Decentralized Cooperation vs Decentralized governance: Which is more important for a DAO?

Decentralized Cooperation vs Decentralized governance: Which is more important for a DAO?

What’s the first thought that crosses your mind when you hear the term “decentralized autonomous organization,” aka DAO? Chances are that you think about governance – owning a piece of token that gives you access to a group, and in most cases, voting rights.

One of the common definitions of a DAO is a group of people with shared interests using the blockchain. This shared interest could be anything from investing in NFTs, purchasing a property, or supporting a cause. In addition, a DAO is collectively owned and governed by its members. Irrespective of the definition you choose to go with, a DAO combines elements of governance and cooperation. However, one could ask which of these two is more important to a DAO.

A Twitter poll conducted by DAO Times founder, Makoto Takahiro, suggests that most people believe decentralized cooperation was more important than decentralized governance in DAOs. Out of the 86 votes, 61.6% favored decentralized cooperation.

Although Takahiro opined that both governance and cooperation were two sides of the same coin, he clarified that cooperation was more about “self-organization to reach a goal” while governance focused more on “managing and executing plans.”

Given the basic definition of a DAO – a group of people with a shared interest – it appears the industry leans a great deal towards decentralized cooperation. Nevertheless, as earlier stated, DAOs combine both elements.

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