SubDAO and Enhancing DAO Implementation in DeFi
Change is something that comes to every part of life, regardless of what that part may be. We have witnessed several eras of human existence come and go with time, with their cultures and technologies becoming outdated with each new phase of human life that comes forward.
A prime example is the system of governance that has existed in institutions, governments, and even families. The most common form is the hierarchical and centralized system that we are now quite familiar with. These systems are characterized by a central figure or body that rules or directs the affairs of the larger community. Power is distributed in a chain of command that is made up of several layers that each have their own central authority figure or body too. You can easily witness this in governments, especially their institutions and parastatals, churches, family structures, etc. It is basically the most common governance structure.
However, time has brought an alternative to this form of governance. With due consideration of the flaws that are inherent in the centralized form of governance, the emergence of the decentralized autonomous organization (DAO) came into play A DAO is a self-governing entity that runs on software code rather than human-written laws.
The main benefit of the DAO model over traditional centralized models is that it reduces the cost of decision-making because it is not dependant on hierarchical administration. There is a horizontal structure in place that eliminates the need for multiple business meetings or other internal resource costs. Furthermore, instead of having to depend on employees, DAOs can hire freelancers to complete tasks, which significantly reduces labor costs and opens up new business opportunities for firms while lowering DAOs' external labor costs. To align the organization’s interests with those of its members, DAOs incentivize a distributed network of users to achieve their goals.
It is important to note that not all organizations can afford to develop individual DAO governance tools. This is especially true for small businesses with limited resources. These organizations, due to their size and funding, are unable to fully optimize the DAO model, limiting themselves primarily to voting and fund management. Nevertheless, there is a very practical solution in SubDAO.
SubDAO is a multi-chain DAO protocol that makes it possible for any decentralized organization to quickly create and manage DAOs. This protocol aims to be a Web3.0 entry point by offering blockchain-based digital agreement signing, DAO social networking, asset management, and other tools and services. SubDAO, in essence, provides DAOs of any size with access to a comprehensive DAO governance toolchain. They promote decentralized governance across all industry sectors by doing so. This is consistent with their main goal of integrating DAO governance into all aspects of life, levelling the playing field, and allowing everyone to freely express their opinions.
SubDAO is a necessary feature in the ever-developing world of DeFi and DAO management. With their suite of products like DAOWallet, dApp, and the upcoming PolkaSign, this particular protocol is bringing the best DAO implementation process for both institutions and individuals. Without technical expertise or advanced knowledge of how DAOs operate, with SubDAO, you can now implement and enjoy the wide benefits that they offer.