Decentralized Autonomous Organization (DAO) is an organization that is controlled by its members and has rules encoded as a transparent computer program.

Many today's internet users want to joint or to start social organizations where they could work with like-minded folks around the globe, to organize themselves in a safe and effective way, and to exchange values in a trusted environment. DAO is the answer.

DAOs’ operations are fully transparent and global. DAO takes its orders from its online community. It is not influenced by a central government. As the rules are embedded into the code, no managers are needed, thus removing any bureaucracy or hierarchy hurdles.

In comparison to traditional companies, DAOs have a democratized organization. All the members of a DAO need to vote for any changes to be implemented.

Powered by Blockchain

The proliferation of blockchain technology has given rise to DAO. DAO is a way of organizing with other people around the world. Most members of DAO don't know each other, they establish their own rules, and make their own decisions autonomously all encoded on a Blockchain. Blockchain enables automated trusted transactions and value exchanges.

A DAO’s rules and financial transactions are recorded on a blockchain. These transactions are simplified through direct smart contracts.  The smart contract represents the rules of the organization. DAOs are transparent and public, so no one can edit the rules without people noticing.

Funding and Finance

Organizational Structure of DAO

A DAO may function without a legal status as it can be structured as a general partnership.

DAO as a New Trend

DAOs envision a collective centerless inclusive organization owned and managed by its members with all of them having a voice.

Many analysts and industry insiders affirm that this type of organization is coming to prominence, even potentially replacing some traditional companies.

So far DAOs are being used for many purposes such as investment, charity, fundraising, borrowing, or buying non-fungible tokens (NFTs).

Elements of a Fully Functional DAOs

DAOs need the following elements for being fully functional:

1. A set of rules;

2. A funding like tokens that the organization can spend to reward certain activities to their members, and also to provide voting rights for establishing the operation rules;

3. A well and secure structure that allows every investor to configure the organization.

The best social system is like a Free Garden. All I would do to create one would be to be a genuine human.

Sonam Wangmo

Innompic Social System inspires virtuous creativity and turns the Earth to a Planet of Loving Creators.

Vadim Kotelnikov

I-Creator