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👩👩👦👦 There is DAO for that!
DAOs are a super hot topic nowadays in the metaverse. If you have been around, there is a high chance you have seen that word thrown around many times. Last week, I ran a quick Twitter poll, and it showed that more than one-third of the participants didn’t know what a DAO is. It is yet another example of a powerful utility made possible by the blockchain.
A Decentralized Autonomous Organisation (DAO) is a new form of entity governed by its community in coded rules and instructions. Its members define the rules and instructions through a voting system. DAOs issue their token to their members (there are multiple ways how this can happen). Members use the token to govern the DAO, such as to vote for rules, changes, proposals. Most of the time, the token has a monetary value and can be traded openly, similar to how you could buy and sell crypto coins. Remember, all happens in the blockchain; therefore, everything is transparent and secure.
This system can shape an organization’s behavior. Depending on the kind of organization, the community could decide how the savings get invested…
