In 2022 and beyond, the crypto community is looking for newer innovations and novel transformative experiences to shape the new Web 3 reality. In our Web 3 Webinar this week, we narrow down on one interesting concept -- that of DAOs. We also explore smart contracts, the building blocks of DAOs, and analyze how they lend themselves to create useful mechanisms with digital transactions of the future. Our webinar 2022 will examine DAOs, digital assets and crypto, explaining what they are, how they co-exist and interact, what issues can arise and the possible solutions. For more information on Web3 and its wide-ranging potential, read https://www.ionixxtech.com/solution/web3-blockchain-solutions For deeper insights on how a DAO can fit into your business model, watch this video (https://youtu.be/gvT1_q11pHQ) . Subscribe to The Web3 Webinar updates (https://www.ionixxtech.com/resources/events ), our weekly dose of Web3 nuts, bolts, and nuggets.

3. We are a technology company with a design-first approach that helps forward-looking Startups and Enterprise Firms
with:
● Web3 solutions
● FinTech solutions
● & HealthTech solutions
We do this through Cloud-enablement, Enterprise agility, UX Design and other cutting-edge web and mobile technologies.
About Us
About the Speaker
Shaan Ray is a technology researcher and Web 3 specialist who helps organizations
unleash the power of emerging tech in reshaping their business goals.
Under his mentorship, companies embrace transformative solutions to tap new
markets and fresh customer segments.
Shaan specializes in Web3 and emerging tech.

4. Defining DAOs
DAO stands for a Decentralized Autonomous Organization.
It’s an internet-native organization where the management is decentralized, and the
decisions are autonomous thanks to its programmed logic.
Exploring their premise
▪ DAOs are hosted on blockchain platforms.
▪ Blockchains enable DAOs to have decentralized leadership
and management.

5. Defining DAOs
▪ Decisions about the governance and rules of a DAO are made by the
decentralized community associated with the project.
▪ A DAO is designed around a mission or mandate like any other
organization.
▪ A DAO’s business or operational logic is programmed into it and
updated by the community using governance mechanisms.
▪ A DAO is meant to act as a managerial layer that programmatically
decides how to carry out real-world business or charitable
operations.

6. How Do DAOs Work?
▪ Users can get voting rights in a DAO by buying or earning a stake in it in the form of tokens.
▪ Voting rights allow the community of users to create governance proposals.
▪ Ensuring that users are invested in a DAO and have something at stake before voting on proposals helps prevent the
spamming of proposals by users with no vested interests.
▪ Tokens are meant to incentivize user behavior.
▪ DAOs, by design, have built-in treasuries. The treasuries are usually held in the form of crypto, but I think DAOs will soon
also be able to hold fiat currency or fiat currency-based stable coins.
▪ DAOs that exist on public blockchains can be viewed by anyone using a blockchain explorer; this has positive implications
for DAOs built around social or charitable causes.

7. DAOs & Smart Contracts
▪ DAOs operate using Smart Contracts. Smart contracts can be programmed to execute some or all their logic based
on a triggering event. A triggering event can happen when a particular criterion is met, such as a stock or commodity
price reaching a previously specified level or when a date and time are reached.
▪ A smart contract can also be triggered when a signal from the external (real)-world is generated through sensors or
human input and then sent to the DAO through an oracle.
▪ Through smart contracts and oracles, data is fed into a DAO. It is then processed using the DAO’s logic and business
rules, followed by which instructions are sent out to be executed in the real world. Data and information flow into a
DAO, and decisions and instructions flow out.

8. Legality & Jurisdiction of DAOs
▪ DAOs primarily exist on blockchain platforms and can be formed through agreements between groups of users on the platform itself.
No legal entity or formal incorporation in a jurisdiction is required to create a DAO on a blockchain platform.
▪ A DAO could have operations across multiple jurisdictions; for example, it could trade commodities worldwide or engage in
charitable donations in numerous countries. In such a case, the local compliances would have to be completed.
▪ Most DAOs exist online and transact online exclusively. For example, a popular DAO exists to buy and sell NFTs. A project like that
exists solely online and isn’t currently required to comply with any regional laws.
▪ As DAOs go mainstream regulators across the world are likely going to require them to incorporate or register themselves in some
form.

9. 3 Ways To Get Involved With DAOs
▪ Volunteer: You can get involved by working on grant-funded
projects/ad hoc projects for DAOs
▪ Buy In: You can buy into a DAO and add your crypto holdings to the
DAO’s treasury to get voting rights in return.
▪ Start A DAO: Lastly, you can start a DAO of your own with a
community of people rallying around a specific cause or use case.

10. Steps To Start A DAO
▪ Successful DAOs often emerge from online forums or groups of people that rally around a cause or mission. A
passionate founding community or tribe is the starting point. After that, there are three stages to launch a DAO;
development, funding, and deployment.
▪ The first stage is development, where a developer or group of developers create smart contracts that will govern the
DAO’s business logic and various functions.
▪ Next, the DAO needs to specify how to receive funds and enact governance — usually, tokens are sold, and the
holders are given voting rights.
▪ Finally, the DAO needs to be deployed on a blockchain. Once it has been deployed, the stakeholders decide the
future of the DAO, not its developers.

11. Benefits of DAOs
▪ DAOs eliminate centralized control and opaque governance mechanisms. They offer increased transparency and
auditability. DAOs will provide an automated and programmed management layer that can be used across industries
and use cases.
▪ DAOs will have significant implications for data processing, government, healthcare, law enforcement, voting,
community management, charity, and digital businesses, among other industries and use cases. I think hybrid forms
of DAOs to govern limited functions within larger organizations will also pop up.

12. Notable DAOs
MakerDAO MetaCartel
Opolis BanklessDAO
MolochDAO AAVE
Proof of Humanity

13. DAO Risks
▪ If lost, a user’s cryptographic keys cannot be retrieved, resulting in dormant accounts holding tokens in a DAO.
▪ Faulty or buggy code in smart contracts could lead to an output of errors instead of sets of instructions.
▪ Incomplete smart contract code that doesn’t cover certain disputes or situations could lead to lengthy arbitration, decision
paralysis, and general delays.
▪ There are no widely accepted legal frameworks as of this writing that govern DAOs.
▪ DAOs have no clear jurisdiction since they exist online. Alternatively, their operations and the implications of their actions may
be distributed across multiple jurisdictions, meaning they would have to be compliant across multiple jurisdictions depending
on what they are doing there.

14. ▪ DAOs offer a new organizational management system that is distributed,
transparent and automated. They offer collective risk and reward to their
communities based on programmatically executed rules.
▪ DAOs are evolving fast. Developments in a range of peripheral
technologies such as IoT devices, connectivity, smart contracts, and
cryptocurrencies will enhance the complexity of what DAOs will be
capable of in the future.
Conclusion

15. Get in Touch
How Ionixx Can Help
Email: shaan.ray@ionixxtech.com Web: www.ionixxtech.com Telegram: @shaanray
LinkedIn: https://linkedin.com/in/shaanray Twitter: https://twitter.com/shaanray
Keen to build a unique DAO for your business
or want to customize an existing one?