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Docklands DAO plans to help Melbourne boroughs recover from the pandemic

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The Royal Melbourne Institute of Technology (RMIT) Blockchain Innovation Hub has released a report proposing the implementation of a Decentralized Autonomous Organization (DAO) as a pilot project to help certain districts in Melbourne CBD recover from the impact of the pandemic support.

The report, part of a five-part series of reports funded by Australia’s Victorian government, details how blockchain technology — specifically DAOs — can be used to help cities like Melbourne recover from a shortage economic activity to recover during the pandemic with the likely persistence of hybrid working arrangements into the future.

Prepared in consultation with the City of Melbourne, State Government and local businesses, the report outlines a detailed and actionable plan for a DAO pilot program called “Docklands DAO” to be implemented in the Docklands district of Melbourne’s CBD.

The author of the report is a researcher at the Blockchain Innovation Hub dr Max parasol — also a contributor to Cointelegraph Magazine.

He told Cointelegraph that DAOs offer cities an innovative way to use anonymously pooled data to optimize resource allocation, increase overall efficiency, and create opportunities for strategic placemaking (collectively redesigning and reinventing public spaces).

A DAO is a crowd-sourced entity governed by token holders and organized around a specific set of rules enforced on a blockchain.

“DAOs encourage participation, so those who work for the DAO get more governance skills and so on…ultimately the community decides the governance mechanisms,” Parasol said.

DAOs have seen rapid global adoption as the technology is increasingly embraced by an ever-widening range of organizations eager to explore the possibilities offered by the blockchain-based digital voting mechanisms.

At the end of 2021, more than 1.6 million people were involved in a DAO at some level, a whopping increase from just 13,000 DAO participants at the start of the year.

Parasol added that the Docklands DAO was designed to solve what he calls the “double shock” problem, where local areas need support to recover from the economic fallout from the COVID lockdowns, and at the same time adapt to the new reality of a hybrid work-from-home model.

Parasol believes that DAOs are an essential step in perfecting the “smart city,” a concept for a city that uses different types of technology, such as voice recognition and motion sensors, to collect specific data.

“Smart cities were originally conceived as public-private partnerships with governments and companies collecting data and then reverse-engineering that data to create a smart city.”

Parasol added that DAOs take the ambiguity and centralized control of data out of the equation: “Instead of smart cities being controlled by centralized partnerships between governments and data services like Cisco, DAOs delegate the action of data to a specific community.”

“With the Docklands DAO, you get a specific type of DAO called “data trust,” where information — like people flow data — is passed anonymously and securely to the DAO, and the DAO then makes decisions about what to do with it Data… It’s all based on community governance.”

Related: How do you do DAO? Can DAOs scale and other burning questions

Municipalities using DAOs as a potential way to make their local areas more efficient are becoming more common. In September of last year, an Austin, Texas-based DAO called the ATX DAO was launched to educate citizens and surrounding governments about cryptocurrency while providing funding for new programs in the local community.