What are DAOs?
A DAO, or Decentralized Autonomous Organization , is an integral concept in support of an organization that operates exclusively according to the rules imposed by the code that constitutes the smart contract under which it is programmed, which is publicly verifiable by all.
DAO Development Services The DAO is autonomous because it operates following the set of rules written in its contract, without the intervention of anyone, except at the time of its creation. The organization is completely independent of its creators and cannot be influenced in any way from the outside.
Its degree of decentralization derives from the fact that all the decisions and actions taken are treated by the entire community in accordance with the proposals in favor of a possible update of the protocol, which can be approved through a voting system, without the presence of an authority. central. controlling the result.
When the community approves a proposal, the entire amount raised by the community goes directly to fund its development. Members have an interest in voting for a better change, as it could increase demand and usage of the platform, thereby increasing the value of the token they hold.
The rules that members of a DAO must follow are strict because they are represented by the set of pre-programmed rules defined in the DAO’s smart contract that describe what can and cannot happen within the system. However, for this to work sustainably over time, it must also have some flexibility.
reason that all the administration rules are written in those lines of code that cannot be modified.
At this point, choosing an intermediary to oversee the proper functioning of the organization would be a waste of time, effort and money, since he is already capable of doing everything on his own.
DAO Development Company The right to vote of a user is represented by the possession of the so-called government token and, thanks to this, the members of the organization can cast their votes on the decisions regarding the development of the protocol. The total supply of issued government tokens in circulation can be understood as a fragmentation of shares in the “corporate world” in which, no matter how much an individual owns, simply owning them gives everyone fair rights.
However, in a DAO there is no hierarchical structure, and this ideal can be compromised by inappropriate allocation of governance tokens to a majority of a few influential individuals.
The mission of a DAO is in full alignment with its values, such as the transparency of financial transactions within the public ledger, founded in accordance with a concept of democracy, non-exclusion of the individual, privacy and anonymity, voluntary participation and non-aggression.
