What is DAOs?

  1. What is DAO?
  2. Characteristics of DAO
  3. Three steps to launch a DAO
  4. DAOs come to change everything. The Internet has evolved since it was launched in 1983. The web3 represents empowerment of the user that was not known before.

What is DAO?

A Decentralized Autonomous Organization(DAO) is a non-centralized organization. A system of rules enforced on a blockchain governs the community, and choices are made from the ground up. DAOs are cooperatively owned and governed by their members. They have built in treasuries that may only be accessed with the permission of members. Decisions are made by suggestions that the group votes on over a set of period.A DAO operates without the need for hierarchical management and can serve a variety of objectives.

Characteristics of DAO

Transparent - Anyone can examine the code because it is open source and also everyone can see how decisions have been made on the blockchain.

No hierarchy - There is no hierarchical management. Usually stakeholders make decisions rather than managers or leaders.

Democratic Changes - By deciding on proposed changes , investors can alter the law of a DAO.

Open Access - Anyone with an internet connection could acquire or keep DAO tokens, granting them voting power in the DAO.

Recruiting - A DAO can hire the talents outside , since there will be a situation that only humans can.

Three steps to launch a DAO

Smart Contract Creation — A group of developers must create the Smart Contract for DAO’s. They can only amend the rules specified by these contracts through the governance system after they debut. As a result, they must rigorously test the contracts to verify that no important details are missed.

Funding — Following the creation of the smart contracts, the DAO must decide how to receive financing and implement governance. Tokens are commonly sold to raise revenue which provide holders with voting rights.

Deployment — The DAO must then be launched on the blockchain once everything has been set up. Stakeholders will now make decisions on the future of the organization. The founder of the organization, individuals who developed the smart contracts have no more influence over the project than other stakeholders.

How does DAO work ?

Smart contracts are used to construct the rules of DAO which are set by a core team of community members. These smart contracts lay the foundation for the operations. They are apparent, verifiable, and publicly auditable, allowing any potential member to fully comprehend how the protocol will operate always.

Once these rules have been formally written onto the blockchain, the DAO must figure out how to acquire funding and how to distribute governance. This is commonly done through token issuance, where the protocol sells tokens to raise funds and replenish the DAO's treasury. Token holders receive voting rights in exchange for their money which are closely follows to their holdings. The DAO is ready to be deployed once funding completed.

After deploying the code it can only be altered by obtaining a consensus through member vote. That is, no specific authority has the power to change the DAO's rules; it is completely up to the DAO's token holders to determine.
DAO Vs Traditional organization


Every action is entirely transparent and open to the public.

Without the use of a trusted intermediary, votes are counted and the outcome is applied automatically.

The majority of the time, it's flat and entirely democratic.

The given services are handled automatically and decentralized.

Any changes must be approved by most members.

Traditional Organization

Most activity is private and not open to the public.

If voting is permitted, votes must be counted internally and the results must be handled manually.

Typically hierarchical in nature.

Changes maybe sought from a single party, or voting maybe offered, depending on the arrangement.

Needs human interaction or centrally controlled automation, which is vulnerable to manipulation.

Future Scope

According to growing number of ethereum proponents ,DAOs can be the future of labour, human organizations , and cultural communities. As a result , some believe that DAOs like DeFi and NFTs will achieve popular adoption before them.

For example :
Assume a vending machine that requires manual input. Looking for technical problems, paying power consumption bills, collecting money, and reloading additional products all involve physical labour. Only if the machine has been a DAO would the human interactions have been reduced or eliminated.

The mechanism could be capable of transmitting records to server, where they would be processed by automated system. DAOs will take the place of CEO decisions , border meetings and ordinary operations in business , reducing the time spent on useless tasks. Furthermore, tokens can be used by shareholders for voting. DAOs can also use tokenomics for altering the recruitment process , hiring engineers and salary decisions.


As a contributor in a DAO, you will have to get involved in the project and not just buy the token on an exchange and hold it.

Once you understand the operation of the tools described above, you understand that the token is power within a DAO. And with great power, comes great responsibility!

For me, it is exciting to be able to participate in communities that are in an initial phase and grow together. We can all be DAO workers and be rewarded in “company shares.” Which I find incredibly groundbreaking.

If you add value to the DAO you will be rewarded for that, win2win.

You can vote and help decide the future of the DAO. You can share your ideas on how to improve the project. You can add value by creating content such as artistic designs, blogs, videos, podcasts, as a web developer, as a mod in discord, or by contributing your time and desire.

Either way you can imagine! It all depends on the type of DAO and the missions that the community decides.

In the next year two words will be trend. Guilds and bounties. Two of the most common ways to contribute to a DAO.


DAOs come to change everything. The Internet has evolved since it was launched in 1983. The web3 represents empowerment of the user that was not known before.

At that time I was not born, but I understand that the internet has become more accessible, cheaper and more stable over the years. As all these platforms are presented in a more friendly way, users will gradually arrive. It is a matter of time before the adoption is massive.

For the first time in history, there will really be equality between countries. Places like Silicon Valley will not monopolize all the technological developments. Instead a group of friends created in a forum, from different parts of the planet, will be able to create a DAO, collect funds, and contract/offer the services to other people.

A web developer from Africa will be able to get the same remuneration as another in Switzerland. This supposes such a radical change in the economies of the countries that it gives for a book, at least.

DAOs are a market yet to be exploited, many experts point to them as the next trend in the crypto world and I agree. The fact that you can also be an investor, an employee and receive “shares” (tokens) will make many people decide to work as a freelancer based on their tastes and preferences through guilds and bounties, instead of for that bastard boss they have.

Writers, developers, designers, economists, lawyers, content creators, community managers, gamers, and a lot of other professions will function completely differently than they do now in the next 10 years.

The future lies in NFTs, the metaverse, and decentralized finance. DAOs will be the most common way to organize and the sooner you understand this, the more benefit you can get out of it.

Thank you, I hope this article helps you get to know DAOs! follow me on twitter. have a nice day. 💫