❓What are DAOs

DAO (Distributed Autonomous Organization) is the abbreviation of "Distributed Autonomous Organization", which is a form of distributed organizational governance based on blockchain. Its core purpose is to form a new decentralized business model through the governance of the DAO organization. DAO emphasizes autonomy, and its autonomy is mainly realized through voting resolutions on organizational resources, event execution, and fund allocation through smart contracts and governance tokens. Every DAO has a treasury structure. Without the DAO's review process, no one has the right to control the funds in the DAO treasury, and all capital expenditure rules are also coded in the DAO's smart contract. Compared with the traditional organizational structure, DAO has the following advantages:

• DAOs are more transparent. DAO community members can vote through governance tokens, and can also view voting, event resolutions, and developments.

• DAOs are more reliable. There is no single point of failure in DAO, and there is no cost of trust. Community members only need to trust the DAO smart contract code, which is 100% transparent and verifiable by anyone.

• DAO is extremely collaborative. The nature of DAOs opens up many new opportunities for truly global collaboration. We conducted an in-depth study of DAO:

DAO is an alternative form of human organization under blockchain governance, which is an extremely sexy narrative. The imaginative space for governance using blockchain technology is huge, for example, it can avoid the cumbersome process of establishing a business and create fluid, temporary, and global economic cooperation.

It is more in line with the spirit advocated by the ancient topic of "democracy": highly open and transparent, anyone can verify whether the rules are followed.

This is an attempt to subvert human judgment and trust logic with technological means. At the same time, DAO represents a trend of putting power in the hands of individuals more equitably—individuals can seek More choice and autonomy for development, and a broader perspective. In simple terms, DAOs are a new way to fund projects, govern communities, and share value. It answers the question of how we will work, invest, create and play together in an increasingly digital and globalized world. If blockchains, NFTs, smart contracts, DeFi protocols, and DAPS are the tools, then DAOs are the groups using them to create new things. If they are "what", DAO is "how".

In May 2016, members of the Ethereum community started exploring the form of decentralized organizations, and since then DAO was officially born. The first born DAO is called Creation DAO. It is built on the Ethereum blockchain with smart A coding framework established in the form of a contract, which is developed by the Slock .IT team, members of the Ethereum community named "The The DAO” deployed it. During this period, the DAO collected 12.7 million ether (approximately 150 million ether at the time U.S. dollars), becoming the largest crowdfunding project in blockchain history. When Ethereum trades at $20, The total value of the DAO has exceeded $250 million. The success of the initial stage was beyond everyone's expectations. With the precipitation of time and the advancement of history, DAO back again. In the first quarter of 2021, new protocols in the NFT field were introduced at the beginning of the quarter and attracted major interest. Streams of attention, especially cryptography and card transactions. Although this trend was in the Ongoing, but the market's attention has slowly shifted to decentralized autonomous organizations (DAOs). At a time when crypto protocols are amassing balance sheets in the tens of millions, DAOs are sparking renewed interest.

As of the end of 2021, the total assets managed by the DAO ecosystem reached $3.165 billion. Although the encryption protocol does not operate in the form of a DAO or through an independent DAO architecture and redefines asset value, reaching this scale is also an important sign of the development of the DAO ecosystem.

For DAO, the technology behind it should be understood. Most DAOs rely on blockchain technology and smart contracts, which are a set of codes that run on the blockchain. The assets of DAOs have grown significantly in the past half year, as most DAO programs have doubled their original tokens since the beginning of the year. Newer DAOs, such as NFTX, Stacker Ventures, and API3, have allocated a large portion of their tokens to their respective DAOs, thereby providing sufficient funds for their development. Traditional organizations typically have a hierarchical structure: a formal board of directors, with executives or senior managers deciding the organizational structure and having the authority to make changes.

But DAOs are decentralized, meaning they are not governed by individuals or entities. The rules and governance of each DAO are encoded in smart contracts on the blockchain and cannot be changed unless voted by DAO members. Members of each DAO will vote together, rather than Often on the basis of equality, the minority decides the majority.

For DAO, the blockchain will serve as the backbone network to Maintain structure and rules on each blockchain. The birth of a DAO must have three basic elements: .Organizational goals and organizational culture that will be shared with strangers. .A rule system, including creation, governance, incentives, etc., will reach a consensus with strangers and pass Blockchain technology is deployed on-chain. .Token will form an interesting relationship with participants to achieve sufficient incentives. Due to the unique ecological attributes of DAO, it is not difficult to see that most DeFi projects in the market have applications of DAO, and the use cases of DAO are endless. Now, it is no longer just an idea that decentralized digital organizations will generate actual economic activity. Five years from now, there will be thousands of these digital organizations, made up of tens of thousands of people and tens of billions of dollars in funding, showing in real time how the future of work is being reshaped.

The original theory has now been transformed into an emerging multi-faceted DAO ecosystem, all of which are functioning according to their own mission. 2021 is undoubtedly the first year of the Metaverse. Seeing the development prospects of the metaverse project, we also He will continue to think dialectically about various problems in the encryption market. How to distinguish and choose better projects, how to participate more effectively in the dividends of Web3.0 and the metaverse era, how to allocate assets more effectively to the projects participating in the construction and better develop their careers, DAO is the current The most valuable entry point.

DAO has the following characteristics:

• Decentralized power, no single source of authority.

• Self-governing, independent, not subject to external coercion.

• Asset members are collectively owned and jointly managed.

• All information and assets are open, transparent and traceable.

• With built-in assets, decisions are made through proposals and voting.

• A decentralized voting mechanism controls the shared treasury.

• A shared goal, vision, or value to work toward