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What is a DAO?
Web3 and Decentralised Autonomous Organisations (DAOs)
Currently, society lacks a simple and effective way to distribute value that benefits both owners and users. Following on from the innovation of blockchain and crypto-currenices new methods for organising and executing shared visions or investments into the world of crypto emerged as a variety of DAOs, Decentralised Autonomous Organisations.
DAOs are defined technically as agreed-upon smart contracts that automate decentralized decision-making over a pool of resources (tokens). Users with tokens vote on how resources get spent, and the code automatically performs the voting outcome.
Using a decentralised DAO framework powered by tokens can improve many of the legacy systems currently in place. Users can build borderless businesses and communities using tokens like shares in a company and coordinate decentralised ownership and make decisions about its future. It is a system of digital cooperation, where ownership is shared for an economic, political or social purpose. Incentives to cooperate are built into a DAO by nature.
However, people define many Web3 communities as DAOs. These communities all have different levels of decentralization and automation by code. Currently, we are exploring what DAOs are and how they might evolve in the future,
Various industries Web3 stands to disrupt and improve
Last modified 7d ago