This is a copy of the 2022 research report on decentralized autonomous organizations (DAO) by Cointelegraph Research. Unavailable from its original page, it has been provided here for reference purposes.

The DAO Phenomenon and Why It’s Important

Dear Partners, Investors and Friends,
The blockchain industry is still maturing, and every day, new applications of the technology are being created. Over the past few years, decentralized autonomous organizations, or DAOs, have captured the imagination of the blockchain space. DAOs are disrupting investment, corporations, social clubs, and even political parties. But what exactly are DAOs, and why should the average crypto investor care?

DAOs can be a more efficient form of organization
DAOs are the frontier of coordination. Even though we are individuals, we work together in order to survive. Decisions for how to deploy resources such as capital and labor can be made collectively in a transparent way with the blockchain technology. Members of DAOs can propose ideas and vote on how to use community savings. This reports provides a glimpse of how our society can function in the future without top-down structures. DAOs are a powerful way to make resource allocation more efficient, and there are many examples of DAOs that have already fostered a higher standard of living for its members. If you want to know how DAOs are shaping democracy, corporations, this report is a must-read.

Knowing what to look for can help future investments
The top graph shows the DAOs tracked by CoinMarketCap’s DAO Index vs. the total market capitalization. DAOs are not immune to global economic conditions and have reacted similarly to traditional markets from 2021 through Q3 of 2022. Some DAOs have produced a better return on investment (ROI) than Bitcoin (BTC). Not all DAOs are highly correlated with major cryptocurrencies. For example, Curve DAO (CRV) can improve a Bitcoin portfolio's risk-adjusted return since their daily price movements do not move together often. This means there may be investment opportunities for those who know what to look for, and this report can help provide a starting point.

Cointelegraph Research continues to bring up-to-date reports on the cryptoverse
Cointelegraph Research helps blockchain companies communicate their cutting-edge research to the world by writing, designing and publishing professional reports. We help companies gain wider audiences by developing educational materials in the form of in-depth reports. Our team of academics and seasoned blockchain technologists can cover a diverse range of topics, including tokenomics, macroeconomics, legal, tax, central bank digital currencies, decentralized finance, supply chain logistics and venture capital. To work with Cointelegraph Research’s team on creating a one-of-a- kind report, contact us at research@cointelegraph.com.

--Michael Tabone, Sr. Economist at Cointelegraph Research

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