thinking of the project side and embrace "Social DAO". In a vertical community, use blockchain tools to gather a group of enthusiasts and provide services to the global community (enthusiasts or users) in the vertical field. Such an organization should be: - Open - No permission required to join - Not controlled by a single entity - Evaluate member contributions through the protocol and automatically distribute $tokens - Support personal IP, community members can produce products and provide services to others - Does this meet your expectations?