How DAOs Do: A Guide

Everything DAO

TL;DR

What is a DAO?

• A DAO is a group or community built around a certain mission(s) and is coordinated through a shared set of rules that are enforced on the blockchain

• There exist different Types of DAOs

• DAO tools are a suite of tools that have been built to help create and coordinate DAOs

• Even though DAOs promise to revolutionize groups, they cannot solve every problem that organizations face

A Decentralized Autonomous Organization (DAO) is a group or community built around a certain mission(s) and is coordinated through a shared set of rules that are enforced on the blockchain. DAOs are more transparent than traditional organizations since all the actions can be seen and verified on the former.

Shareholders can view the financial statements of the DAO in real-time as they are always readily available on the blockchain, which reduces the risk of censorship and corruption. DAOs are easier to join and have better global access when compared to traditional companies.

Essentially, the beginnings of a cult.

Traditional Company vs DAO. Source: Aragon

Types of DAOs

There are more than 100 DAOs today that manage assets worth over $10 billion. Creating a DAO is not as difficult as it seems. While a DeFi protocol with over $1 billion of assets governed on-chain by over 10,000+ token holders qualifies to be a DAO. A Telegram group with at least 1 ETH and no less than ten members also qualifies as a DAO. This also allows shitposters to get a job.