Issue #10: What are DAOs?



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Web3 and Blockchain Trends by Daccred
Web3 and Blockchain Trends by Daccred
The statement, “blockchain technology will touch every sector” proves to be true with every passing day. The innovative prowess of this technology is disrupting almost every known sector of the world economy.

The traditional organizational structure is structured so that the decision-makers of the business organization might not necessarily be stakeholders.
This structure favors the employment of experts in the field, that is, those who have experience in their profession, which is not bad.
The problem with this type of layout is that the success or failure of organizations operating this type of system might not directly affect the significant decision-makers. Hence, the need for reconstruction using the DAO.
A DAO is the short form of Decentralized Autonomous Organisation. It is a community of like-minded people to achieve a specific goal.  The members of a DAO agree to a contract of rules guiding the community before joining in. The rules cannot be changed or tampered with once it has been enacted.
A DAO is decentralized which simply means that there is no central body controlling the organization. A DAO is autonomous which means that it is designed or programmed to run independently. However, this is not quite the case just yet. 
Some characteristics
A DAO might make certain decisions on its own based on the rule coded in the smart contract but still needs the intervention of the community members in specific decision-making processes. The smart contract, an immutable and inflexible code written on the blockchain, serves as the backbone of DAOs.
With the help of the smart contract, the need for trusted people is no longer a priority. The smart contract is an open-source code. This means that anyone can see it and decide whether they want to participate in the organisation.
Holders of the project’s token usually run decentralized Autonomous Organisations. These tokens are used in the process of voting. In some DAO, the number of tokens held determines the level of voting rights. It is believed that in a DAO, decision-makers who are practically the stakeholders would attempt to make decisions that would sabotage the purpose of the organisation.
You can create DAO membership passes as NFTs easily using Daccred, a no-code User-Generated NFT (UGN) platform like Canva.
Wrapping up
This new evolution of hierarchical organizational structure is not limited in any way. DAO can be said to be all over the place and categorized based on their operations.
Protocol DAOs are a set of autonomous organizations that use the organization token as a voting metric to decide the following line of action. Key examples are Uniswap, MakerDAO, Yearn Finance, etc.
Another type of DAO is the Investment DAO. This is a type of the first-ever DAO called “The DAO”. It was a venture capital organization where individuals pool their capital together and decide which projects to invest in. Current examples of this type of DAO are The LAO, BitDAO, etc.
Collector DAO is also a popular type of DAO where NFT artists and/or collectors pool funds together to purchase fractionalized or full NFTs. A good example is Flamingo.
You can create DAO membership passes as NFTs easily using Daccred, a no-code User-Generated NFT (UGN) platform like Canva.
We also have the likes of Grant DAOs, Social DAOs, Service DAOs, and even Media DAOs.
DAOs currently have a market capitalization of about $13 billion with Uniswap, Maker, and Curve, leading the pack.
Billionaire Mark Cuban believes in the potential of this sector of blockchain technology. In his words, “Trustless can surely pay.” 
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Web3 and Blockchain Trends by Daccred
Web3 and Blockchain Trends by Daccred @daccred

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