Funding and Finance
The funding of DAOs is mainly based on
crowdfunding that issues tokens. The explosion of Decentralized Finance
(DeFi) has led to a rise in interest in DAOs.
For example, a DAO can
accept donations from anyone around the world and the members can
decide how to spend donations, all without intermediaries
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
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;
A funding like tokens
organization can spend to reward certain activities to their
members, and also to provide voting rights for establishing the
A well and secure
structure that allows every investor to configure the organization.