What Is The Importance Of DAOs?
The term DAO means (decentralized autonomous organization). As a decentralized organization, a DAO is community-led. In theory, there would be no central, hierarchical structure within a DAO. A DAO is similar to any traditional organization like JoystreamDAO, Google, etc. but the big difference is that it is autonomous, which means that activities and decision-making powers transferred to members of the organization from a crowdsourced pool of funds. It is completely transparent, autonomous and works without human intervention, including its original creators
How DAO works
DAOs work using smart contracts, which are essentially pieces of code that are automatically executed when a set of criteria is met. Currently, smart contracts are deployed on many blockchains, although Ethereum was the first to use them. These smart contracts set the rules of the DAO
What is the importance of DAO?
The term DAO says a lot about the reasons it came into existence. Firstly, we have it “decentralized” and “autonomous”. DAOs are not affiliated with any country to ensure complete decentralization. In essence, the developers of the first DAO sought to transfer decision-making power to members of an organization with a crowdsourced pool of funds.
Again, DAOs use blockchain to determine members’ voting rights in proposals to shape the future of an organization or project. At the same time, the benefits of decentralized autonomous organization are also important components of the web3 landscape. As such, DAO is a compelling choice for anyone interested in developing solutions in today’s consumer-facing environ
DAO does not transfer control over a business or organization to one person or group. On the contrary, control over the business and the enterprise rests with a group of supporters or members of the organization. In addition, the benefits of DAO are also marked by the introduction of ( tokens, for example, the name of the token for Joystream is known as tJOY ), which serve as vital tools for voting on various improvement proposals and protocols. Several DAOs with popular examples such as JoystreamDAO, Curve DAO, MakerDAO and others have encouraged many developers and business owners to opt for DAO.
Thus, DAO — is a modern and optimized approach to doing business, because the problem is that those who use dials risk facing legal problems, and all laws, concerning business and their corporate structures were indeed not adapted for decentralized organizations until recently. DAO exist, ensuring accountability and business structure.
DAO Examples
These are some various business groups that act as DAO. Each group has a unique mission, rules and recommendations. Here are examples of famous DAO:
Joystream DAO: open source video platform. https://play.joystream.org/
DAO Maker: is investing in cryptocurrency projects at an early stage.
PlearsDAO: a digital art collection platform.
MetaCartel Venture DAO: An organization that invests in cryptocurrency decentralized applications at an early stage.
Friends with Benefits DAO: This is a unique community to pay for joining.
Conclusion
Although DAO may not be suitable for each business, they have many functions that can make processes in the company more efficient. Transparent, immutable, and trustworthy smart contracts make the DAO model the best for many organizations. Every day, this Ethereum development project continues to improve, and its future looks bright
