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Toss in your job and make $300K working for a DAO? Here’s how

“The collaboration-maxi nature was a welcome breath of fresh air.”
Increasing numbers of employees are quitting 95 corporate jobs…

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“The collaboration-maxi nature was a welcome breath of fresh air.”

Increasing numbers of employees are quitting 95 corporate jobs to work for DAOs. While the moneys great, DAOs fall into a legal gray area, and it can be tricky to get your foot in the door.

Researchers Nataliya Ilyushina and Trent MacDonald from the Royal Melbourne Institute of Technology Blockchain Innovation Hub take you through how to get started.

This year could see two emerging workforce dynamics come to a head. Twenty-one million Americans quit their jobs in 2021 heralding the Great Resignation era after an extended experience working remotely during COVID-19 lockdowns and dissatisfaction with conditions upon reentering their workplaces.

One in 5 workers reported an intent to quit their jobs in 2022. At the same time, the peak number of members of decentralized autonomous organizations at the start of August 2022 was 3.4 million, with over 140,000 new members joining in July 2022 alone.

Although the Little Migration to DAOs pales in comparison to the Great Resignation, we might still wonder if these two trends are connected in some small way.

For one, the demographics of both groups are strikingly similar: workers typically between 30 and 45 years old and with the tech industry most affected. Secondly, DAOs are digitally native organizations and a natural fit for many of the disaffected workers seeking new remote employment opportunities.

So, why are people migrating from working in traditional corporations to become digital nomads working in new settings such as DAOs? Could this be your next career move?

 

 

DeepDAO keeps stats on DAOs
DeepDAO keeps stats on DAOs. Source: DeepDAO

 

 

Decentralized alternative

DAOs are a new form of organizational structure offering an alternative to corporations. For workers, the critical difference is the horizontal structure, where there is little formal hierarchy and no bosses.

DAOs offer a revolutionary new type of employment: a hybrid of ownership, traditional employment, freelancing and volunteering. Every member is a boss and a worker (both paid and unpaid) and is free to contribute when and where they see fit. Each member is free to choose how much time they want to spend working, voting and participating in discussions. Moreover, one can be a member of multiple DAOs and choose how much time and effort they devote to each.

According to DeepDAO, numerous top DAO contributors are members of dozens of DAOs at once, with the most prolific contributor currently part of more than 80 DAOs. In other words, employment in a DAO is flexible, discretionary, overlapping and deregulated.

 

 

Work for a DAO
You can make good money working from home. Sure, it sounds like a scam, but its actually what a DAO entails.

 

 

DAO employment offers considerable worker flexibility in terms of their overall supply of labor, working hours and variety of tasks due to the digital, remote and asynchronous nature of DAO operations.

Today, it is possible to earn a living working for a DAO or across multiple DAOs, with some earning as much as $300,000 a year in 2021. A survey of 422 DAO members conducted by Gitcoin and Bankless showed that half of the respondents were able to earn a living from working in one or more DAOs.

 

 

The top five DAOs on DeepDAO
The top five DAOs on DeepDAO. Source: DeepDAO

 

 

A long road to be paid

However, the remuneration rarely comes as a traditional salary and is commonly paid in tokens. Furthermore, the moment one starts working for a DAO and the moment they get paid can be two entirely different points in time.

Here is how the evolution of working for a DAO typically looks. The moment one joins a DAO (usually by purchasing a token), they can start contributing by participating in a community forum (often on Discord) and voting (using Snapshot or something similar). At this point, however, there is a slim chance of getting paid. As ones reputation grows, the DAO community may reward them based on discussion and participation KPIs (usually via airdrops).

 

 

Once a member has familiarised themself with the DAO and proved their reputation, they might start contributing to the core DAO project. At this stage, this usually happens in the form of completing a bounty: a small, disconnected task. Bounties are paid and lead to further accumulation of reputation and DAO-specific skills.

 

 

 

 

The next step is to secure a part-time or full-time position within a DAO. While relatively rare and hard to get, these jobs are very well-paid. Longer-term or ongoing positions such as these are usually associated with the core operations of the DAO project: for example, a software developer role in a protocol DAO or a graphic designer role in an NFT art production DAO. If one does not want to have a fixed arrangement, they can continue contributing when convenient, and the peer review process will decide how to remunerate the value they add to the DAO.

Everyones story transitioning to work for a DAO is different for example, an anon dev called Squelch tells Cointelegraph he went through this entire typical lifecycle of DAO employment in merely a week.

