The rise of Web3 has brought with it a wave of innovation, and at the heart of this transformation lies the Decentralized Autonomous Organization (DAO). A DAO is more than just a new way to organize people—it represents a fundamental shift in how communities collaborate, make decisions, and share value. Unlike traditional hierarchical organizations, a DAO operates without a central authority. Instead, every member contributes voluntarily toward a shared vision, governed by transparent rules encoded on the blockchain.
In a DAO, there are no forced obligations or top-down commands. Each participant acts autonomously, accountable only to the collective rules and their own motivation. Membership is driven by belief—not just in technology, but in a shared philosophy of openness, fairness, and self-governance. What you gain from a DAO depends entirely on what you put into it. This self-driven model fosters ownership, creativity, and long-term engagement.
While still in its early stages, DAOs have already sparked global interest. Though the concept has existed for only a few years, real-world experimentation has accelerated over the past two years, revealing both immense potential and significant challenges. The future of DAOs will be shaped not by speculation, but by how deeply we understand them, how rigorously we test their models, and how thoughtfully we implement them.
To deepen this conversation, 1783DAO hosted an insightful offline salon on August 13, bringing together experienced builders and thinkers to explore how DAOs can create and capture value in the Web3 era.
Insights from Web3 Pioneers
The event featured seasoned contributors who have been navigating the Web3 space for years. Their perspectives offered a balanced view of where DAOs stand today—and where they could go tomorrow.
Amy: A Global Perspective on Web3 and DAOs
Amy, a Web3 investor and researcher based in New York, joined via video call to share her journey into decentralization. Her interest began during college when she encountered blockchain technology and read Friedrich Hayek’s “Denationalisation of Money”, which ignited her fascination with decentralized systems.
She believes that while Web3 is still in its infancy, it holds transformative promise. However, she cautions against mistaking hype for progress. Current NFT trends, she notes, resemble the speculative frenzy of crypto in 2016–2017. Many projects lack utility and long-term sustainability.
Despite these concerns, Amy remains optimistic. She sees DAOs as one of the most promising applications of Web3—offering new ways to align incentives, distribute ownership, and build communities rooted in trust rather than control.
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Redefining Organizational Models: The Case of 1783DAO
Wang Hui, a core builder of 1783DAO and founder of Bole Finance, offered a grounded perspective on DAO development through lived experience.
He argues that traditional companies—born out of the industrial age—are optimized for efficiency and capital aggregation but often fail to unlock human potential. Employees trade time for wages within rigid hierarchies, limiting autonomy and innovation.
DAOs present an alternative: voluntary participation driven by intrinsic motivation. Members contribute because they believe in the mission—not because they’re compelled by a job contract.
However, Wang emphasizes that most DAOs today face critical challenges:
- Immaturity: Many lack clear structure or long-term vision.
- Lack of Sustainability: Without recurring revenue or engagement, momentum fades.
- Poor Incentive Design: Token-based rewards often encourage speculation over contribution.
- Hidden Centralization: Despite claims of decentralization, power frequently rests with small founding groups.
- Overemphasis on Tokens: Some DAOs treat token launches as endpoints rather than tools for governance.
1783DAO was founded not as a financial vehicle, but as an experiment in community-driven innovation. The name “1783” draws inspiration from mountaineering—a metaphor for the arduous yet rewarding journey of building in Web3. Just like climbing, progress is slow, full of setbacks, but ultimately transformative.
Since inception, 1783DAO has hosted five offline events, influenced thousands, and grown to include 20 active builders. It has explored practical use cases such as NFT integration in the wine and cultural tourism industries. To ensure accountability and engagement, the group developed its own point system and reward/punishment mechanisms.
Still evolving, 1783DAO aims to expand its reach and refine its governance model—proving that meaningful decentralization requires patience, iteration, and shared purpose.
Building Standards for Sustainable DAOs
Chicken Silk Brother (Jisi Ge), another seasoned Web3 veteran and recent 1783DAO builder, focused his talk on establishing standards for effective DAOs.
