You’ve heard about ICOs, IDOs, IPOs, and raising billions of dollars for blockchain startups — but have you heard of the DAO?

A decentralized autonomous organization (DAO), sometimes called a decentralized autonomous corporation (DAC), is an organization represented by rules encoded as a computer program that is transparent, controlled by the organization members, and not influenced by a central government. A DAO’s financial transaction record and program rules are maintained on a blockchain. (What Wikipedia says).

A DAO eliminates the need to involve a third party in a financial transaction, simplifying those transactions through smart contracts.

Unlike a traditional organization where it’s headed by a bunch of investors and shareholders and C suites in the holy name of hierarchy, a DAO eradicates that.

A DAO is managed collectively by users who can have a say in blockchain-based efforts, goals, strategy, and spending with no need for a ruler (CEO) or an executive team.

You see the freedom yeah?

To join a Dao you only need to buy its Crypto Currency/ Native token, so holding their crypto-asset gives you the ability to vote on proposals and updates, proportional to the amount the DAO holds.

Here is why a DAO is different from any Organization

  • A core group of people came up with the concept.

Let’s take a look at the types of Decentralized autonomous organization (DAO), sometimes called a decentralized autonomous corporation (DAC), is an organization represented by rules encoded as a computer program that is transparent, controlled by the organization members, and not influenced by a central government. A DAO’s financial transaction record and program rules are maintained on a blockchain. (What Wikipedia says).

A DAO eliminates the need to involve a third party in a financial transaction, simplifying those transactions through smart contracts.

Unlike a traditional organization where it’s headed by a bunch of investors and shareholders and C suites in the holy name of hierarchy, a DAO eradicates that.

A DAO is managed collectively by users who can have a say in blockchain-based efforts, goals, strategy, and spending with no need for a ruler (CEO) or an executive team.

You see the freedom yeah?

To join a Dao you only need to buy its Crypto Currency/ Native token, so holding their crypto-asset gives you the ability to vote on proposals and updates, proportional to the amount the DAO holds.

Here is why a DAO is different from any Organization

  • A core group of people came up with the concept.

Let’s take a look at the types of DAO

  • Operating Systems DAOs –These are standalone platforms that allow organizations to create their own DAOs. Examples of projects include Syndicate and CW.

Deficiencies of DAOs

  • Lack of legal/regulatory clarity.

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Adegbite Mubaraq

Adegbite Mubaraq

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Blockchain Copywriter and Marketer |Technical Analyst |Budding Financial Engineer