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Analysis

What is Metis? A New L2 Ethereum Solution for DAOs and Other Organizations

by Benjamin Hor -

We have already written a primer on DAOs here. If you’re unfamiliar with DAOs, we strongly encourage that you read that article first before continuing.  We also recommend reading this article for better context on the current state of DAOs. 

Online social coordination is extremely difficult, and when you add anonymity and a capitalistic environment into the equation, you have the chaotic mess that is crypto. To solve this, Decentralized Autonomous Organizations (DAOs) have become a popular model of organization for crypto communities. While not all DAOs are created equal, a key characteristic is that the community should eventually be governed on-chain to promote greater transparency and remove human biases. The problem with this approach is that there are numerous tradeoffs that DAOs have to take to effectively run a community, often at the expense of important principles like accountability and decentralization. DAOs today are also heavily focused on governance voting and less so on building trust among distrustful community members. This is where the Metis team (MetisDAO) comes in.

MetisDAO aims to “revolutionize how people and businesses collaborate” through the Decentralized Autonomous Company (DAC), which is “a system entity that supports an organization’s day-to-day operations, including those of large-scale enterprises.” DACs are essentially DAOs reimagined if they had access to business management tools, and are part of a network that supported all types of businesses, including traditional companies from Web2, and Web3 organizations. However, for the DAC model to be successful, the underlying blockchain infrastructure needs to be redesigned from the ground up - which is why the team has also built a new layer 2 (L2) solution on the Ethereum network, otherwise known as the Metis chain. 

 

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