One of the primary ideals in Web 3 is the idea of decentralization. Although some protocols and tokens are not decentralized by nature (Binance for instance), a majority of projects would prefer to be decentralized or transition into a decentralized model of some sort as time goes on.
At the heart of decentralized operations on the blockchain are DAOs, or decentralized autonomous organizations. DAO consulting is necessary for projects that want to create a strong decentralized framework.
Why Decentralization Matters
If you are in the crypto space for any length of time, you will come across this term, “decentralized.” What does it really mean though, and why does it matter?
One of the attractive points about blockchain technology is that it offers financial tools and systems that are not regulated by centralized entities, such as banks and governments. This might sound shady on the surface but in reality it’s simply a yearning for the average joe to be more in control of their financial destiny.
For instance, in traditional finance, if you want to get a loan, you are pretty much stuck with having to go through some kind of bank. They set the terms and conditions, often with crazy high annual interest rates and also tough credit stipulations. Many people don’t even qualify for loans based on their credit history.
You can make a strong argument as to why this is absurd, and one of the reasons why crypto is taking off the way it is. People want more control over their financial destiny, and decentralization is how it’s possible.
A protocol may be founded by one or two individuals, but with decentralized governance overseen by a DAO, day to day operations such as treasury management and emission rates can be controlled by the investors. Think of how powerful that is!
Of course, decentralization is not without its pitfalls and challenges. If you want to create a DAO that functions properly and actually promotes protocol longevity, you may need some professional help. This is new territory for most people – you can’t just take a group of people and form a DAO around them. Interests have to be aligned and the knowledge has to be there – running a decentralized protocol is not an easy feat. This is new technology and a new way of doing things, which means help is a must.
DAO Consulting Done Right
If you are a protocol looking to transition to a DAO model and want a group of professionals guiding you with data, ISA Group is who you want to get in touch with. They are one of the leaders when it comes to blockchain consultation.
ISA Group specializes in all areas of web 3, including DAO consultation and cryptocurrency market insights. Whether you are trying to create a decentralized exchange, a new NFT project that is run by a DAO, or any other web 3 venture, you need ISA Group in your corner. Contact them today!