DAO Development Company
What is a DAO?
To understand what this new concept refers to, first, you have to understand the words that make it up.
DAO Development Services
Organization: group of individuals who meet and work together to achieve a specific objective and purpose.
Autonomous: entity that enjoys the capacity to act independently of external agents.
Decentralized: it does not have a central authority; the functions are dispersed and each of the members has the power to cast their vote.
Well, now we can have a clearer idea. A DAO is a community that works together to accomplish a mission; decisions are made solely by community members and each of them has the ability to vote.
This definition is a good first approach, but it does not capture the full essence of what a Decentralized Autonomous Organization means. To obtain a better overview, let's make a list of the characteristics of these organizations and see how they enrich and build on the previous definition, and thus, better understand what is currently understood as DAO.
Based on blockchain and smart contracts
Within any organization it is important to know who makes decisions and how they do it. The Decentralized Autonomous Organizations are based on the blockchain and the rules of the game defined within smart contracts, which are code scripts that perform a certain action based on an event.
This feature makes these types of organizations enjoy greater transparency , since their activity is recorded on the network and anyone is able to see what the organization is doing with its resources.
These types of organizations are born from an objective that they want to achieve. Members work together to create, capture, and share value toward a shared mission .
The main goal can be to solve a problem, create value or simply buy something.
For example, Constitution DAO is an organization that arose with the purpose of buying a copy of the United States Constitution and raised millions of dollars for it. The organization did not achieve its objective and now the resources are being returned to those who supported the project.
Not all missions are as punctual as the previous one. Some DAOs have goals that require years of work and are more structured and long-lasting organizations. Examples of this are Maker DAO and Uniswap ; whose mission is to promote decentralized finance.
Governance is a word that arises from political theory and refers to a form of government in which the largest possible number of groups are included in order to have a holistic vision of the problem.
Minimum entry barriers
DAO Development Company Depending on the stage of the organization, the way to obtain these tokens may change. Sometimes you have to buy them on an exchange, other times you can obtain them in exchange for delivering something of value to the organization, and other times, all you need is the desire to participate.
No matter what you do, you can always add value to a DAO and become a member of it. If you are a programmer.
This is a relevant point to understand DAOs. In this type of organization, anyone who adds value to the organization can own a significant part of it; not just founders and early investors.
At this point, you should already be clearer about everything that an organization of this style implies, however, we have still remained in the field of theory. In order to bring this to reality and practice it is necessary to see some examples, so let's get to it!
DAOs for everyone
The variety of Decentralized Autonomous Organizations that exist is great; as said before, the meta that gives rise to one can be almost anything, so DAOs can exist for anything. No matter what your interests are if you search hard enough you will find a DAO for it.
In this blogpost we already mentioned ConstitutionDAO, MakerDAO and Uniswap. Now let's look at some more examples.
A DAO focused on community and networking. The value proposition that this organization gives to new members is the possibility of being part of a community of content creators, references and enthusiasts of the crypto ecosystem.
Vector DAO is a community of designers looking to improve blockchain protocol interface designs and increase ecosystem adoption.