The rise of Web3 has brought a transformative concept into the spotlight: DAO, or Decentralized Autonomous Organization. Unlike traditional hierarchical institutions, DAOs operate on principles of decentralization, transparency, and community-driven governance. There’s no CEO calling the shots—instead, every member contributes based on shared values, self-motivation, and collective vision.
In a DAO, individuals aren’t bound by employment contracts or rigid chains of command. They join because they believe in the mission. Their contributions are voluntary, and their rewards are determined by transparent rules encoded in smart contracts. This model flips traditional organizational structures on their head, offering a glimpse into a future where collaboration is driven not by obligation, but by purpose.
While still in its early stages, DAO has already sparked global interest. It represents more than just a technological innovation—it's a social experiment in trust, autonomy, and collective action. To deepen public understanding, 1783DAO hosted an insightful offline salon on August 13, bringing together seasoned Web3 practitioners to discuss the real-world potential and challenges of DAOs.
Understanding DAO: Beyond the Hype
At its core, a DAO is an organization governed by code and consensus rather than centralized authority. Members propose ideas, vote on decisions, and receive rewards—all recorded immutably on the blockchain. This structure fosters inclusivity and accountability.
However, as several speakers emphasized during the event, DAOs are far from mature. Many current implementations remain experimental, plagued by issues like poor incentive design, governance inefficiencies, and lack of real-world utility. Yet these very challenges underscore the importance of continued exploration.
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Insights from Web3 Pioneers
Amy – Web3 Investor & DAO Researcher (via video)
Based in New York, Amy’s journey into blockchain began during her academic years. Inspired by Friedrich Hayek’s “Denationalisation of Money”, she became fascinated with the idea of decentralized systems operating beyond state control.
She views today’s Web3 landscape as analogous to the early internet—full of noise, speculation, and hype. NFTs, in particular, have drawn comparisons to the 2016–2017 crypto boom: exciting, volatile, and often driven more by speculation than utility.
Yet despite the froth, Amy remains optimistic. She believes that beneath the surface, foundational innovations are taking root. For DAOs to thrive, she argues, they must move beyond token speculation and focus on building sustainable ecosystems with real value creation.
Wang Hui – Founder of Bole Finance & 1783DAO Builder
Wang Hui offered a grounded perspective rooted in practical experience. As both a media professional and active builder within 1783DAO, he sees DAOs not as replacements for companies overnight—but as evolutionary alternatives that could eventually supplement traditional corporate models.
Traditional companies rely on capital investment and employment relationships. Investors fund operations; employees trade labor for wages. But this system often fails to tap into intrinsic motivation.
DAOs change that dynamic. Participation is voluntary. Contributions are self-directed. Rewards are tied directly to impact—not job titles.
Still, Wang acknowledges significant hurdles:
- Immaturity: Most DAOs lack long-term sustainability.
- Over-centralization: Despite claims of decentralization, many decisions still rest with small core teams.
- Weak incentives: Poorly designed reward systems fail to attract or retain talent.
- Lack of real-world integration: Too many DAOs exist in digital silos without tangible applications.
To illustrate progress, he walked attendees through the evolution of 1783DAO—from a group of friends climbing mountains to a structured community exploring Web3 adoption in China.
The name "1783" symbolizes perseverance—the elevation of a peak climbed together—but also serves as a metaphor for the arduous journey of innovation. Since inception, 1783DAO has hosted five major events, influenced thousands, and assembled 20 dedicated builders. They’ve explored NFT use cases in wine and cultural tourism and developed internal systems for reputation tracking and contribution rewards.
Their roadmap includes expanding reach and refining governance—proof that meaningful DAO development requires patience and iteration.
Jisi Ge – Veteran Blockchain Investor & 1783DAO Builder
Jisi Ge framed entry into Web3 as a three-step process:
- Download a wallet – your digital identity in the decentralized world.
- Own an NFT – proof of understanding digital ownership and value transfer.
- Join a DAO – active participation in decentralized governance.
He proposed four key standards for effective DAOs:
- On-chain decision-making: All rules and votes should be recorded on-chain via smart contracts for transparency and immutability.
- Robust incentive design: Rewards must align with long-term goals, avoiding short-term token pumping.
- Layered governance: To counter slow decision-making in fully decentralized setups, delegate responsibilities to subgroups or guilds.
- Compliance readiness: As regulations evolve, DAOs must anticipate legal frameworks across jurisdictions.
These principles aim to balance idealism with pragmatism—a necessary step if DAOs are to scale responsibly.
Lao Yuan – Web3 Practitioner & Community Organizer
For Lao Yuan, DAO is less about technology and more about human ideals. He categorizes DAOs into types: learning-focused, interest-based, social circles, and commercial ventures.
Among these, commercial DAOs may be the most viable starting point—driven by economic incentives that naturally attract participation.
He advocates for a phased approach: start with centralized leadership to ensure efficiency, then gradually decentralize as systems mature. “Perfect decentralization is a myth,” he said. “What matters is progress.”
He highlighted three critical challenges:
- Treasury management: A healthy treasury ensures longevity.
- Incentive alignment: Attracting top talent requires fair compensation models.
- Governance durability: Sustainable decision-making processes prevent stagnation.
Ultimately, he stressed that consensus must be continuous—not one-time votes, but ongoing engagement. And while ideals inspire, economics sustain.
Frequently Asked Questions About DAO
Q: What exactly is a DAO?
A: A Decentralized Autonomous Organization uses blockchain technology and smart contracts to enable collective decision-making without central leadership. Members vote on proposals and share in rewards based on contributions.
Q: How do people earn in a DAO?
A: Contributors earn tokens or points through bounties, grants, or reputation systems. These can translate into governance rights or financial returns depending on the DAO’s structure.
Q: Are all DAOs completely decentralized?
A: Not necessarily. Many begin with central coordination and gradually decentralize. True decentralization is a goal—not always the starting point.
Q: Can DAOs operate legally?
A: Legal status varies by jurisdiction. Some regions recognize DAOs as LLCs or associations; others are still developing frameworks. Compliance planning is essential.
Q: What industries can benefit from DAOs?
A: Any sector involving collaboration—media, art (via NFTs), venture funding (like investment clubs), open-source development, and even local communities—can leverage DAO models.
Q: How can I join a DAO?
A: Start by engaging with Web3 communities online, contribute meaningfully, and apply through official channels. Owning relevant NFTs or tokens often helps gain access.
The Path Forward: From Ideals to Impact
DAOs represent a bold reimagining of how people organize and create value. They challenge outdated hierarchies and offer new ways to collaborate across borders, cultures, and industries.
But as the speakers agreed: enthusiasm must be tempered with realism. Building successful DAOs takes time, iteration, and resilience.
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The journey of 1783DAO—from mountain trails to blockchain trails—demonstrates that progress begins with small steps taken together. Whether it's designing fair incentives, testing governance models, or integrating with real-world economies, every experiment brings us closer to realizing the full potential of decentralized organizations.
As poet Wang Guozhen wrote: "Since we have chosen the distant horizon, we shall forge ahead through wind and rain." The road to DAO is long—but worth traveling.
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Core Keywords: DAO, Web3 organization, decentralized governance, blockchain community, smart contracts, token incentives, on-chain voting