It is time to “Decentralize Your Week” with Gari folks!!!
In today’s edition, we might be getting ready to witness history repeat once again (in the strangest possible way)
The Gari Research Center will help you understand a DAO like a Vending Machine
& we may see DeFi making a comeback lads…
The Roaring Kitty is BACK 😺
No, we aint cracking jokes here, but for the uninitiated, The Roaring Kitty aka Keith Gill is a Stock Market legend who single-handedly sent the dying $GME stock on a moon-mission.
He broke every rule in the book and played with conviction and executed what might have been the cleanest trade in the history of all financial markets!!!
Fast-Forward to 2024 and he is BACKKKKKKK….
Once he hit the upload button and X (aka Twitter) took notice, GME stock pumped by 110%. Now that’s what we call a comeback!!!
The result???
NYSE even blocked the buy button to save the short sellers from losing their homes, $GME was halted 5 times for volatility!
After the last insane run of GME and hedge-fund managers ignoring the power of retail buyers, this time it might be different.
Underestimating this might be a huge huge mistake…(This is not supposed to be treated as Financial Advice)
‘The Gari Research Center‘📚
What is a DAO?
DAO stands for Decentralised Autonomous Organisation. Now that is out the way, I’ll explain the working mechanism through an analogy…
The above picture has two vending machines in the frame, no, DAOs were not inspired by Vending Machines nor is a Vending Machine a DAO. I will simply be using the example of a Vending Machine to the working framework of a DAO to help you understand better and with full clarity.
So how does the vending machine work?
- A machine installed at a location is loaded with the relevant stock (Chips, Soda, Chocolate…)
- A user can buy anything of their choice by putting in Cash into the machine & making their purchase
- The vending machine works smoothly as long as stock exists
- When the Vending Machine stock is over, a human worker will need to
- Take stock of the products exhausted
- Take the cash out of the machine & deposit it either with the operating company or an account
- Place order for new stock to put into the machine
- When said stock arrives, put the stakc into the machine at the corresponding slots.
Basically, the entire working mechanism of the Vending Machine is full dependent on a human being. In the absence of that Human Being, the entire Vending Machine is either useless or a piece of junk.
Now you can visualise the following:
- Vending Machine is the Organisation
- The human manager is the CEO
- The stock inside the machine is the product of the organisation
- The cash in the machine is Cash flow
This is where a DAO completely changes the game. Being a Decentralised Organisation, a DAO does not work on the traditional model of hierarchy. In a DAO, the users are the ones who dictate the future of the organisation, not a centralised head.
How does a DAO exactly work?
Simply put, A DAO works exactly like a smart contract. On the conception of a DAO, a code is already created that structurally cements the working mechanism of the organisation. As long as this code is valid, the DAO will continue to function without any hassles or bottlenecks. No managers and no CEOs.
Like everything else, even DAOs are not perfect and the end-all solution to the problems of society.
But as we all say and believe, ‘One Step at a Time‘
DeFi is Making a Comeback?
We are not making a statement, but this is what the chart at DeFiLlama is hinting at:
The TVL (Total Value Locked) currently in crypto is at $90.32b, which as per the chart above is showing an upward trajectory.
Seems the accumulation phase is over, distribution phase is almost at the end of its cycle and a next leg up is gaining momentum.
The above TVL is being tracked across all chains and LSTs, but gives a clear picture of the influx of capital in the market and we are still early in the cycle, judging by the level of the previous All Time High.
The End.
& that’s about it all folks!
Hope we helped you decentralize your week in part 1, we will see you in our next edition on Wednesday & then a killer one on Friday.
Till then, stay safe in the madness 😉
