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
IS DAO A SMART CONTRACT?
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DAO is short for decentralized autonomous governance. Basically, it is a group of digital
entities that are programmed to carry out and enforce their own policies internally. And
they can automatically reshape and divide asset ownership via the use of technology
without any human intervention needed by all its members.
DAO leverages smart contracts and blockchain as one of its many possible systems that
have set everything in motion for decentralization to truly take effect on an immanent
level.
DAOs are self-executing blockchain-enabled digital entities that moderately manage the
business with two activities; operations and decision making. It's a new way to form a
company - a company without rules and bosses, by the people, for people.
In a DAO you take care of everything that is important to the business without any kind
of interference. With this type of an organization practically there is no need for middle
managers or departments to give orders. You've got control over the company because
it's your own creation!
DECENTRALIZED
AUTONOMOUS
ORGANIZATION

2. DAOs have many prede몭ned roles that are peculiar to the project’s needs and mission
statement. In consequence opportunities such as voting or governance on DAO
instances disappear, but if those roles need to be created, then general membership will
have suf몭cient token shareholding.
The DAO refers to a digital organization that is run by the users and works without
human intervention. It can also be de몭ned as a type of computer program. DAOs
typically feature neither physical remote management nor middlemen.
These characteristics have led some to label them as non-centralized, meaning they are
less vulnerable to external interference.
They have also been labeled as decentralized organizations since they are a technology
that is managing transactions in a distributed manner through private databases. DAO is
usually translated as “autonomous organism” or “digital autonomous organization.” A
digital autonomous organism refers to the idea of a virtual entity that is without a
physical body and makes use of arti몭cial intelligence to control it.
DAOs make use of digital contracts that reside in an unforgeable data storage system,
such as blockchain. The magic word DAO derives from Decentralized Autonomous
organizations, which are organizations whose management rules (i.e., operations
manual) or decision-making procedures are made by smart contracts running on a
blockchain network.
It is likely dif몭cult for many to separate DAO from cryptocurrencies. This association
may not be completely off, as these two concepts are often connected DAO is an
Ethereum smart contract that also bene몭ts from the use of cryptocurrency. DAOs have
a very wide range of potential implementations and important features.
Some sections explore DAO’s implications on management, distribution, ownership, and
leadership structures in a globalized world. As the prospect of such systems seems fairly
nebulous, it seems there is room for this new notion to grow and solidify over time to
create new models for practical application on an organic basis by humankind.
Conclusion:
DAOs don't depend on traditional governance structures. Blockchains can keep
immutable, decentralized records of all transactions, DAOs are autonomous, distributed
organized and use blockchain to self-govern

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May 17, 2022
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