Redefining Value Creation: What is Contribute-to-Earn?
Contribute-to-Earn is being heralded as the next biggest hype wave for blockchain-based applications, but this idea promises much more than just a new shiny app. Contribute-to-earn has the potential to completely revolutionize the concept of ‘work’, and fundamentally change the nature of organizations of all shapes and sizes.
Simple: Quality > Quantity
Part of the Process
The blockchain industry has come a long way in the past decade. Bitcoin completely reinvented the concept of ‘money’, DeFi is already well on the way to toppling traditional finance in terms of efficiency, inclusivity, and returns, and the first ‘killer dApp,’ NFTs, have made waves in both financial and creative circles around the world. Now, the space is moving towards developing more user-friendly applications and use cases that will increase adoption and enable even further levels of innovation.
Contribute-to-earn is a process of proving involvement in a project or organization and being acknowledged and rewarded for that effort. Contributions can come in any shape or size, depending on the project, and rewards generally take the form of payment in tokens or NFTs. Contribute to earn is fast emerging as the rewards mechanism of choice for DAOs who appreciate the fact payment is based on the quality of an individual’s actions rather than timing and that the whole process is permissionless and voluntary.
As DAOs continue to explode in popularity due to the maturity of a whole host of new management tools, the contribute-to-earn model is also sure to continue its rate of adoption.
Quality vs Quantity
DAOs are often understood as being the future of organizations in Web 3.0, where people passionate or skilled in certain areas can earn a living by getting involved. This distinction between traditional companies and Web 3.0 DAOs as being more than just a reshuffled org chart is important to understanding how ‘value’ will be created and rewarded in the future.
Traditionally, most company employees are paid solely for their time. Whether billed hourly, daily or monthly, the primary basis for pay is time. With the exception of commission earners, personnel in large corporations are generally not directly compensated for or exposed to the outcomes of their work. This system directly counters principles of productivity which encourage efficiency and excellence, and instead creates a culture in which entire days can be filled with meetings and busy work but not produce anything of substance.
‘Putting in the time’ to ‘earn a living’ has become the meme of employment in the 20th Century as something more resembling a prison sentence than a purposeful existence. The issue, however, is so deeply embedded in the culture of organizations that instead of addressing the root cause (compensation imbalances), entire departments of people are brought in to address chronically low levels of engagement. A bandaid fix for something so systemic is clearly not the right solution, and so the issue persists.
Championing Value Creation
Although the DAO model remains relatively immature, it holds great potential to provide an alternative to the traditional concept of an organization. Key to this is the distribution of ‘ownership’ to contributors who are directly compensated for their efforts based on the quality and outcome, and are therefore incentivized to be creative, hardworking, and focused on value creation.
AnyDAO believes in the potential of DAOs to be a positive and powerful step in the evolution of organizations and wants to enable individuals to better collect and self-organize. Key to this is supporting incentives for value-creating contributions, which AnyDAO achieves through recognizing actions performed on Web 2.0 platforms and then rewarding them based on Web 3.0 principles and technology.
Led by four guiding principles, including ‘Assist the Transition to Web 3.0’, AnyDAO seeks to support and incentivize innovators to innovate using the idea of contribute-to-earn.
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