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zDAO is responsible for the deployment, operation and governance of all Distributed Autonomous Organizations, or DAOs, within the Infinite Economy. DAOs have grown in popularity in recent years, after the concept was first realized in April 2016 with what is now infamously referred to as 'The DAO'.
A DAO is a fully decentralized autonomous organization that is managed and maintained according to executable code that exists on the blockchain. In essence, DAOs are a digital replacement for legacy corporations, including that of conventional startups, partnerships, funds and venture capitalists.
Unlike traditional organizations that are instantiated and bound by the legal framework of a particular jurisdiction, DAOs are entirely digital, borderless, and trustless organizations that transcend the notion of a legacy corporation. Similar to how the web reduced the marginal cost of information sharing and media distribution to near zero, DAOs reduce the marginal cost of complexity and coordination at a similar magnitude, enabling every aspect of a company to become digital.
From the instantiation of corporate bylaws and governance, to the management of contracts and funding, Members can coordinate directly with one another by using a shared set of blockchain-based smart contracts.
Imagine a version of Facebook where billions of Members are paid for their data and collectively entitled to vote on the platform's future, or how their data is permitted to be utilized. Imagine a version of Pixar, where digital artists around the world are paid royalties for the submission of their 3D content, without the need for conventional management or venture capital. Imagine a version of Spotify, where individual fans and artists can exchange value directly, without a music label or platform taking the lion's share of revenue. DAOs make these ideas possible and will redefine the role of organizations in the near future.
zDAO is the underlying protocol and set of blockchain-based smart contracts that make DAOs possible within Zero. zDAO is inspired by the foundational ideas behind recent blockchain-based DAO protocols, including DAOStack, Aragon, Colony and MolochDAO. The zDAO protocol provides a flexible set of Ethereum-based smart contracts that enable onchain governance, along with zDAO.js, a nodejs library for interacting with zDAO’s underlying blockchain layer. zDAO is built with modularity in mind, enabling third-party developers to easily extend its functionality for specific use-cases. The Zero Member-interface layer provides a simple abstraction using zDAO and zDAO.js to enable a fast and easy to use pre-configured DAO to govern Zero Networks.
DAOs in Zero are used to facilitate the coordination of shared responsibilities, resources and choices between DAO Members. DAO Members are distinct from Members. DAO Members are individual Ethereum accounts who hold DAO Tokens or Omega Tokens, each of which represents a percentage of total voting weight for a given DAO (outlined in the Section 7.2 and 7.3, respectively). Members may be humans or other smart contracts.