K
Kathleen Martin
Guest
Would you share a bank account with people you have never met in person? People with whom you have only chatted online and may not even know their real names?
If you answered no, then you are probably not part of a DAO.
A DAO, or decentralized autonomous organization, is a group of people who have entered into a contract with one another to reach a coordinated goal. It can be anything from collecting rare NFTs, to predicting stock market moves. And it usually exists to raise money for a specific purpose.
A DAO distinguishes itself from traditional business arrangements in two big ways. First, DAOs are exclusively online, with members rarely if ever interacting with one another in real life. And second, they operate with rules and targets informed by blockchain technology, a permanent record of digital information that is not run or managed by any central authority, and acts as a ledger of digital transactions online.
Members of a DAO have a shared mission but do not have a leader who directs the group. Instead, decisions are made collectively, informed by the community rather than a single figurehead, hence the “decentralized” part.
DAOs can be involved in any kind of mission or endeavor. FlamingoDAO and PleasrDAO are groups of crypto investors who have teamed up to purchase and collect rare and expensive NFTs. Komorebi Collective is a DAO that finances women and LGBT crypto users. And Friends With Benefits is an online social club DAO with nearly 2,000 members that is turning into a blossoming media empire through its music discovery platform, startup incubator, and online crypto news publication.
Advocates for DAOs believe that they are the long-awaited replacement for centralized corporations. But critics have pointed out that there are many unknowns about the new trend and the implications behind being a part of one, warning that its unregulated nature could cause more harm than good.
Flat hierarchies
DAOs are seemingly flat hierarchies, with no central leader or figurehead, relying on the entire community to make decisions instead. However, even though every DAO member has a say in how the organization is run and its direction, some have more say than others.
When someone becomes part of a DAO, the person buys into the group’s specially made crypto tokens. The more tokens a member owns, the more votes they have to cast.
Continue reading: https://fortune.com/2022/02/15/what-is-a-dao-explaining-decentralized-autonomous-organizations/
If you answered no, then you are probably not part of a DAO.
A DAO, or decentralized autonomous organization, is a group of people who have entered into a contract with one another to reach a coordinated goal. It can be anything from collecting rare NFTs, to predicting stock market moves. And it usually exists to raise money for a specific purpose.
A DAO distinguishes itself from traditional business arrangements in two big ways. First, DAOs are exclusively online, with members rarely if ever interacting with one another in real life. And second, they operate with rules and targets informed by blockchain technology, a permanent record of digital information that is not run or managed by any central authority, and acts as a ledger of digital transactions online.
Members of a DAO have a shared mission but do not have a leader who directs the group. Instead, decisions are made collectively, informed by the community rather than a single figurehead, hence the “decentralized” part.
DAOs can be involved in any kind of mission or endeavor. FlamingoDAO and PleasrDAO are groups of crypto investors who have teamed up to purchase and collect rare and expensive NFTs. Komorebi Collective is a DAO that finances women and LGBT crypto users. And Friends With Benefits is an online social club DAO with nearly 2,000 members that is turning into a blossoming media empire through its music discovery platform, startup incubator, and online crypto news publication.
Advocates for DAOs believe that they are the long-awaited replacement for centralized corporations. But critics have pointed out that there are many unknowns about the new trend and the implications behind being a part of one, warning that its unregulated nature could cause more harm than good.
Flat hierarchies
DAOs are seemingly flat hierarchies, with no central leader or figurehead, relying on the entire community to make decisions instead. However, even though every DAO member has a say in how the organization is run and its direction, some have more say than others.
When someone becomes part of a DAO, the person buys into the group’s specially made crypto tokens. The more tokens a member owns, the more votes they have to cast.
Continue reading: https://fortune.com/2022/02/15/what-is-a-dao-explaining-decentralized-autonomous-organizations/
