A DAO is an online community that jointly controls a cryptocurrency wallet to pursue common goals, like running a business or charity.
DAO stands for Decentralized Autonomous Organization. The term was coined by Ethereum founder Vitalik Buterin in his 2014 article. it's a software application, written specifically to run on cryptocurrency networks. It are often built on any cryptocurrency network with smart contract capabilities, like Polkadot, Cosmos, EOS & Cardano.
In traditional organizations, there’s typically a hierarchy. a formal board of directors, executives or upper management determine the structure and have the power to make changes.
DAOs, on the opposite hand, are decentralized, which means they aren’t governed by one person or entity. the rules and governance of every DAO are coded in smart contracts on the blockchain and can't be changed unless voted upon by the DAO’s members.
Instead of a pick few having the majority of say, members of every DAO can vote on decisions together, typically on equal footing.
The most important aspect of DAOs is transparency, Turley says. Every decision within the DAO is pitched, discussed, voted on and documented publicly.
1. The way to join a DAO
Most DAOs issue their own native tokens so you'll got to own a number of those tokens to become a member. Some DAOs are private and their tokens aren't purchasable , but the bulk are permissionless, meaning that anyone who owns the DAO's token is automatically a member of the DAO that issued those tokens.
Usually, a fraction of a token is enough to hitch , but there could be benefits to owning larger amounts. For instance , token holdings sometimes determine the load of your choose decisions that the DAO makes. Most decisions that DAOs make, especially about the transfer of funds, are voted on by their members.
The easiest thanks to buy a DAO token is to get some $ETH via LocalCryptos, Coinbase, or Binance, send it to a Web3 wallet like Metamask, Frame, or Argent, then swap it for the DAO token in Uniswap. Note: it's good practice to repeat the contract address of the token from Coinmarketcap and paste it into Uniswap instead of checking out the ticker symbol like 'ETH'. this is often because two different tokens may use an equivalent ticker.
2. The way to create a DAO
There are some ways to line up a DAO, but this is often the essential process:
1. Obtain some $ETH. Note: you'll need a minimum of 0.2 $ETH to line up an Aragon DAO.
2. Send your $ETH to your Web3 wallet.
3. Once the $ETH has arrived, navigate to https://client.aragon.org/, click on Connect Account and choose your wallet provider within the options. Click through the approval process until your wallet is connected.
4. Click on 'Create an Organization' and follow the instructions to make your DAO.
5. Here may be a great walkthrough by Sarah Amann: