[Insight] Activating Business Events Workforce Supply Using DAO

The Future of Business Events Market Shaped by Blockchain Technology I

The MICE (Meetings, Incentives, Conferences, and Exhibitions) industry is reviving post-COVID but still faces challenges such as a shortage of skilled labor, leading to poor planning and reduced quality of on-site operations. The ongoing issue of labor shortages persists because, while the market demands skilled planners, companies fail to offer salaries and benefits that match these skill levels.

Many experienced planners and operators prefer to work in a flexible environment, like freelancers, rather than being confined to a company with poor working conditions. In project-based event markets like South Korea, there is a need for a new form of labor supply system rather than the traditional vertical corporate-employee structure.

Activating MICE Labor Supply Using DAO

The MICE industry, requiring creative planning, benefits from efficient and flexible manpower management. In this context, a blockchain-based Decentralized Autonomous Organization (DAO) can offer an innovative approach to manpower supply in the MICE industry.

What is a DAO?

A DAO operates without centralized management, utilizing blockchain technology. It allows freelancers to participate in projects and receive rewards based on their contributions. Essentially, it's an autonomous organization where individuals can engage in projects globally and get compensated as per predetermined smart contracts.

How DAO Facilitates Freelancer Participation

1.     Project Posting and Participation: Event organizers can post business event projects within a DAO, and freelancers can express their interest and participate through voting.

2.     Token-Based Reward System: Freelancers' contributions are rewarded with tokens issued within the DAO. These tokens are distributed based on contribution, participation, or performance.

3.     Transparent Work and Evaluation Process: All contributions and work are recorded on the blockchain, ensuring transparency. Post-project evaluations are conducted through voting by DAO members.

Advantages of DAO

The DAO-based labor supply system has two main advantages:

1.     Global Networking: The global structure of DAO offers freelancers opportunities for worldwide networking. This broadens communication and exchange opportunities, as attracting talent for various regional events is easy.

2.     Community-Based Collaboration: Freelancers can share knowledge and experience within the DAO, forming a community. Members can create online forums or discussion groups for specific events or interests, and experienced freelancers can mentor new members or build relationships with experts in various fields.

Challenges of DAO

Despite its advantages, DAO is still in its early stages and faces some challenges:

1.     Imbalance in Voting Rights: In DAOs, voting rights can be determined by the number of tokens held, leading to inequalities. To prevent this, a cap on voting rights or a democratic 'one person, one vote' system should be implemented. The voting system should be designed to reflect actual contributions and participation, not just capital size.

2.     Security Issues: DAOs are blockchain-based and susceptible to hacking and cyberattacks. Advanced security protocols and encryption technologies should be applied to mitigate this, and members should be educated on security practices.

Despite these challenges, a successfully operated DAO can lead to more creative and collaborative global freelance participation in various projects.

(C) VM Consulting