Who is DAO? Or… What on Earth is it?

It is a new day again today and I just learned and understood a new concept native to cryptocurrency. I have read a lot of articles here and in other sites mentioning, promoting, and advocating some kind of DAO.

I didn’t really pay attention to it because I thought it was just another kind of token like NFT or something. I thought it was just an asset that I haven’t heard nor I will ever need in the future. Today, I decided to rid myself of the ignorance with regards to DAO and I learned what it is, at the very least.

What is a DAO?

So is he the guy from the original meteor garden? Okay, if you got that reference, I feel you! If not, well, let us just move on and forget that I ever even thought about that.

I thought that DAO is another asset, in a sense I am not wrong, but it wasn’t asset like BCH or BTC that I can keep on my wallet and trade for, it is an asset of the economy for the future. Lol, did that work?

DAO stands for Decentralized Autonomous Organization. And no, it is not a coin or a token that is readily available on the exchanges. A DAO is a group of people connected online to pursue a specific purpose.

Also, not to get confused or anything, DAO can also refer to the software application that enables a DAO (group) to exist and to function. And we are talking about cryptocurrency so when I say software application, I am referring to smart contracts running on the blockchain.

Decentralized

As native to most blockchain applications, decentralization is almost always a requirement. This means that a DAO doesn’t have a “base of operation” and it lives solely on the blockchain and over the internet. You can be part of a DAO while you are in your bedroom and you can participate with its activity whether you go out of your house or not.

Autonomous

DAO is a self-governing entity. It does not answer to any higher authority. The rule that the DAO writes for itself is the rule that it will follow. No third-party or human intervention is needed to monitor or to make the DAO works.

Unless, of course, it’s been hacked.

DAO doesn’t also need a chairman, a president, or even a leader to function. Every member of a DAO holds a voting power. Every decision and every action made by a DAO is decided by the members collectively and democratically through voting.

Organization

As true with the sense of the word, a DAO is a group of people that shares a common purpose and all work together to realize and achieve that shared purpose. A DAO’s purpose can vary from collecting NFTs to raising funds for charities. What any group of people could do, a DAO can do it better.

How to join a DAO?

If you are interested and if you think that you want to join a bunch of people to serve a specific purpose and if you think that it could give meaning to your life, you can join a DAO.

Most DAOs are open to anyone that who wants to join and being a member is quite easy. All you have to do is buy the DAO’s governance token and you are already a member of the DAO.

MakerDAO is one example of a DAO that is open to anyone. You can buy their token MKR and you will already enjoy the perks of being a member of their DAO. You can even vote on the decisions that the group will face.

Some DAOs aren’t that open though and run on a private side of the spectrum. You can’t buy their governance token anywhere, and I don’t know how to join one. As a matter of fact, I can’t name a single private DAO. If you know any, an invite will be much appreciated.

Also, if you think that your cause is something that is novel, you can make your own DAO and recruit like-minded people. It’s as easy as making your own cryptocurrency. Maybe I’ll try creating one. What would that DAO’s purpose be? I am open to your suggestions.

Hi!!!

I hope that you are doing fine today. And at the same time, I have cleared another term about cryptocurrency for you. I just hope that you picked up something a bit informative today.

Thank you for joining me once again in trying to learn various things in the cryptoverse. I really appreciate you being here.

That’s it from me and until we read again…

Cheers!!!

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Series    : All About Crypto
Title     : Scammers Gonna Scam
Published : 02-Mar-2022
Author :  © RB

References:

A. (2022, January 4). What is a DAO? Aragon’s Blog. Retrieved March 1, 2022, from https://blog.aragon.org/what-is-a-dao/

Bove, T. (2022, February 17). A DAO outbid a billionaire for an original copy of the U.S. constitution last year and nearly won. What a DAO is, and how it could change the future of business. Fortune. Retrieved March 1, 2022, from https://fortune.com/2022/02/15/what-is-a-dao-explaining-decentralized-autonomous-organizations/

Decentralized Autonomous Organization (DAO). (2021, September 24). Investopedia. Retrieved March 1, 2022, from https://www.investopedia.com/tech/what-dao/

Ethereum. (n.d.). Decentralized autonomous organizations (DAOs). Ethereum.Org. Retrieved March 1, 2022, from https://ethereum.org/en/dao/