Before joining DAOs, they built carbon market trading exchanges and natural disaster insurance, worked in investment banking, and helped to create an alternative interest rate benchmark to Libor called Ameribor and ran an insurtech company.

Theyve been interested in blockchain since first hearing about Bitcoin in 2009, but it wasnt until the DeFi summer in 2020 that they began to spend every waking moment learning about protocols and smart contracts.

 

 

Group photo of the anons at Tracer DAO
Group photo of the anons at Tracer DAO. Source: Tracer DAO

 



It was still a big leap to ditch their eclectic financial services job but took the plunge when they saw a job ad for Tracer DAO (now Mycelium) looking for someone to build a decentralized derivative. After chatting with the Tracer people, it turned out they idolized Richard Sandor, who was Squelchs mentor.

I jumped on a call with and told them about my experience, and they asked me to be a pro-bono type advisor to the project. Within a week, they asked me to join as a full-time paid contributor and, a week later, asked me to run a core team providing services to the DAO.

Despite earning big bucks in their prior role, money didnt come up in the Tracer DAO chat, and it rarely comes up as the main motivation for joining a DAO. Most say the appeal is in no longer working for a boss. The absence of a hierarchical structure promotes teamwork and the feeling of being part of a community. DAO contributors often mention the fairness and transparency of the organization. They operate like worker collectives operating via blockchain in which each member has a say about how to reward the work of others. The community makes all the decisions.

The collaboration-maxi nature was a welcome breath of fresh air, Squelch says.

It is interesting in that you are connecting and collaborating with people that are also passionate about similar ideas and ideals. However, the challenge is creating coordination mechanisms and incentives so that everyone is working together in tandem to help solve these goals.

They go on to add, Even with the struggle of working in a DAO structure, I see them as being incredible tools to bring people together full-time, part-time and every so often to help bring things together.

 

 

You can be a member of as many DAOs as you like
You can be a member of as many DAOs as you like. Source: DeepDAO

 

 

Irregular hours and no job security

The benefits of decentralization and deregulation also come with risks.

The flexibility of the work comes with a lack of job security and employment entitlements. Like rideshare drivers and other gig economy workers, who work when they want but often do not receive the same entitlements as standard full-time employees, DAO workers are not guaranteed sick, maternity and annual leave provisions.

 

 

Blockchain law expert Aaron Lane from the RMIT Blockchain Innovation Hub says that working for a DAO is in a regulatory gray zone at present. There are established legal tests in most jurisdictions about whether someone is treated as an employee or an independent contractor, he says, adding, Organizations structured as a DAO cannot limit its liability just by virtue of that structure.

DAOs are not immune from other issues, such as workplace discrimination and harassment, but their deregulated nature does not easily allow the prosecution of those practices. After all, which jurisdictional authority does a global DAO fall under?

 

 

 

 

The lack of job security and a legal framework might discourage women from joining if they are worried about the lack of provisions for careers or maternity leave as well as the overall perceived high-risk nature of the industry. There is no data on those issues yet, but it may be one factor in the lack of gender balance in the sector. A Bankless survey of DAO members found seven times more males than females.

But Lane remains optimistic: While critics may say that there is potential for workplace rights to be eroded under a Work-for-the-DAO model, workers have a lot of power, as blockchain and crypto skills are in high demand, and this new technology could actually allow new forms of collectivized employment terms to emerge.

 

 

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While DAO employment still needs to be more clearly defined, there are significant benefits, and its only set to rise throughout 2022. The new employment relationship is attracting talent by offering flexibility, transparency and ownership along with the prospect of generous remuneration.

And the few risks posed by the deregulated nature of DAO employment do not seem to have hampered the growth in DAO membership yet. How all this plays out with respect to the Great Resignation is still unknown, but DAOs have been picking up at least some of the slack in terms of employees moving away from traditional corporations during the pandemic.

Read more: How to bake your own DAO at home with just 5 ingredients!

 

 

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Crypto

Next Bitcoin bull run to be half story, half utility — Mike Novogratz at Token2049

The next Bitcoin rally will require fast and scalable systems, which the community has yet to build, says Galaxy Digital CEO Mike Novogratz.

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The next Bitcoin rally will require fast and scalable systems, which the community has yet to build, says Galaxy Digital CEO Mike Novogratz.

The next Bitcoin (BTC) bull run will have to be much different from historical cryptocurrency rallies in terms of story and utility, Galaxy Digital CEO Mike Novogratz believes.

