DAO knowledge simplified in the Hausa language.

What is a DAO?

I know many people do not understand what the term DAO means, due to limited understanding of the English language, and some of us face challenges. Also, in this region, usually about 30% of Hausas are trading cryptocurrency.

So if that’s the case, teacher, this lesson is for you to improve your methods.

The meaning of DAO simply refers to "a self-governing organization that operates digitally". The term is derived from English:

Decentralized

Autonomous

Organization.

A DAO is an organization that uses smart contracts on the blockchain, where there is no single leader. Instead, it is the members of the organization who make decisions through voting and their opinions.

How DAO works simplified.

1. The rules are automatically defined: At the inception of the DAO, its rules are written in the smart contract. This outlines how voting is done, how funds are spent, and other regulations.

2. Anyone who holds a DAO token:

It has the power and ability to decide how it will manage its affairs.

You can vote on a proposal or decision to be executed.

3. Voting on proposals: If there is a new proposal (for example, "let's invest in a new project"), members will vote. If the majority of votes approve, the system will execute this proposal directly – without any individual or leader signing off.

Benefits of DAO for people seeking Web3 knowledge.

Transparency and open operation – everything is clear on the blockchain.

No centralized leadership – all members have equal rights.

Easy access – you can join by purchasing its token.

Community power – members organize leadership and development of the group.

Examples of DAO

1. Uniswap DAO – which oversees direct cryptocurrency exchanges.

2. MakerDAO – which is responsible for the DAO's funds, Ethereum's stablecoin.

3. Aave DAO – which provides lending and borrowing globally through crypto.

Challenges in DAO

Sometimes it can take time to reach a consensus.

There is a voting problem if members do not act honestly.

If the smart contract has an error, it can result in a loss of funds.

In summary:

A DAO is a new governance model that uses blockchain to empower people with the freedom to manage their organization without traditional leadership.

Thank you.