The DAO Essentials: What You Need to Know to Start Your Own DAO

Decentralized Autonomous Organizations (DAOs) are one of many modern blockchain technologies promising a blockchain-based solution for decentralized automated management of any organization. DAOs are a popular governance model in the blockchain sector, with crypto’s roots in decentralization. With a little technical expertise and certain tools, you can quickly set up a DAO. But first, you’ll need a solid strategy and a supportive community. So let’s go over the fundamentals of what you’ll need and how to build up your DAO. What are DAOs? A decentralized autonomous organization (“DAO”) is a group of entities owned and managed with rules written only in computer code. These rules are organized based on the blockchain and given a structure with smart contracts. With Ethereum’s 2016 venture capital fund, “The DAO,” DAOs became well-known. Unfortunately, the project was attacked three weeks into the token sale owing to a programming vulnerability. The funds were later returned due to a hard fork. Despite its early difficulties, the DAO concept has become one of the most widely used governance models for Decentralized Finance (DeFi) projects. However, every DAO is different from each other but must have and follow the same basic principles. How do DAOs work? Smart contracts are known as the main backbone of a DAO. These contracts help hold the group’s treasury and define the organization’s rules. Only a vote can help a group member ...