What is a DAO? In this article, Lotta Spjut gives You an overview of DAOs, Decentralized Autonomous Organizations.
This is the first article of three, and the purpose is to give You an overview of DAOs. As a result, You will get some basic understanding of: What is a DAO, and how is a DAO different from traditional companies (centralized organizations) when making decisions?
Imagine a way of globally organizing and sharing business, ownership, and assets with others with the same interests as you and without knowing each other. Together You are establishing your own rules and making your own decisions autonomously, all encoded on a Blockchain. With DAOs, it is possible.
Today, web3 and the explosion of Decentralized Finance (DeFi) have led to renewed interest in DAOs. A “new” form of organization is turning the worlds of investment, business, and the creative industries upside down. DAOs can replace traditional hierarchies with flat management structures and have no company HQ. A DAO is governed by token holders. Therefore, DAOs are built on rules automatically executed on a blockchain.
Voices from DAO advocates believe DAOs will radically change how businesses are run. Many DAOs have already been launched, and they have created exciting things.
Accordingly, DAOs are transparent because of enabled by the blockchain. Some see DAOs as the future of human organization for the internet. Groups, with few individuals or thousands of people, are all organized with a common interest sharing a “bank” account, without any central authority leading the way.
In Lotta’s next articles, You will find out more about:
What are the pros and cons of a DAO? (Part2)
In what sectors can DAOs be useful? (Part2)
Can and should we replace traditional organizations with DAOs? (Part3)
How to choose what DAO to join? (Part3)
Learning by doing “Balloon DAO.” (Part3)
Link to the full article here!
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