An Overview of the DAO
With the growing advent of Cryptocurrency, DAOs are becoming highly sought after. DAO came into existence in 2016. However, it stopped working for a while due to hacking. After reignition, it is attracting several investors, both companies and individuals.
What Is the DAO
DAO is a decentralized blockchain group. In total, it is a Decentralized Autonomous Organization that uses Ethereum as the mode of trading. The DAO platform allows investors to publicly auction and fund projects using Ethereum smart contracts.
Investors in the company have the autonomy for deciding which project the DAO should embark on by voting. The DAO then earns from the profits of the project and shares some to the creators and token holders.
What Are Some DAO Companies?
DAO hosts many companies and businesses that offer different services. The first DAO company was The DAO, created in 2016. Within a month, the company had gained fame and raised $150 Million in profits. The organization offered traders a platform to vote for how they wanted a project to develop.
However, The DAO fell into the hands of hackers who stole $60M. Investors lost trust in the security of the company after the hack. The company later re-established itself and strengthened its security codes.
After the revival, many more different companies joined the DAO platform. The PleasrDAO collects various NFTs and invests in other assets. Then, HerStory DAO, which manages and funds Black women and non-binary artists projects, joined in.
Other DAO companies include Komorebi Collective DAO funds women and non-binary crypto founders. The Friends with Benefits DAO is an exclusive social club that you pay to enter. Finally, MetaCartel Venture DAO is a for-profit business that invests in early-stage decentralized applications.
How DAO Works:
The governance of DAO keeps changing to enhance what works and what isn’t. The governance team is in charge of maintaining the DAO system and is funded through governance tokens. Investors also have the liberty to vote in or out of the current governance system.
One other important aspect of The DAO is anonymity. Token holders can build a reputation in the platform without really being known. This, in turn, provides all traders with a fair chance of trade and receiving rewards even while competing with renowned community members.
Additionally, investors can own a collective NFT art. Each member can then vote on different attributes of a piece of art and change the overall art piece depending on individual features.
Likewise, the platform offers a tracking system for DAO activities. Deep DAO gives an overview of the number of members in the company, proposals at hand, and voting activities.
Traces of DAO
DAO came after a crowdfunding campaign using token sale, which is one of the most extensive crowdfunding campaigns in history.
DAO is centralized; that is, there isn’t a specific group or individual tasked to manage activities in the platform. Who we know, however, are four key players involved in the upcoming DAO. They are; Stephan Tual, Simon Jentzsch, Christoph Jentzsch.