What's a DAO (Decentralized Autonomous Organization)?
Understanding the usefulness of DAOs or Decentralized Autonomous Organizations is a little easier, although DAOs are still very young and have only been tried in a small number of types of organizations so far.
DAO stands for Decentralized Autonomous Organization!
Which is a fancy term for a group of people who agree to abide by certain rules in order to achieve a common goal. A Decentralized Autonomous Organization (DAO) is an organization that runs completely and autonomously on the blockchain protocol according to the rules encoded in smart contracts.
A DAO, sometimes referred to a Decentralized Autonomous Company (DAC), is an organization represented by rules encoded in a transparent computer program controlled by the members of the organization and not subject to the influence of the central government. DAOs are somewhat similar to cryptocurrency enthusiast clubs, only they usually operate with a common goal, give each member the same say in decision-making, and potentially have more money than them DAO, is often referred to as a next-generation organizational structure in which a community of like-minded people work together for a common cause without guidance from a central authority.
Attract people in your own DAO:
The objective is obviously to have as many people as possible in your DAO. Create a real community, welded and dedicated to build a world in the web3.
There are two ways to attract people to your DAO:
- gather a community on Twitter
- engage them on Discord
The path is then simple: attract people on your Twitter, invite them to join your Discord, create interaction on Discord and push them to join your DAO.
NFT Media Boost can help you by optimizing your Discord very quickly.
The difference with traditional organizations:
There are significant differences between DAOs and traditional organizations, including structure, transparency, voting rights, processes, and contracts. DAOs work through a combination of various smart contracts that allow participants to participate equally in decision-making processes within an organization. DAOs solve trust issues by programming their governance rules into smart contract algorithms to orient the organization around the common interests of participants. DAOs are organized using smart contracts, and participants use governance tokens to vote on topics such as fund allocation.
- If a crypto project is governed by decentralized governance, it is considered a DAO and token holders can vote on the direction of the project. No change: In some DAOs, who owns the most tokens makes the decision, so governance is very similar to traditional organizations. DAOs work in a flat hierarchy; that is, everyone has an interest, and no one owns or controls the organization like a typical CEO.
- A DAO is a business structure in which control is distributed among team members rather than centered around an authority figure. The term DAO refers to an organization governed by smart contract algorithms that do not require central decision-makers and classic corporate hierarchies.
- The second largest blockchain describes the DAO as “its own internet company, collectively owned and operated by its members. A DAO is a proprietary internet organization jointly owned and operated by its members.
A new type of legal entity!
DAO is a new type of legal entity that is becoming more and more popular in the Ethereum blockchain ecosystem. The Jenny DAO is a metaverse organization that provides partial ownership of the NFT. This allows individual developers and organizations to create fully legal DAOs in Wyoming, as DAOs are viewed as member-driven or algorithmically-driven organizations that can enjoy the full benefits of organizations.
Setting up a DAO involves some extra steps that other don't have, including defining the rules before writing the code and funding the launch. As this model matures and the legal grey areas where DAOs operate are cleared, more and more organizations can use the DAO model to manage some of their business.
Web3 proponents see DAOs as the logical next step in the business world, as all major business decisions can be shared and automated across the organization. A properly executed DAO can align incentives for stakeholders, from founders to token holders, users, and the entire community, to run a decentralized organization or platform.
The rules of the DAO are written on a transparent, secure, open-source blockchain ledger, which helps ensure that no stakeholder can revoke them in the future, at least not without a majority vote, so the organization only acts to advance the general interest of society.
Ultimately, the DAO is entirely managed by its individual members, who collectively make important decisions about the future of the project, such as technical upgrades and budgetary allocations. Instead, the group makes decisions collectively and payments are automatically authorized when votes pass.
Networks of freelancers, charities whose members approve donations, and group-owned venture capital firms can all be enabled by DAO. DAOs are designed to be completely transparent, so all financial transactions performed by the company are visible to all shareholders and stakeholder communities. Once deployed and the organization is fully functional, all of the above factors come into play.