What is DAO?

A “Decentralized Autonomous Organization,” or DAO, is an autonomous organisation run by a community, and not any foremost authority. DAOs make use of smart contracts to establish the underlying laws and carry out the chosen course of action. At any time, proposals, votes, and even the code itself may be openly reviewed by the members of the community.
A DAO is ultimately run exclusively by its individual members, who jointly take decisions like anything related to technological advancements and treasury allocations.

What are some benefits of DAO?

DAO is a concept which brings together the best of blockchain. Being Open Source and Trustless, DAO offers complete transparency to its users.

  1. DAO is an entirely open-source platform. Meaning that anyone is welcome to participate in its development and give insights into the platform’s improvement. DAO is available to developers from all around the world because it’s dependable being an open source system.
  2. Another benefit of DAO is that you do not need any person of authority to make decisions for you. DAO is called trustless because it is based on the network’s collective interests since it is not based on any one person. In case, an essential member of the developing team quits working or there’s an issue with the funding, the DAO organisation would have no major impact on itself.

Why is DAO so Important?

A DAO is designed to reinvent the conventional management structures which run most businesses around the world. The most notable feature of DAO is that it aims to equally provide each member with a vote, and the chance to suggest and make changes to projects rather than relying on a single head identity to decide the path of the business. A DAO aims to have robust governance that is controlled by blockchain code.
The phenomenon of DAO is also important because it supports community involvement. How does it do that?
Each member has an active stake in the DAO. The procedures of DAOs are mainly concerned with the notion of letting members exercise their stake in the company. DAO governance tokens reflect the requirement for spending or burning the tokens in order to obtain voting rights. Members are therefore more inclined to vote by taking some time, into consideration. In other words, governance tokens on DAOs enable all users to have a word in what direction the DAO project takes and how it develops.