He outlined three essential steps to enter Web3:
- Download a wallet – Your digital identity in the decentralized world.
- Acquire an NFT – Proof of asset ownership and understanding of digital value transfer.
- Join a DAO – Demonstrates active participation and commitment to community governance.
Based on his experience, he proposed four foundational pillars for any viable DAO:
- On-chain Governance
All major decisions should be recorded on the blockchain via smart contracts. This ensures transparency, immutability, and auditability—core tenets of trustless systems. - Fair Incentive Design
Rewards must align with contributions. Poorly designed tokenomics can lead to short-term speculation instead of long-term value creation. - Layered Governance (SubDAOs/Guilds)
Pure decentralization can slow decision-making. Introducing subgroups or guilds allows faster execution while preserving overall autonomy. - Regulatory Awareness
As governments begin regulating crypto assets and decentralized entities, proactive compliance planning is crucial—even if formal frameworks don’t yet exist.
Jisi Ge concluded by stressing that Web3 remains highly experimental. Uncertainty is inevitable—but so is opportunity.
DAO as an Ideal: Practical Wisdom from Lao Yuan
Lao Yuan, who entered the blockchain space in 2018 and has organized numerous Web3 discussions, views DAOs as ideals worth pursuing, even if perfection is unattainable.
He categorizes DAOs into types: learning, interest-based, social, and commercial. Among these, commercial DAOs may be the easiest to launch because economic incentives naturally attract participation.
His key insights include:
- Start with centralized leadership, then gradually decentralize.
- Prioritize efficiency and market relevance over ideological purity.
- Build consensus through continuous action, not abstract debate.
- Recognize that not all community members are ready for DAO participation—guidance and filtering are necessary.
He identifies three core challenges facing DAOs:
- Treasury Management – A healthy treasury is the foundation of sustainability.
- Incentive Alignment – Attracting top talent requires fair reward systems.
- Governance Longevity – Effective decision-making structures ensure survival beyond initial hype.
Lao Yuan reminds us that building a DAO is harder than launching a product. It demands operational experience, strategic thinking, and emotional resilience. Transitioning from a project community to a true DAO should be gradual—rushing leads to collapse.
Ultimately, ideals inspire us—but economics sustains us. Every successful DAO must develop a revenue model and continuously refine its governance to retain contributors.
Frequently Asked Questions (FAQ)
Q: What exactly is a DAO?
A: A Decentralized Autonomous Organization (DAO) is a member-governed community that operates through transparent rules encoded on the blockchain. It enables collective decision-making without centralized leadership.
Q: How do people earn in a DAO?
A: Contributors earn through token rewards, reputation points, or direct payments based on tasks completed. Earnings depend on individual input and the DAO’s incentive structure.
Q: Are all DAOs fully decentralized?
A: Not necessarily. Many start with centralized elements and evolve toward decentralization. True decentralization requires time, tooling, and broad participation.
Q: Can anyone join a DAO?
A: Most are open to anyone who meets entry criteria—such as holding a specific NFT or being invited by existing members.
Q: What happens if a DAO fails?
A: Like any organization, DAOs can dissolve due to lack of funding, poor governance, or loss of interest. However, their assets remain on-chain and can be reallocated or returned.
Q: How does a DAO make decisions?
A: Typically through token-weighted or reputation-based voting on proposals. Major decisions are executed automatically via smart contracts once approved.
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The path to DAO is not linear—it’s experimental, iterative, and deeply human. Whether seen as an organizational upgrade or a social experiment, DAOs represent a bold reimagining of collaboration.
As poet Wang Guozhen wrote: “Since we’ve chosen the distant horizon, we shall journey through wind and rain.” The journey toward true decentralization has begun. With courage, clarity, and continuous learning, we can turn this vision into reality.
Keywords: DAO, Web3, decentralized autonomous organization, blockchain governance, on-chain voting, token incentives, community building, smart contracts