Decentralized autonomous organizations (DAOs) are kind of like clubs for crypto enthusiasts, only they typically operate under a shared goal, give each member equal say in making decisions, and can potentially have more money than most clubs would ever know what to do with.

1. May 17, 2022
HOW DOES A DAO MAKE MONEY?
—
DAOs will make money by charging access fees to the digital resources they provide. It
makes sense that DAOs make it even more dif몭cult to pay for these resources since
there are no centralized institutions that stand in the way of individual investments.
DAOs generally raise capital in an initial coin offering which can have any form of
regulatory control.
A DAO (or dao for short) is a self-governing entity that operates as an open digital
contracting platform and blockchain network in which the asset token is traded. The
company behind this project is called The Blockchain Centre.
This organization wants to build up its own business, make pro몭ts, run the business in a
democratic way, reinvest those pro몭ts back into the company and make a new currency
– the DAO token.
DECENTRALIZED
AUTONOMOUS
ORGANIZATION

2. A DAO operates according to vote limits set by members, who are entitled to vote on
issues like avoiding membership fees or allowing external projects to use their node
software. When there is consensus within this system then decisions happen rapidly
through voting or even draw straws if members are unable to decide on a solution
appropriately. Understanding a DAO’s business strategy helps understand why they rely
on cryptocurrencies like Ether to fund their operations.
What is a Decentralized autonomous organization?
The decentralization revolution was started by Bitcoin, and introduced in 2008 by
Satoshi Nakamoto.
DAOs operate on the Blockchain cryptocurrency - Ethereum, or any variant of it. The
important concept is that a bit of crypto DAO currency must be handed over to any
person who connects their DAO account with either another people’s Ethereum address
or who pays this token in services like Computer Hacking, Claims Handling, and so
forth. A DAO describes a company that's controlled by its users, has a decentralized
structure, and uses blockchain technology for making decisions.
Different types of DAOs might include:
DAOs can be created using improved technologies that facilitate crowdfunding. Smart
contracts allow for automatic transactions on the blockchain-based on set pre-ordained
protocols.
The protocol sets out speci몭c rules for how the goods are bought and how to maintain
logistical integrity without unnecessary intermediaries. Quorum aims to allow these
businesses to exist without any central point of failure. This project was recently
pro몭led.
DAOs make a pro몭t by charging entrance fees to members of the organization. In
business, investment certi몭cates provide pro몭ts.
The term DAO was 몭rst introduced and discussed in a document called Architectural
Framework by Aragon, lead partner of Verichains and Stratis platform, in a private
message on Fenbushi Capital argonaut chatroom.
DAO stands for decentralized autonomous organization. Speci몭cally what is meant by
the word ‘direct’ is that there are no managers or directors responsible for any decisions
made within the organization such as governance and 몭nance matters (on their own).
Conclusion:
These organizations only act within an economic 몭rewall called a digital manifest and do
not hold regular activities outside of this policy-set framework. Unlike for-pro몭t
businesses where dividends can be paid to shareholders, these organizations exclusively

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May 17, 2022
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