Compared with previous bull runs, the next Bitcoin rally will have to be more focused on utility and less on the story, Novogratz predicted during a panel at the Token2049 crypto event on Sept. 28.

The Bitcoin bull run of 2017, one of the biggest historical rallies, was mostly about the story, the CEO said, referring to the cryptocurrency’s run from about $1,000 to $20,000 within one year.

According to Novogratz, the 2017 bull run was primarily about the story of people not trusting the government and wanting more privacy and decentralization. “It was a Gen Z, millennial revolution, and it was global. That’s a powerful story,” the CEO noted.

Bitcoin hitting all-time highs above $69,000 in November 2021, another big rally, was “really generated” by the COVID-19 pandemic, Novogratz said. He suggested that the price action in 2020 and 2021 was “probably 80% story and 20% utility,” referring to the growing utility use case of digitalization amid the pandemic.

Mike Novogratz and Bloomberg's Haslinda Amin at Token2049. Source: Cointelegraph

“Ethereum and all the other level ones started really accelerating the work to build a shared blockchain that we could build companies on top of,” Novogratz stated.

In contrast to the aforementioned cryptocurrency bull runs, the next Bitcoin rally will have to be “50% story, 50% utility,” Novogratz predicted, stating:

“It’s people building applications, people building systems a) that are fast and scalable and b) that are user-friendly. We don’t have them yet — that’s why we’re where we are. But in the next few years, they’re coming.”

During the panel, Novogratz also revved up the audience with his bullish prediction of the “inevitability” that crypto will succeed.

“The word ‘inevitable’ keeps coming up. There’s a sense of inevitability that we’re in the right space, inevitable that Bitcoin will have its day,” Novogratz stated. He also expressed confidence that Web3 and nonfungible tokens will be a big part of the gaming space in the future.

Related: Bitcoin analyst who called 2018 bottom warns 'bad winter' may see $10K BTC

Additionally, the CEO noted that despite the ongoing cryptocurrency winter, Bitcoin has still performed better than a basket of various fiat currencies this year. “If you look at Bitcoin versus a basket of currencies, it’s done about 20% better than versus the dollar,” Novogratz noted.

As previously reported by Cointelegraph, Novogratz has made some successful predictions about Bitcoin. Back in 2020, Novogratz predicted that Bitcoin would end the year above $20,000, which turned out to be an understatement, with Bitcoin nearing the $30,000 price mark by the end of 2020.

Additional reporting by Andrew Fenton.

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Druckenmiller: “We Are In Deep Trouble… I Don’t Rule Out Something Really Bad”

Druckenmiller: "We Are In Deep Trouble… I Don’t Rule Out Something Really Bad"

For once, billionaire investor Stanley Druckenmiller did…

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Druckenmiller: "We Are In Deep Trouble... I Don't Rule Out Something Really Bad"

For once, billionaire investor Stanley Druckenmiller did not say anything even remotely controversial when he echoed what we (and Morgan Stanley) have been warning for a long time, and said the Fed's attempt to quickly unwind the excesses it itself built up over the past 13 years with its ultra easy monetary policy will end in tears for the U.S. economy.

“Our central case is a hard landing by the end of ’23,” Druckenmiller said at CNBC’s Delivering Alpha Investor Summit in New York City Wednesday. “I would be stunned if we don’t have recession in ’23. I don’t know the timing but certainly by the end of ’23. I will not be surprised if it’s not larger than the so called average garden variety.”

And the legendary investor, who has never had a down year in the markets, fears it could be something even worse. “I don’t rule out something really bad,” he said effectively repeating what we said in April that "Every Fed Hiking Cycle Ends With Default And Bankruptcy Of Governments, Banks And Investors" "

He pointed to massive global quantitative easing that reached $30 trillion as what’s driving the looming recession: “Our central case is a hard landing by the end of next year", he said, adding that we have also had a bunch of myopic policies such as the Treasury running down the savings account, and Biden's irresponsible oil SPR drain.

Repeating something else even the rather slow "transitory bros" and "team MMT" know by now, Druckenmiller said he believes the extraordinary quantitative easing and zero interest rates over the past decade created an asset bubble.

“All those factors that cause a bull market, they’re not only stopping, they’re reversing every one of them,” Druckenmiller said. “We are in deep trouble.”

