Learn the basics of DAOs and how they work

0

[ad_1]

In the latest Cryptopedia episode, viewers can get a succinct and informative overview of decentralized autonomous organizations, or DAOs. Cointelegraph’s Jackson DuMont believes DAOs have the power to “completely transform how work and social collaboration are organized.”

What makes this type of organization both decentralized and autonomous? The answer is smart contracts on the blockchain. Fundamentally, a DAO runs on the lines of computer code written on smart contracts that anyone can interact with in the same way.

DuMont described the three major steps necessary to launch a DAO. The first step is creating that smart contract. The second step is to determine how to receive funding and enact governance, usually done by creating a token. Lastly, the DAO is deployed on the blockchain.

The most popular use case of a DAO is crowdfunding. The money pooled together is put into a smart contract that, in return, issues tokens to DAO members. Tokenholders, who own equity in the DAO, can then vote on how spend the money and vote to appoint delegates. 

In the case of ConstitutionDAO, members raised just over $49 million to buy an original copy of the U.S. Constitution but were outbid at auction. Another example is Blockbuster DAO, which aims to raise enough money to buy the video rental brand from Dish Network and turn it into a streaming film studio.

DAOs intend to reduce the risk of poor leadership through horizontal leadership, or flat hierarchies that level out the playing field of power. The reach is infinite and no matter where a member is located, everyone is bound by the same rules of the smart contract. Trust is placed in code rather than people. 

Related: $53 million raised for Assange showed the power of DAOs

Of course, there remain risks and concerns over legality and security. One notable example of a DAO gone wrong is The DAO, which was hacked for $50 million in 2016. A recent report claims to reveal the identity of the alleged hacker. 

[ad_2]

Source link

Leave A Reply

Your email address will not be published.

bitcoin
Bitcoin (BTC) $ 78,982.00
ethereum
Ethereum (ETH) $ 2,257.63
tether
Tether (USDT) $ 0.998913
bnb
BNB (BNB) $ 700.05
xrp
XRP (XRP) $ 1.24
usd-coin
USDC (USDC) $ 1.00
solana
Solana (SOL) $ 95.85
tron
TRON (TRX) $ 0.332657
staked-ether
Lido Staked Ether (STETH) $ 2,265.05
figure-heloc
Figure Heloc (FIGR_HELOC) $ 1.05
hyperliquid
Hyperliquid (HYPE) $ 92.34
zcash
Zcash (ZEC) $ 1,243.85
dogecoin
Dogecoin (DOGE) $ 0.075371
monero
Monero (XMR) $ 616.03
usds
USDS (USDS) $ 0.999339
whitebit
WhiteBIT Coin (WBT) $ 75.65
wrapped-steth
Wrapped stETH (WSTETH) $ 2,779.67
leo-token
LEO Token (LEO) $ 9.46
chainlink
Chainlink (LINK) $ 11.04
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 76,243.00
cardano
Cardano (ADA) $ 0.191097
binance-bridged-usdt-bnb-smart-chain
Binance Bridged USDT (BNB Smart Chain) (BSC-USD) $ 0.998762
stellar
Stellar (XLM) $ 0.162258
wrapped-beacon-eth
Wrapped Beacon ETH (WBETH) $ 2,466.93
bitcoin-cash
Bitcoin Cash (BCH) $ 272.17
near
NEAR Protocol (NEAR) $ 4.16
rain
Rain (RAIN) $ 0.006600
wrapped-eeth
Wrapped eETH (WEETH) $ 2,465.31
dai
Dai (DAI) $ 1.00
susds
sUSDS (SUSDS) $ 1.08
ethena-usde
Ethena USDe (USDE) $ 0.999027
litecoin
Litecoin (LTC) $ 55.08
uniswap
Uniswap (UNI) $ 6.65
usd1-wlfi
USD1 (USD1) $ 0.998265
coinbase-wrapped-btc
Coinbase Wrapped BTC (CBBTC) $ 76,366.00
canton-network
Canton (CC) $ 0.095852
avalanche-2
Avalanche (AVAX) $ 8.36
blockchain-usd
Blockchain USD (USDB) $ 0.932324
sui
Sui (SUI) $ 0.876888
weth
WETH (WETH) $ 2,268.37
the-open-network
Gram (prev. Toncoin) (GRAM) $ 1.18
tether-gold
Tether Gold (XAUT) $ 4,013.33
global-dollar
Global Dollar (USDG) $ 0.999959
usdt0
USDT0 (USDT0) $ 0.998824
hedera-hashgraph
Hedera (HBAR) $ 0.069462
paypal-usd
PayPal USD (PYUSD) $ 0.999468
bittensor
Bittensor (TAO) $ 239.28
shiba-inu
Shiba Inu (SHIB) $ 0.000005
quant-network
Quant (QNT) $ 184.49
ripple-usd
Ripple USD (RLUSD) $ 0.999834
Shares