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New management form and organizational management realized by “Limited Company DAO”

DAO is an abbreviation for Decentralized Autonomous Organization.

It is attracting attention as a new organizational form that utilizes blockchain technology to decentralize and automate organizational operations such as decision-making and fund management.

In conventional DAOs, the rules were determined by code, and decisions were generally made by token holders. However, it lacked a legal basis, and its application to actual business operations was limited.

What emerged was the ``Limited Company DAO,'' which incorporates the concept of the existing organizational form ``Limited Liability Company.'' By having a limited liability company as the parent company, it is possible to incorporate the decentralized governance of a DAO while providing legal stability and business implementation power.

【Advantages of LLC type DAO】

  1. Execution power as a business entity with legal personality By taking the organizational form of a limited liability company, appropriate business management and accounting processing is possible.

  2. Open and flat governance Decisions regarding the operation of the LLC can be made through proposals and votes by token holders.

  3. Ensuring fairness and transparency through decentralization Decision-making history is recorded on the blockchain, ensuring fairness and transparency in operations.

  4. Realization of flexible incentive design It is possible to provide incentives to employees and the community, such as by giving token rewards according to the degree of contribution.

  5. His governance, which is expected to ensure long-term stable business continuity, will be conducted on the blockchain, and long-term community-based continuity can be expected.

LLC type DAO is a new form of organizational management that combines existing management forms and Web3 technology. It is expected to be used in a variety of fields in the future, as it can balance business execution with highly transparent governance.

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