📌 Decentralised Autonomous Organisation (DAO) Summary
A Decentralised Autonomous Organisation, or DAO, is an organisation managed by rules encoded as computer programs on a blockchain. It operates without a central leader or traditional management, instead relying on its members to make collective decisions. Members usually use digital tokens to vote on proposals, budgets, or changes to the organisation.
🙋🏻♂️ Explain Decentralised Autonomous Organisation (DAO) Simply
Imagine a club where every decision is made by a group vote, and the club rules are written in computer code so everyone must follow them. There is no president or boss, just the members working together and using technology to keep things fair and transparent.
📅 How Can it be used?
A DAO could be used for a community-run investment fund where all spending decisions are voted on by token holders.
🗺️ Real World Examples
MakerDAO is a DAO that manages the DAI stablecoin. Its members vote on proposals such as changing interest rates or adding new collateral types, ensuring the system remains stable and secure without a central authority.
Friends With Benefits is a social DAO where members use tokens to join, propose events, and vote on community initiatives, collectively shaping the direction of the group.
✅ FAQ
What is a Decentralised Autonomous Organisation and how does it work?
A Decentralised Autonomous Organisation, or DAO, is a type of organisation that runs on computer code stored on a blockchain. Instead of having a boss or managers, decisions are made by all the members, who usually vote using digital tokens. This means everyone involved has a say in how things are run, and all the rules are transparent and built into the code.
How do people become members of a DAO?
People usually join a DAO by acquiring its digital tokens, which can sometimes be bought, earned, or given away. Holding these tokens lets members take part in votes and discussions about the organisation’s future, making it easy for anyone interested to get involved and have a voice.
What are some benefits of using a DAO instead of a traditional organisation?
DAOs offer more transparency and give everyone a fair chance to participate in decision-making. Since everything is managed by code and recorded on a blockchain, it is much harder for decisions to be made in secret or for power to be concentrated in a few hands. This can help create a more open and democratic way of working together.
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