What is DAO?
DAO (Decentralized Autonomous Organization) is a form of organization managed not directly by people, but through code and smart contracts. All decisions in a DAO are made in a decentralized manner, usually by voting among token holders.
Key principles of DAO:
Autonomy: the rules of the DAO are embedded in the code and executed automatically.
Transparency: all actions (voting, expenses, changes to rules) are recorded on the blockchain.
Decentralization: there is no single owner or boss. Participants themselves decide how to evolve.
How DAO works:
1. Creating a DAO: smart contracts with governance rules are deployed on a blockchain (most often Ethereum).
2. Token: participants receive tokens that they can use to vote.
3. Voting: proposals are put to a vote. The decision that receives the majority wins.
4. Implementation: the smart contract automatically executes the adopted decision.
Examples of DAO:
MakerDAO is a decentralized governance of the DAI stablecoin.
Uniswap DAO determines the development direction of the popular DEX platform.
Aragon is an infrastructure for creating your own DAOs.
Why is this needed?
DAOs allow for the creation of fair, independent communities without centralized authority.
It is the future of project management, communities, even funds and government initiatives.
Advantages of DAO:
-Transparency
-Absence of intermediaries
-Clear, enforceable rules
Disadvantages of DAO:
– Difficulty for beginners
– Potential vulnerabilities in the code
– Conflicts of interest among voters
If decisions were previously made 'from above', they are now in the hands of everyone. DAO is about responsibility, participation, and new forms of democracy in the digital age.