Makerdao

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Member-owned communities without centralized leadership.A safe way lớn collaborate with internet strangers.A safe place khổng lồ commit funds lớn a specific cause.

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Decentralized autonomous organizations (DAOs)

What are DAOs?

DAOs are an effective and safe way khổng lồ work with like-minded folks around the globe.

Think of them like an internet-native business that's collectively owned & managed by its members. They have built-in treasuries that no one has the authority khổng lồ access without the approval of the group. Decisions are governed by proposals and voting to ensure everyone in the organization has a voice.

There's no CEO who can authorize spending based on their own whims and no chance of a dodgy CFO manipulating the books. Everything is out in the xuất hiện and the rules around spending are baked into the DAO via its code.

Why vị we need DAOs?

Starting an organization with someone that involves funding & money requires a lot of trust in the people you're working with. But it’s hard to lớn trust someone you’ve only ever interacted with on the internet. With DAOs you don’t need to trust anyone else in the group, just the DAO’s code, which is 100% transparent và verifiable by anyone.

This opens up so many new opportunities for global collaboration và coordination.

A comparison


DAOA traditional organization
Usually flat, and fully democratized.Usually hierarchical.
Voting required by members for any changes to lớn be implemented.Depending on structure, changes can be demanded from a sole party, or voting may be offered.
Votes tallied, và outcome implemented automatically without trusted intermediary.If voting allowed, votes are tallied internally, and outcome of voting must be handled manually.
Services offered are handled automatically in a decentralized manner (for example distribution of philanthropic funds).Requires human handling, or centrally controlled automation, prone to lớn manipulation.

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All activity is transparent & fully public.Activity is typically private, and limited to lớn the public.

DAO examples

To help this make more sense, here's a few examples of how you could use a DAO:

A charity – you can accept membership và donations from anyone in the world & the group can decide how they want to spend donations.A freelancer network – you could create a network of contractors who pool their funds for office spaces và software subscriptions.Ventures and grants – you could create a venture fund that pools investment capital và votes on ventures khổng lồ back. Repaid money could later be redistributed amongst DAO-members.

DAO membership

There are different models for DAO membership. Membership can determine how voting works and other key parts of the DAO.

Token-based membership

Usually fully permissionless, depending on the token used. Mostly these governance tokens can be traded permissionlessly on a decentralized exchange. Others must be earned through providing liquidity or some other ‘proof-of-work’. Either way, simply holding the token grants access to voting.

Typically used lớn govern broad decentralized protocols and/or tokens themselves.

A famous exampleMakerDAO – MakerDAO's token MKR is widely available on decentralized exchanges. So anyone can buy into having voting power nguồn on the Maker protocol's future.

Share-based membership

Share-based DAOs are more permissioned, but still quite open. Any prospective members can submit a proposal lớn join the DAO, usually offering tribute of some value in the form of tokens or work. Shares represent direct voting power và ownership. Members can exit at anytime with their proportionate cốt truyện of the treasury.

Typically used for more closer-knit, human-centric organizations lượt thích charities, worker collectives, và investment clubs. Can also govern protocols và tokens as well.

A famous exampleMolochDAO – MolochDAO is focused on funding hawacorp.vn projects. They require a proposal for membership so the group can assess whether you have the necessary expertise & capital to lớn make informed judgments about potential grantees. You can't just buy access to the DAO on the open market.

How do DAOs work?

The backbone of a DAO is its smart contract. The contract defines the rules of the organization and holds the group's treasury. Once the contract is live on hawacorp.vn, no one can change the rules except by a vote. If anyone tries to vị something that's not covered by the rules and xúc tích in the code, it will fail. Và because the treasury is defined by the smart contract too that means no one can spend the money without the group's approval either. This means that DAOs don't need a central authority. Instead the group makes decisions collectively & payments are authorized automatically when votes pass.

This is possible because smart contracts are tamper-proof once they go live on hawacorp.vn. You can't just edit the code (the DAOs rules) without people noticing because everything is public.

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hawacorp.vn & DAOs

hawacorp.vn is the perfect foundation for DAOs for a number of reasons:

hawacorp.vn’s own consensus is distributed và established enough for organizations to trust the network.Smart contract code can’t be modified once live, even by its owners. This allows the DAO lớn run by the rules it was programmed with.Smart contracts can send/receive funds. Without this you'd need a trusted intermediary to manage group funds.The hawacorp.vn community has proven lớn be more collaborative than competitive, allowing for best practices and tư vấn systems to lớn emerge quickly.

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Further reading

DAO Articles

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