A Decentralized Autonomous Organization (DAO) is a digital organization that operates autonomously, meaning it is self-governing and operates without human intervention. It is decentralized, meaning that any single entity does not control it but is governed by its members through a consensus mechanism such as a blockchain.

DAOs are typically run on blockchain networks and are made up of smart contracts, self-executing digital contracts that automatically enforce the rules and regulations of the organization. Members of a DAO can participate by holding and managing digital tokens, which give them voting rights and the ability to propose and vote on decisions.

DAOs are designed to be transparent, immutable, and secure, allowing for fair and transparent decision-making processes. They can be used for various purposes, such as decentralized finance, digital marketplaces, prediction markets, etc. The goal is eliminating intermediaries and allow for more direct and efficient coordination among the members.

Decentralized = Online, global, uncensorable.
Autonomous = Self-governing.
Organization = Coordination & collaboration around shared objectives.

These are just a few examples of Decentralized Autonomous Organizations (DAOs) currently in operation:

MakerDAO: MakerDAO is a decentralized autonomous organization that operates on the Ethereum blockchain and manages the Dai stablecoin, which is pegged to the value of the U.S. dollar. MakerDAO is governed by MKR token holders who vote on changes to the system and make decisions about managing the Dai stablecoin.

MolochDAO: MolochDAO is a decentralized autonomous organization that operates on the Ethereum blockchain and is focused on funding open-source software development. Members of MolochDAO can propose and vote on proposals for funding and make decisions about how to allocate funds to various projects.

Aragon: Aragon is an open-source platform that allows anyone to create and manage a decentralized autonomous organization on the Ethereum blockchain. It provides a user-friendly interface and a set of tools for creating, managing, and governing decentralized organizations and integrating with other decentralized protocols and platforms.

How to DAO

What is a smart contract?

A smart contract is a piece of software that will execute a transaction or an event on a cryptocurrency network if prerequisites defined in the contract are satisfied. They are the building blocks of DAOs.

How can I start a DAO?

  • To obtain some $ETH. You will need at least 0.2 $ETH to set up an Aragon DAO
  • Send your $ETH to your Web3 wallet
  • Navigate to https://client.aragon.org/
  • Click on Connect Account and select your wallet provider in the options
  • Click through the approval process until your wallet is connected
  • Click on ‘Create an Organization’ and follow the instructions to create your DAO
DAO