DAOs, like technological advances before them, will change the world of work. Just as the plows, looms, and computers of our forebears radically reinvented our daily acts of labour, so DAOs (and Web3, will shift our perceptions and change our labour practices). DAOs have already proven they are the future, now they just need the tools to get there. This is where Rain comes in. Rain offers a corporate crypto credit card and specialised payments rails that lets DAOs use their operating capital easily in Web2 with their crypto treasuries.
DAOs versus Centralised Organisations
A traditional organisation is centralised, permissioned, and hierarchical. A DAO is a collective. Its power is distributed flat, far, and wide and into the hands of both workers and investors, and anyone else who wants to join them – at any time. This is because entry into and exit out of the DAO by its ‘workforce’ is fluid, permissionless, and automatic. The DAO can effectively and easily, thanks to DLTs, distribute ownership of its ‘mission’ and its treasury to anyone who wants to join through simple blockchain governance methods that are trustless, secure and transparent.
The explosion of creativity and productivity manifested by this arrangement is astounding. Horizontal expansion of available workforces and ‘loose’ arrangements that can be as ironclad as any traditional contract is powerful. Rather than workers ‘chained’ to a single entity whose specific practices rule their lives, workers can, instead, work multiple micro-professions that easily integrate within their own personal lives. It’s like remote work, but no one to answer to. Just find a DAO that needs some of your skills, deliver on the bounties, collect your reward and, if your experiences are good, stick around for more. For DAOs, they have instant access to a huge pool of talented highly-specific workforces, and can pay them directly with ownership of the ‘organization’ as a whole.
The Long Tail of Talent
In today’s ever longer tail of the creator economy, where small micro-niches have capturable value, and where creators need autonomy over where, when, and how they work, DAOs are a perfect organisational structure. They can take total control of their income and earn from a variety of sources stemming from the needs of various DAOs, work which by its nature will be more creative and human-focused, as algorithmic work is increasingly handed over to ever more sophisticated distributed ledgers.
Workers of all varieties can be more useful, actively incentivised with every action they perform, only doing the tasks they care about and wish to perform, with zero hierarchical repercussions, and activities mandated by a distributed, wide group. Their payments, through crypto, can be automated on task-completion, and sent securely and directly to their wallet. It allows people to work without jobs, and also to own pieces of the web3 landscape through their efforts, automatically diversified by having holdings in the enterprises, organisations, and collectives they choose to be a part of.
Rain: Decentralised Payment Rails for DAOs in TradFi
DAOs, though, still need the tools for effective treasury management and smooth link between on and off-chain as decisions are taken and executed by the collective as a whole. DAOs will still need real-world cash facilities to finance their operations. Perhaps they want to send two of their developers to a conference, or they want to purchase specialised equipment that they need to enact a goal. However, they don’t want to have to interact with a centralised system and fall into the same problem of having a single entity or group in control of the Web2 funds and, by extension, over a portion of the treasury as a whole.
DAOs will naturally hold the majority or all of their funds in crypto. To make real-world purchases, they need to be offramped – which can be an expensive strain on the budget and lose much of the efficiency the blockchain creates. On-chain custody can be lost, too.
Using Rain, DAOs can spend from their treasuries directly on their card and unlock those funds instantly in traditional payment rails, and without suffering the painful offramp fees and usual time lag of selling crypto for fiat. Spending controls can also be set so that only pre-set funds voted on by the DAO can be used for expenses. Security, transparency and accountability are maintained at all times through the interfacing of Rain’s payment processing system and the DAO’s treasury.
DAO Funds Flow Like Water with Rain
Rain will unlock an explosion of wealth deployment as, currently, many DAOs have funds locked up with no easy way of spending it trustlessly except on-chain (of course). Rain will help them spend it trustlessly off-chain. DAOs are the future of the world of work, they just need the tools to succeed. The ability to instantly crowdsource willing highly-incentivised workforces, through ownership structures that represent the needs of all, is powerful. Rain lets these collective’s funds flow like water through the TradFi ecosystem and lets them begin the crucial deployment of their funds to build their businesses the right way.
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