In the world of Web3, the Initial Labor Offering (ILO) model from @DAO Labs is an exciting alternative to the current funding practices. Unlike IDOs that have speed and sourcing capital as their focus, ILOs have user commitment making them stakeholders as their priority. In his opinion, CEO Malte Christensen outlined the actual cause of the change as the frustration with IDOs which are facilitators of speculative activity rather than sustained participation.
This new approach treats effort as the major driver of incentive. CEO’ being able to be earned based on user performance, DAO Labs puts control over timing and the amount of returns into the hands of each participant. Partnership with Autonomys Network is a prime example for this innovation – the unlock rates of each participant are driven by their contributions rather than the default capital investment they receive. According to Christensen, each contributor is responsible for their TGE unlock and subsequent vesting, delegating control to the individual.
However, the process is not entirely smooth. Having different versions of Social Mining and HUBs has made it harder to use the system, as acknowledged by the team. All these challenges notwithstanding, #DAOLabs is committed to standardizing its platform and maintaining integrity of its validation procedures. These issues, however major, have not undermined the basic intention to transform the operations of online labor.
Not to mention, the repercussions of #SocialMining are much further-reaching than crypto-native contexts. Mainstay industries such as fashion and car are inquiring into integration points of #Web3 which leans toward a world where digital engagement systems coexist with day-to-day experiences. If industries take their time to organize, compensate, and encourage social participation, they can tap into a hoard of unusable user creativity and loyalty.
It is noteworthy that the system survives on rough market conditions. Miners improve their position by placing value in quiet times, with rewards to be enjoyed in times of increased activity. This model is far removed from speculative cycles because in Web3 it finally became possible to reward consistent contributions.