The Fed is now in the middle of its most aggressive pace of tightening since the 1980s. The central bank last week raised rates by three-quarters of a percentage point for a third straight time and pledged more hikes to beat inflation, triggering a big sell-off in risk assets. The S&P 500 has taken out its June low and reached a new bear market low Tuesday following a six-day losing streak.

Druckenmiller said the Fed made a policy error - as did we... repeatedly... last summer - when it came up with a “ridiculous theory of transitory,” thinking inflation was driven by supply chain and demand factors largely associated with the pandemic.

“When you make a mistake, you got to admit you’re wrong and move on that nine or 10 months, that they just sat there and bought $120 billion in bonds,” Druckenmiller said. “I think the repercussions of that are going to be with us for a long, long time.”

“You don’t even need to talk about Black Swans to be worried here. To me, the risk reward of owning assets doesn’t make a lot of sense,” Druckenmiller said.

Commenting on recent events, Druck was more upbeat, saying “I like everything I’m hearing out of the Fed and I hope they finish the job,” he said. Now, the tightening has to go all the way. “You have to slay the dragon.” The problem is that, as the BOE demonstrated with its QT to QE pivot today, it's impossible to slay the dragon and sooner or later every central banks fails.

What happens then? According to Druck, once people lose trust in central banks - which at this rate could happen in a few weeks or tomorrow - he expects a cryptocurrency renaissance, something which may already be starting...

... and not just there, but in the original crypto - gold - as well...

Excerpts from his interview below:

Tyler Durden Wed, 09/28/2022 - 12:26

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Crypto

Next Bitcoin bull run to be half story, half utility: Mike Novogratz at Token2049

The next Bitcoin rally will require fast and scalable systems, which the community is yet to build, Galaxy Digital CEO Mike Novogratz.

Published

on

The next Bitcoin rally will require fast and scalable systems, which the community is yet to build, Galaxy Digital CEO Mike Novogratz.

The next Bitcoin (BTC) bull run will have to be much different from historical cryptocurrency rallies in terms of story and utility, Galaxy Digital CEO Mike Novogratz believes.

Compared to previous bull runs, the next Bitcoin rally will have to be more focused on utility and less on the story, Novogratz predicted at a panel at the Token2049 crypto event on Wednesday.

One of the biggest historical rallies, the Bitcoin bull run of 2017, was mostly about the story, the CEO said, referring to the cryptocurrency’s run from about $1,000 to $20,000 within one year.

According to Novogratz, the 2017 bull run was mostly about the story of people not trusting the government and wanting more privacy and decentralization. “It was a Gen Z millennial revolution. And it was global. That's a powerful story,” the CEO noted.

Another big rally, with Bitcoin hitting all-time highs above $69,000 in November 2021, was “really generated” by the COVID-19 pandemic, Novogratz said. He suggested that the price action in 2020 and 2021 was “probably 80% of the story and 20% of utility,” referring to the growing utility use case of digitalization amid the pandemic.

Mike Novogratz and Bloomberg's Haslinda Amin at Token2049. Source: Cointelegraph

“It's theory and all the other level ones started really accelerating the work to build a shared blockchain that we could build companies on top of,” Novogratz stated.

In contrast to the mentioned cryptocurrency bull runs, the next Bitcoin rally will have to be “50% story, 50% utility,” Novogratz predicted, stating:

“I see it's people building applications, people building systems that are fast and scalable and that are user friendly. We don't have them yet. That's why we're where we are. But in the next few years, they're coming.”

During the panel, Novogratz also revved up the audience with his bullish prediction of the “inevitability” that crypto will succeed.

“The word inevitable keeps coming up. There’s a sense of inevitability that we're in the right space, inevitable that Bitcoin will have its day,” Novogratz stated. He also expressed confidence that Web3 and nonfungible tokens will be a big part of the gaming space in the future.

Related: Bitcoin analyst who called 2018 bottom warns 'bad winter' may see $10K BTC

Additionally, the CEO noted that despite the ongoing cryptocurrency winter, Bitcoin has still performed better than a basket of various fiat currencies this year. “If you look at Bitcoin versus a basket of currencies, it's done about 20% better than versus the dollar,” Novogratz noted.

As previously reported by Cointelegraph, Novogratz has made some successful predictions about Bitcoin. Back in 2020, Novogratz predicted that Bitcoin would end the year above $20,000, which turned out to be an understatement, with Bitcoin nearing the $30,000 price mark by the end of 2020.

Additional reporting by Andrew Fenton.

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